Ferncroft Business Loans, a small-business funding service in Sheboygan, Wisconsin, helps bars, pubs and taverns in Sheboygan County request inventory financing, equipment financing and term loans from lending partners. This page covers liquor inventory, coolers and draft systems, remodels, financing the purchase of a pub, how license timing affects a purchase, and county figures for drinking places.
| Bar and tavern employers, county | 54 (CBP 2023, NAICS 7224) |
|---|---|
| Share under five employees | 55.6% (CBP 2023) |
| Bar employers in ZIP 53081 | 29 (ZBP 2023) |
| Bars without payroll | 29 (NES 2024) |
A Tavern's Cash Cycle
Bars sell for cash and card every night and buy beer, wine and spirits on distributor schedules and terms. Stock on the shelf, coolers, ice machines and draft lines are items a bar may need to fund or replace. A bar that also runs a kitchen adds restaurant-style equipment on top.
More than half of the county's drinking places with employees had fewer than five employees (55.6%, CBP 2023); at that size a large purchase is felt directly.
Financing Liquor and Beer Inventory
Stocking a new bar, expanding the spirits selection or buying ahead of a price change can call for inventory financing. Partners financing alcohol inventory may ask how it is tracked and how quickly it turns. Distributor payment terms vary; a line of credit is one option for routine restocking.
Bar Equipment Financing
Back-bar coolers, glycol draft systems, ice machines, glass washers, point-of-sale systems and kitchen equipment for bars that serve food are financed through equipment financing. Draft systems installed into walls and floors are harder for a partner to recover than freestanding coolers, so ask whether they can go on the equipment invoice or belong in a remodel budget.
How to Finance Buying a Pub
Buying an existing bar can be financed with a term loan. The partner reviews the seller's sales history, tax returns and any lease, and the price may be split among the building if included, equipment, inventory and goodwill. Opening inventory can be financed separately so it is repaid as it sells.
The license can set the timeline. Financing and licensing are separate approvals; confirm with the licensing office how a transfer affects the closing date. Ask the partner how it handles that sequence before signing a purchase agreement.
Can You Finance a Liquor License?
The answer depends on the license rules and on the partner. A license is not equipment, and partners may treat tangible things differently. In a bar purchase, the license cost, if there is one, may be part of the overall purchase financed by a term loan rather than a separate loan.
A lender does not issue a liquor license; confirm licensing questions with the City of Sheboygan.
Matching Needs to Options
| What you are paying for | Option that usually fits | Why |
|---|---|---|
| Opening stock or a larger spirits selection | Inventory financing | The stock secures it as it sells |
| Cooler, ice machine, draft system | Equipment financing | Freestanding gear suits equipment financing |
| Remodel or patio build-out | Term loan | One-time, long-lived |
| Buying the bar | Term loan | Price covers equipment, stock and goodwill |
What Partners Review
- Bank and card processing statements
- Sales by category if you track it: beer, wine, spirits, food
- The lease and its remaining term
- Distributor invoices showing purchase volume
- For a purchase: the seller's records and the purchase agreement
Adding Food, a Patio or Live Music
Taverns that add a kitchen take on restaurant costs: a hood, a fryer, a cooler and any permits and inspections that apply. A patio adds furniture, fencing, heaters and sometimes a separate service bar. Each changes the business's cost structure as well as its sales, so a partner will want to see the plan, not just the quote. Kitchen equipment fits equipment financing; the construction around it fits a term loan.
Before adding any of these, confirm with the city what the license and zoning allow at your location; a partner may not fund an addition that cannot open.
Bars and Taverns in Sheboygan County, WI
Sheboygan County had 54 drinking places with employees in 2023, with 250 employees and about $4.4 million in payroll (CBP 2023, NAICS 7224), an average under five employees each by our arithmetic. Thirty of them, 55.6%, had fewer than five employees, and 29 had a ZIP 53081 address (ZBP 2023). Separately, 29 drinking places had no payroll in 2024 (NES); the programs differ, so the counts are not combined.
Bars that run a full kitchen share many questions with restaurants. Countywide numbers sit on the Sheboygan, WI page, and every sector on the industries hub.
By Ferncroft Business Loans · Updated