Ask the Collective
The questions independent drinks founders ask most — answered. Distilled from years of community knowledge so the good stuff never disappears in the feed again.
What short-term cashflow financing options are available for small spirits businesses beyond traditional invoice financing?
For spirits businesses needing quick cashflow to fund production orders, members identified several options beyond invoice financing: - **Capital on Tap credit card** — interest-free if balance is paid off when due; flagged as a low-friction option for short-term working capital. - **Treyd** — specialises in stock funding for drinks businesses; mentioned as a viable option for financing inventory production. - **Ferovinum** — also offers stock funding but members warned of potential communication issues ("beware ghosting"). - **Purchase order financing** — members have explored this route, though noted it can be difficult to find providers willing to work with spirits businesses outside the whisky category. The challenge flagged: traditional invoice financing doesn't help with upfront production costs since payment only arrives after stock delivery. For a £500k production order over 6 weeks, stock-funding options like Treyd or Ferovinum may be more relevant than invoice-based products. However, stock funders can be patchy in responsiveness, so thorough due diligence and communication testing is advisable before commitment.
What financing options are available to drinks companies in the post-COVID period?
Members have identified several post-COVID financing routes worth exploring: - **Recovery Loan Scheme** — Available through high-street banks. Starling is lending at 5% APR over 5 years with facilities up to £100k. Worth enquiring directly with your bank about eligibility. - **Growth Lending selective invoice financing** — Operates at 22.5% APR across your entire invoice book. For a 30-day invoice, the charge is 1.5%. They pay 80% upfront with the remainder settled when they recover the debt, minus interest. Useful for smoothing selective cash-flow gaps. Members recommend requesting an introduction via DM if interested. **Caveats:** Invoice financing costs are material (1.5% per 30 days), so best suited to specific cash-flow pinch points rather than routine working capital. The Recovery Loan Scheme terms may vary by bank and personal/business circumstances.