tobert88 Posted August 29, 2014 Share Posted August 29, 2014 We are a distillery in San Francisco, CA focusing on making whiskeys from craft beer and are looking to expand our operations to distill and brew in house. We have been on the market for roughly 20 months, have a proven track records with two whiskeys available for purchase, a third release in April of 2015, a vodka and a line of craft bitters. We currently self-distribute but have a distribution network taking over in October to expand our reach throughout California. To facilitate our growth and reduce our costs of production we are seeking to purchase a 15bbl brew setup and a 250 gallon copper pot still. We are currently looking for financing options to purchase this equipment. If anyone has any suggestions I'd appreciate them. Link to comment Share on other sites More sharing options...
ebstauffer Posted August 31, 2014 Share Posted August 31, 2014 You would do well to read up on Rule 506 ( c ) offerings. Link to comment Share on other sites More sharing options...
tobert88 Posted September 1, 2014 Author Share Posted September 1, 2014 Is this considered general solicitation? If anyone just has some experience in obtaining equipment financing that's really all I'm looking for. Appreciate the feedback. Link to comment Share on other sites More sharing options...
Jedd Haas Posted September 1, 2014 Share Posted September 1, 2014 Private investment offers are welcome This is the part that could get you in trouble. If you're really just looking for financing, start with your local banks. Link to comment Share on other sites More sharing options...
tobert88 Posted September 2, 2014 Author Share Posted September 2, 2014 Got it, that part has been removed. Our local bank is hesitant to give us any funding because we are less than 3 years old. Link to comment Share on other sites More sharing options...
Shindig Posted September 2, 2014 Share Posted September 2, 2014 Attach an equipment lease agreement to your business plan and approach people that want a relatively low risk investment (family, friends, elderly).The equipment can be worth almost as much or more than you paid because of the demand. If the business fails they get the equipment back to sell and may even make money off of it. We did it with our brewery and now our distillery. We offered a set percent amortized at 30yrs with a 3yr pay-off/ballon payment. We had a lot f people that wanted to do the equipment rather than shares in the company because they had a tangible thing to sell if things went sideways. Link to comment Share on other sites More sharing options...
adamg Posted September 20, 2014 Share Posted September 20, 2014 If you have decent personal credit some banks will give you a equipment loan that you personally sign for. I got approved for one but it would only pay for equipment, not shipping, tax or installation. Link to comment Share on other sites More sharing options...
MG Thermal Consulting Posted September 22, 2014 Share Posted September 22, 2014 I have just worked with a Bank that did lease for an up and running distillery expansion, partly for my cooling equipment. Their limit on leasing is $10,000 and they will lease new and used equipment. I can email their info if you are interested. Previous posters are correct on Banking info, a lot depends on your collateral. Mike Gronski Link to comment Share on other sites More sharing options...
fstmatt Posted September 30, 2014 Share Posted September 30, 2014 Tobert, We used Accion as our lender. They specialize in smaller (<$100,000) loans for startups. I see that you are in CA: https://us.accion.org/accion-near-you/california They require you 100% collateralize the loan, with either personal or business assets. And it basically amounts to a personal loan, as you must personally guarantee the money. The loan rates are pretty steep (8-10%), but their model is to serve as a bridge until you can qualify for a bank loan. Their is no penalty to buy off the loan or transfer it when you can. The New Mexico branch has been awesome to work with. They offer classes and workshops and lots of networking opportunities, and pride themselves on having a ridiculously low default rate because they try to help their customers as much as possible. Matt Distillery 365 Albuquerque, NM Link to comment Share on other sites More sharing options...
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