Creating excellent brews gives us much joy, but we also need to think about our money responsibilities. Having worked in this field for many years, I have seen both good and bad times with money matters. Today, I want to talk about how payday loans in San Diego can help (or harm?) your small business brewing business and also look at brewery financing in a more general way.
The Skinny on Payday Loans
Okay, talk about payday loans. They are like that one time you tried making homemade brew after drinking too much – they look like a good idea at first, but then you might wish you had never done it. Here’s how they typically work:
You receive small money quickly, often under 500 dollars. You agree to return it once your next payday comes. The lender tacks on some fees and interest.
Now, you may be thinking, “That does not sound so bad.” But here is the main point — the interest on these loans can be very harsh. We are discussing rates so high that even the strongest imperial stout would taste like water in comparison. It is definitely something that leaves a bitter feeling, no doubt about it.
The Pros and Cons of Breweries Payday Loans
Let’s break it down, brewery style:
Pros
- Fast cash when you’re in a tight spot
- They don’t care much about your credit score
- You can apply without jumping through a ton of hoops
Cons
- The interest rates are through the roof
- You’ve gotta pay ’em back quickly
- It’s easy to get stuck in a cycle of debt
- They’re not really designed for business use
I understand. Sometimes, you need money quickly, like when your walk-in cooler stops working just before a busy weekend. But use these loans not too much, like that very rare thing you only take out for important times.
Alternatives to Keep Your Brewery Flowing
Now let’s discuss some cheaper and more flexible options you can turn to.
Bank Loans
These are similar to your traditional lager — reliable, but sometimes challenging. They often provide lower interest rates but only for people with a strong credit score and a financial history that is more extensive than your list of favorite beers. If you are just beginning or face some difficulties, it can be hard to get one.
Credit Unions
Think of these like the local brewpub in the world of finance. They often offer better deals than big banks and probably know more about what small businesses, such as ours, require. Plus, you’re dealing with real people, not some faceless corporation. But keep in mind that you need a membership to access all the perks.
