“If you would know the value of money, go and try to borrow some.” -Ben Franklin

Here are two financial tools that may be useful when making a decision about borrowing money for your brewery:

Financial pro forma

This tool answers the question: Will the cash flow of my business support the re-payment of this loan?

Debt service coverage and leverage ratios

This tool answers the question: What financial promises am I making to the bank, and what do I need to do in order to keep them?

Below is a short explainer video: How to use the financial pro forma and debt service/leverage ratios.

P.S. Learn more about the network of beer industry financial professionals: the Beer Business Finance Association. We talk about brewery debt, funding, and cash flow all the time!

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