Bath-headquartered alternative funder Time Finance has helped put a distillery on the path to major expansion after setting it up with a £100,000 funding facility.
Two Drifters, pictured, which produces sustainable rum from its Exeter base, will use the facility to make its regular alcohol duty taxes, so freeing up cashflow to increase bottling and distribution.
The distillery was set up in 2019 by husband-and-wife duo Russ and Gemma Wakeham with a vision of creating a distillery which was carbon negative, partnering with suppliers to ensure they deliver the best quality product with the least amount of environmental impact.
Their commitment includes running it on 100% renewable energy as well as considering smaller details such as printing bottle labels close to their delivery location to avoid excess carbon footprint.
It has doubled its profits year-on-year, having recently secured contracts with a major airline, multiple restaurants, bars and other stockists across the UK.
The distillery, one of only a few British rum producers, recently featured in the last-ever episode of The Hairy Bikers – and, according to Russ, within minutes had received “thousands and thousands” of website orders.
The new funding injection from Time Finance, which specialises in asset, loan and invoice finance products, will enable Two Drifters to expand its production capacity by easing the cashflow challenges linked to making and shipping the spirit.
The distillery has also recently opened to the public for tours, meaning additional funding was needed for an on-site bar.
Russ Wakeham said: “The deal set up with Time Finance was to manage one specific area of our business, and that’s the need for regular payment of tax duty.
“For every £35 bottle of rum we sell, £12 is tax. That cost for our business is constant – it needs to be paid on the day our rum leaves the distillery.
“So while the business is thriving and profitable, we have taken on major new stockists, which means payment and cashflow have become less predictable for the business.”
He said with a business model typically centred on selling through stockists, the influx of direct website orders following the TV appearance had been a surprise.
“The business is growing at a fantastic rate, and we want to keep it that way, and with this facility from Time Finance we can continue to create the very best, carbon negative rum,” he added.
Time Finance business development manager Mike Freebury, pictured, said the deal with Two Drifters was “a great example” of where alternative lenders could be a lifeline to a business, coming at a time when traditional lenders were reluctant to fund small businesses.
“We always take our time to get to know a business and understand how our funding supports their ambitions,” he added.
“We sat down with Russ and Gemma and worked out the pressure points and unique circumstances of their business’ operations.
“Two Drifters is a brilliant business and I’m pleased that we have the capability to provide speedy and effective financial solutions to help them grow.”
