US-based craft spirits producer Eastside Distilling has secured two working capital facilities, which will enable the company to continue to execute its business plans.

The two facilities, which have a maximum borrowing capacity of $4m, provide additional liquidity and flexibility to the company for its plans.

Eastside Distilling closed a new accounts receivable factoring agreement totalling up to $2m with ENGS Commercial Capital.

Under the deal, the company will be able to borrow up to 85% of the accounts receivable, subject to various terms and conditions detailed in the agreement.

Additionally, TQLA granted a revolving line of credit to Eastside Distilling, which will mature on 15 April next year.

The $2m credit will be used by the company to purchase tequila for its Azuñia product line and general corporate purposes.

Eastside Distilling CEO Lawrence Firestone said: “The closing of these working capital facilities was a key business objective for Eastside enabling us to execute on a number of important initiatives and work toward our strategic objectives without the need for equity dilution.

“We appreciate the commitment from ENGS Commercial Capital and look forward to working with them in the future to support the growth in Eastside.

“Further, the revolving line of credit from TQLA provides a bridge as we work to finalise a larger, expanded inventory working capital facility to maximise flexibility of our valuable spirits inventory going forward.”

In September, Eastside Distilling acquired Azuñia Tequila from Intersect Beverage.

Azuñia’s portfolio includes Blanco Organic Tequila and Reposado Organic Tequila, as well as Añejo Tequila and Azuñia Black Tequila.