64 WINES&VINES May 2017
BUSINESS PRACTICAL WINERY & VINEYARD
Securing funding for new
bottling equipment
Financing bottling equipment is
a specialized area due to it being
a small market with a handful of
experienced lenders. The down
payment amount required by the
lender (if any) as well as term
and amortization are key consid-
erations. The bottling line manu-
facturer will require a down
payment and progress payments.
Your lender will need to under-
stand and be comfortable with
this process.
During the construction pe-
riod, a lender may charge you
principal and interest, interest
only or may allow the interest to
accrue to the loan balance. The
inherent risk of the request and
the lender's credit policy will de-
termine the structure but also the
total cost of borrowing. The total
cost of borrowing will impact
when your investment in the bot-
tling line will pay for itself.
The term and amortization will
be determined by the lender's
credit policy. Many conventional
lenders utilize IRS depreciation
schedules for this purpose (i.e.,
three, five, seven and sometimes
out to 10 years). Other lenders,
such as a government-guaranteed
lender like the Small Business Ad-
ministration, may utilize the useful
life of the equipment as deter-
mined by an equipment appraisal.
Substantial pieces of equipment
such as a bottling line will com-
monly have a useful life of 15 years
or more. This can significantly de-
crease the debt service associated
with the purchase.
No matter what you decide in
terms of financing specifics, it is
beneficial to select a lender with
experience in the wine and craft
beverage industry who can lend
and also advise you on the right
financial decisions for your spe-
cific need.
Jeff Clark is the domain expert for Live
Oak Bank's Wine and Craft Beverage
Group. He began his wine and craft bev-
erage lending career in Napa Valley, Calif.
Clark works with wineries, breweries and
distilleries throughout the United States.
BOTTLING LINE SUPPLIERS
Company Phone Website
Prospero Equipment Corp. (914) 769-6252 prosperoequipment.com
Prospero Equipment Corp.-
East Coast
(914) 769-6252 prosperoequipment.com
R&S Supply Co. Inc. (707) 252-6969 rssupply.com
Ramondin USA Inc. (707) 944-2277 ramondin.com
Ratliff Engineering
and Packaging Inc.
(916) 389-9569 ratliffengandpkg.tech
Revolution Equipment Sales (707) 573-3154 revolutionequipmentsales.com
Scholle IPN (708) 562-7290 scholleipn.com
Scott Laboratories Inc. (707) 765-6666 scottlab.com
Signature Mobile Bottlers Inc. (503) 720-3579 signaturebottlers.com
Spec Trellising (800) 237-4594 spectrellising.com
St. Patrick's of Texas (210) 402-7326 stpats.com
Steamericas (310) 327-8900 steamericas.com/wine
Tetra Pak (847) 955-6000 tetrapakusa.com
Vacuum Barrier Corp. (781) 933-3570 vacuumbarrier.com
Valentin-Thierion Corp. (707) 320-3877 valentinthierion.com
The Vintner Vault (805) 226-8100 thevintnervault.com
Waterloo Container Co. (888) 539-3922 waterloocontainer.com
WS Packaging Group Inc. (877) 977-5177 wspackaging.com
XpressFill Systems LLC (844) 361-2750 xpressfill.com
For more information about the suppliers listed above, visit winesandvines.com/buyersguide
or see Wines & Vines' 2017 Buyer's Guide.
For your nearest dealer, contact:
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