Artisan Spirit: Spring 2015

Page 90

THE NEXT UP IN OUR “HOW-TO SERIES” COVERS THE COMPLEX AND POTENTIALLY CONFUSING TOPIC OF LEASING EQUIPMENT FOR YOUR DISTILLING OPERATIONS. THE TEAM AT BOSTON CAPITAL LEASING PROVIDED AN IMPRESSIVE ASSORTMENT OF IN-DEPTH ANSWERS AND ADVICE.

BOSTON CAPITAL LEASING

EQUIPMENT

with

HOW-TO

LEASE WHAT ARE SOME OF THE MOST COMMON SITUATIONS WHERE DISTILLERS LOOK INTO LEASING EQUIPMENT AS AN OPTION?

pieces, while others may include smaller items

Most

WHAT ARE SOME OF THE MOST COMMON PIECES OF EQUIPMENT DISTILLERS LOOK INTO LEASING?

distilleries

typically

consider

leasing

equipment in the planning or expansion stages of their business. As a distiller or business owner begins considering the financial viability of their

such as barrels and barrel racks to the list of equipment they are willing to lease.

operation, many like to compare the long term

The majority of the distillers contact leasing

costs of leasing versus the high up-front capital

companies to lease entire distilling systems (still,

requirement in purchasing distilling equipment.

mash tun, fermenters, tanks, etc.).

To shop around for leasing numbers and

its growth. Similarly, when a distillery is adding

WHAT ARE SOME OF THE DIRECT AND INDIRECT BENEFITS OF LEASING DISTILLING EQUIPMENT?

an additional location or expanding their current

The most obvious direct benefit to leasing

capacity, leasing new equipment can ease

distilling equipment is the savings in upfront

the financial burden and free up capital to

capital. Although there is typically a small security

avoid interrupting the existing business and its

deposit or downpayment on a lease, this payment

operations.

is nominal in comparison to a down payment, or

apply them to a forecasted financial plan could increase the distillery’s profitability and expedite

WHAT KIND OF DISTILLING EQUIPMENT IS AVAILABLE TO LEASE?

full payment, associated with purchasing new distilling equipment. The vital working capital saved through leasing equipment can then be

Nearly all distilling equipment can be leased.

directed back into the business for things such as

Most leasing companies will offer leasing

operating expenses and raw materials.

options on entire systems, including stills, tanks, fermenters and the associated parts, pumps and

An

indirect

benefit

to

leasing

distilling

equipment is the relationship established between

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