Food Industry Business Loans — Microbrewery & Distillery Finance

Quick summary: Yes — lenders and specialist finance providers do fund microbreweries and distilleries for canning lines and cold storage expansion. Typical routes include asset/equipment finance (hire purchase, leasing), secured commercial loans for site works, and alternative working‑capital products. The best terms depend on your trading history, margins, contracts, compliance (alcohol licences and duty), collateral and the asset valuation. For a free, no‑obligation eligibility check and tailored matches to lenders and brokers, Get Quote Now — Free eligibility check.

UK Business Loans is not a lender and does not provide regulated financial advice. We introduce businesses to brokers and lenders. Submitting an enquiry is free and won’t affect your credit score. Offers depend on lender checks and eligibility.

Quick answer — will lenders fund canning lines & cold storage?

Short answer: yes — subject to eligibility and the finance route you choose.

• Asset & equipment finance is commonly used for canning lines and refrigeration units so you can spread the cost and retain working capital.
• Secured commercial loans (including property‑backed lending) are typical for larger cold‑store construction or significant site works.
• Leasing can suit short‑term or upgradeable kit, while hire purchase provides ownership at the end of the term.
• Invoice finance, overdrafts or short‑term facilities can support the increased working capital needs that come with higher packaging/stock levels.

All funding is subject to lender assessment and underwriting checks, including credit and affordability tests.

What finance options are commonly used?

Asset & equipment finance

Asset finance (hire purchase, finance leases, equipment loans) is the most common route for canning lines and specialised refrigeration. Lenders take the equipment as collateral; repayments are spread over an agreed term aligned with the asset’s useful life. Benefits: lower up‑front cash requirement, predictable monthly payments and possible VAT handling options (depending on the lender).

Commercial term loans & secured lending

For cold storage expansions that involve building works, racking, electrical upgrades or larger refrigerated warehouses, lenders often prefer secured commercial loans or mortgages against property. Terms are longer (often 5–15 years) and lending decisions hinge on cashflow forecasts and the value of the security.

Operating leases & rental

Operating leases are viable if you want to avoid ownership or need the flexibility to upgrade. They tend to sit off balance sheet for some borrowers (speak to your accountant) and suit shorter term needs.

Alternative options

Invoice finance, merchant cash advances, crowdfunding and grants can bridge working capital gaps or contribute towards smaller capex items. These alternatives are often more expensive than asset finance but useful when cashflow is tight or when suppliers require partial payment up front.

How lenders assess microbreweries & distilleries (what they look for)

Lenders evaluate the business as a whole. Below are the most important criteria:

• Trading history & turnover: many lenders prefer at least 12 months of trading, with stronger offers for 2+ years and consistent sales. Start‑ups can be financed by specialist lenders if the business plan and director experience are strong.
• Profitability & margins: gross margins on your beer, spirits and packaged products matter — high margins improve servicing capacity and lender confidence.
• Management & sector experience: an experienced founder or head brewer/distiller reduces perceived risk.
• Business plan & forecasts: clear, realistic canning throughput, seasonal cashflow modelling and sensitivity analysis show you’ve thought through demand and stock build.
• Sales channels & contracts: long‑term supply agreements, wholesale contracts or distribution deals increase lender appetite versus purely on‑trade/taproom revenue.
• Licences & compliance: HMRC alcohol duty registrations, HACCP, waste and environmental permits — lenders will check these are in order.
• Asset value & collateral: the condition, age and resale value of canning lines and refrigeration equipment affect loan size and term.
• Credit profile & existing debt: company and director credit histories influence pricing and the need for personal guarantees.

Specialist funders who understand breweries and distilleries are often more flexible and realistic about seasonality and margin cycles than general lenders.

Typical costs, loan sizes & terms for equipment and cold storage

Numbers below are illustrative ranges to help planning — actual quotes vary by lender, equipment supplier and your business profile.

• Canning lines: entry‑level semi‑automatic lines can start around £20,000–£120,000. Mid to high‑end automated lines typically range £120,000–£400,000+.
• Cold storage: modular cold rooms and walk‑in refrigeration: £10,000–£100,000+ depending on size, insulation and installation work. Larger refrigerated warehouse fit‑outs and plant room upgrades can be considerably more.
• Loan sizes we arrange: UK Business Loans typically helps match businesses seeking finance from around £10,000 upwards.
• Typical terms: equipment finance: 2–7 years; property/cold storage secured loans: 5–15 years. Leasing can be 1–5 years.
• Costs & rates: interest and fees vary widely. Specialist asset lenders often offer competitive pricing for well‑secured deals; unsecured options and merchant advances are more expensive.

Example (illustrative): a £150,000 canning line on a 5‑year hire purchase might have a monthly repayment that conserves cash compared with an outright purchase — talk to a broker to see sample repayment schedules for your circumstances.

Security, covenants and grants

Understand what lenders typically expect:

• Security: fixed charge over equipment, debenture over company assets, property charge or personal guarantees are common depending on loan size and risk.
• Covenants: lenders may require minimum cash balances, debt service coverage ratios (DSCR), monthly reporting or restrictions on further borrowing.
• Grants & support: many local authorities, LEPs and the British Business Bank offer grants or match‑funding for food processing, storage or energy efficiency upgrades. Always check GOV.UK and local enterprise sites for current schemes — grants change regularly and can reduce the amount you need to borrow.

Practical application process & timeline

Here’s what to expect next when seeking finance for a canning line or cold storage expansion:

1. Prepare documents: management accounts (latest 12–24 months where available), bank statements, business plan with canning/throughput forecasts, three supplier quotes (equipment & installation), licences and proof of tenancy/ownership.
2. Eligibility check & match: we use your brief to match you to the most relevant brokers and lenders.
3. Application submission: brokers submit to selected lenders/buyers; some lenders give fast soft decisions.
4. Valuation & technical checks: for large or second‑hand kit, an independent condition report or survey may be required.
5. Offer & legal completion: once terms agreed, security documents are completed and funds drawn.
6. Drawdown & delivery: lenders often pay suppliers directly to ensure installation and commissioning.

Typical timelines: small asset finance can be agreed in a few days and completed in 3–10 working days; larger secured loans and property work can take several weeks to a few months depending on legal and technical complexity.

Get Quote Now — Free eligibility check

UK Business Loans is not a lender and does not provide regulated financial advice. Submitting an enquiry is free and won’t affect your credit score. Offers depend on lender checks and eligibility.

Frequently asked questions

Can I finance a second‑hand canning line?

Yes. Many asset lenders finance used equipment provided it is in good condition and an independent valuation confirms its market value. Expect the lender to consider age, spare parts availability and expected lifespan.

Do I need a long trading history?

Not always. Some specialist lenders and brokers will consider start‑ups or early stage businesses when supported by strong management experience, credible forecasts and supplier contracts. That said, established trading improves access to cheaper options.

Will making an enquiry affect our credit score?

No — completing our match enquiry is a soft, no‑obligation step and won’t affect your credit score. Lenders may perform credit checks later if you choose to proceed with an application.

Are there grants for energy‑efficient refrigeration?

Occasionally — regional and national schemes sometimes fund energy efficiency or low‑carbon refrigeration. Check GOV.UK and local enterprise programmes for current offers and eligibility.

What documents will lenders typically request?

Recent management accounts, business bank statements (usually 3–6 months), equipment quotes, licences (alcohol duty registration), proof of ownership/tenancy and director ID documents are commonly required.

How UK Business Loans helps you

We don’t provide loans. We make it quicker and easier for you to find the right finance by matching your business with lenders and brokers who specialise in the food and beverage sector.

• Free, quick eligibility check — typically takes under 2 minutes to submit.
• We match you to partners experienced in equipment finance for breweries and in commercial lending for cold storage.
• We handle the introductions so you can focus on quotes and supplier negotiations.

Get Started — Free Eligibility Check

Disclosure: UK Business Loans is not a lender and does not provide regulated financial advice. Submitting an enquiry is free and won’t affect your credit score. Offers are subject to lender checks and eligibility.

For more general funding guidance across the food sector, see our food industry guide on food industry business loans: food industry business loans.

Ready to get a tailored quote?

Getting an indicative match is quick and free. Complete a short enquiry and we’ll connect you to lenders or brokers who understand brewery and distillery finance, from equipment loans to secured property finance. Typical matches start from £10,000 upward.

Get Quote Now — Free Eligibility Check

Submitting an enquiry is free and won’t affect your credit score. We are an introducer, not a lender. Offers depend on lender checks and eligibility.

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Written by John Smith, Industry Finance Specialist – UK Business Loans. John has 12 years’ experience arranging asset and commercial finance for food and beverage businesses across the UK. Contact: our contact page.

1. Can lenders finance canning lines and cold storage for microbreweries and distilleries?
Yes — lenders commonly provide asset finance (hire purchase, leasing), secured commercial loans and other business loans for canning lines and refrigeration, subject to eligibility.

2. What finance options are best for purchasing a canning line or refrigeration equipment?
Asset/equipment finance (hire purchase or finance leases) is typical for canning lines and refrigeration, with secured property loans used for larger cold‑store construction.

3. How much can I borrow for a canning line or cold storage expansion?
Equipment costs commonly range from around £10,000 up to £400,000+ depending on specification, and UK Business Loans matches enquiries for funding from roughly £10,000 upwards.

4. What documents will lenders usually request when applying for equipment or cold storage finance?
Lenders typically ask for recent management accounts, business bank statements, supplier quotes, licences (e.g. alcohol duty), proof of tenancy/ownership and director ID.

5. Do I need a long trading history to get a business loan for a brewery or distillery?
Not always — specialist lenders may fund start‑ups with strong management experience, credible forecasts and contracts, though 12–24 months trading improves options.

6. Will submitting an enquiry through UK Business Loans affect our credit score?
No — the enquiry form is only used to match your business with suitable lenders and brokers and won’t affect your credit score, though lenders may run checks later if you proceed.

7. How long does it take to get a finance decision and drawdown for equipment or cold storage?
Small asset finance deals can be agreed in days and completed in 3–10 working days, while larger secured loans and property works can take several weeks to months.

8. Can I finance a second‑hand canning line or refurbished refrigeration unit?
Yes — many asset lenders finance used equipment provided it’s in good condition, supported by an independent valuation and acceptable expected lifespan.

9. What security and covenants should I expect when borrowing for equipment or cold storage?
Expect equipment fixed charges, company debentures, property charges or personal guarantees for larger loans, plus possible covenants like minimum cash balances or DSCR reporting.

10. Are there grants or schemes to help fund energy‑efficient refrigeration or cold storage upgrades?
Occasionally — regional, LEP and national schemes (and sometimes the British Business Bank) offer grants or match‑funding for energy‑efficiency projects, so check GOV.UK and local enterprise programmes.