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 banks should a UK drinks business use, particularly for international transfers and bonded warehouse compatibility?
Banking for drinks businesses requires careful selection as no single provider excels across all needs. Members recommend having multiple bank accounts with different providers to spread risk and access specialised services. **Banks to avoid:** - **Barclays** — Multiple members reported serious problems, including poor handling of overdrafts and corporate relationships. Several described experiences as "horrible" and recommended avoiding "like the plague." **Recommended providers:** - **Virgin Money** — Praised for excellent in-branch service and quick, easy international transfers. - **Standard Chartered** — Recommended for international business operations. - **Starling** — Listed as a viable option, though members note it has both pros and cons like other providers. **Key considerations:** - **Bonded warehouse compatibility** — Members flagged that opening a bonded facility can create banking issues, so confirm your chosen bank can support bonded warehouse operations before committing. - **Multiple accounts strategy** — Members advise holding accounts with at least two providers: one optimised for international transfers and currency exchanges, and others with FSC protection as backup. This approach mitigates single-provider risk and ensures access to specialist services. - **No perfect solution** — Members acknowledged banking feels like "searching for the holy grail but [it] doesn't exist," with various providers having different merits depending on your specific needs. When selecting a bank, prioritise those with proven international transfer capability and confirm bonded warehouse compatibility upfront.
What are the pros and cons of invoice discounting and other cash flow finance solutions for drinks businesses?
Invoice discounting can help with short-term cash flow, but members advise caution: it's easy to become dependent on it and difficult to stop using unless your business has exceptional growth and high gross profit margins. If you proceed, be aware you'll be sacrificing margin as a cost. Members recommend exploring alternative cash flow solutions before committing to invoice discounting: - **Aldermore Bank** — specialises in supporting drinks businesses, though the setup process involves extensive due diligence and audits, which can be lengthy and demanding. The key caveat from the community: unless your growth trajectory and margins are very strong, invoice discounting typically becomes a trap rather than a solution—you end up paying ongoing costs to solve structural cash flow problems rather than addressing the underlying issues.