Starting or expanding a distillery is an exciting venture—but the upfront cost of essential equipment like stills, boilers, and mash tuns can be significant. With equipment loans, you can secure the tools you need without draining your working capital.
In this guide, we’ll break down loan options, benefits, and key considerations for financing distillery equipment.
Function: Distill fermented mash into spirits.
Cost Range: $15,000–$200,000+ depending on size and material.
Types: Pot stills, column stills, hybrid stills.
Function: Heat water and mash during the distillation process.
Cost Range: $10,000–$50,000.
Tip: Ensure capacity matches your still size for optimal efficiency.
Function: Mix grain and water to convert starches into sugars for fermentation.
Cost Range: $5,000–$30,000.
Tip: Look for insulated, jacketed options to maintain temperature control.
Preserve Working Capital – Keep cash available for marketing, ingredients, and staffing.
Fixed Monthly Payments – Predictable costs make budgeting easier.
Ownership Advantage – Unlike leasing, you’ll own the equipment once the loan is paid off.
Potential Tax Deductions – Interest payments and depreciation may be deductible.
| Loan Type | Best For | Repayment Term |
|---|---|---|
| Equipment Loans | Buying new or used distillery equipment | 3–7 years |
| SBA Loans | Larger purchases with favorable rates | 5–10 years |
| Business Lines of Credit | Flexible financing for upgrades | Revolving |
| Vendor Financing | Buying directly from manufacturers | 1–5 years |
Know Your Credit Profile – Higher credit scores often mean better rates.
Prepare a Solid Business Plan – Show lenders your growth strategy and revenue projections.
Compare Multiple Lenders – Get quotes from banks, credit unions, and online lenders.
Negotiate Terms – Ask about prepayment penalties and down payment requirements.
Equipment Package: 500-gallon copper still, steam boiler, mash tun.
Total Cost: $120,000
Loan Term: 5 years
Monthly Payment: Around $2,376
With the right financing, you can get high-quality distillery equipment without delaying your production goals. Whether you’re just starting out or scaling up, an equipment loan can help turn your vision into reality.