Craft distilling is capital-intensive in a distinctive way: raw spirit must mature before it can be sold, meaning revenue is deferred even as costs — grain, energy, barrels, duty — continue to accumulate. Business finance can bridge that gap without diluting equity or taking on a permanent banking relationship.
Common financing needs for distilleries
- Copper pot stills, column stills and condensers
- Cask purchases and bonded warehouse fees
- HMRC duty deposits, which can be substantial before a single bottle ships
- Bottling lines, labelling equipment and compliance packaging
- Working capital while aged stock is maturing
Matching the product to the need
Where the cost is a defined capital item — a new still or a bottling line — a Credicorp Business Loan provides a fixed sum over a fixed short term with predictable repayments. Where cashflow needs vary month to month, Credicorp Flex gives a revolving credit limit you can draw on and repay repeatedly, so you are not paying interest on idle funds. For a one-off supplier invoice — say, a large barrel order — Credicorp Slice spreads payment across three or four weekly instalments at a flat 6% fee.
Practical points for distillery directors
- Duty liability timing is predictable — align repayment schedules with it
- Export markets can introduce additional currency and lead-time risk; keep a liquidity buffer
- Visitor centre or tasting-room revenue often comes in peaks; seasonal Flex drawdowns can cover troughs
We lend only to UK limited companies and LLPs, and the loan is to the company with no director personal guarantee. As business finance outside the consumer-credit regime, it is not covered by the Financial Ombudsman Service or FSCS.
See also: How can a micro-brewery fund equipment, stock or seasonal cashflow?, Business finance for artisan and craft bakeries.