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What financing terms are generally available from brewhouse equipment vendors?


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Kinnek Knowledge Team

Brewhouse equipment vendors frequently offer financing options through affiliated financing companies (e.g. Brewery Finance).  There are a variety of financing options available.

Typically, you will have the option of:

1) A standard lease
2) A lease-to-own ($1 buyout)
3) PUT (must purchase upon termination - pay percent of original cost to buy)
4) PUT Option (same as PUT but gives you an option to buy, do not HAVE to buy at the end of the lease term)
5) FMV (Fair Market Value, can purchase the equipment for FMV at the end of the term, return the equipment, or renew the lease)

Apr 23, 2014

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Matthew Amoss from Craft Kettle Brewing Equipment

We offer various leasing options through our financing partner. Generally, you should attempt to obtain an equipment secured bank loan prior to considering leasing equipment. There are various SBA (https://www.sba.gov) loans that might fit your needs.

May 31, 2016

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Kevin McDowell from Pioneer Tank and Vessel

It seems leasing companies are popular, but I would take a hard look at the payment vs. a bank loan.  If you have no other option, then yes, a lease is fine to get the job done.  But if you break that lease down into loan terms, it's going to be equivalent to a 33-35% APR loan.  That's with good credit, and the leasing companies don't exactly present the deal to you in those terms.
There are common banks that are lending reasonable money for brewery equipment right now.  They know that the equipment is strong collateral, a hot commodity, and is easy to resell if you default on the loan.  
-Kevin

Feb 11, 2015

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