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Canning line leasing is a financial agreement where a brewery pays a lender a fixed monthly fee to use a canning line for a predetermined period. It is essentially a long-term rental contract for essential business equipment. Instead of purchasing the machinery outright with a large cash payment or a traditional loan, the brewery (the lessee) partners with a financing company like Crestmont Capital (the lessor), which purchases the equipment from the manufacturer on the brewery's behalf.
The brewery then gains full use of the canning line, from depalletizers and fillers to seamers and date coders, in exchange for regular payments. At the end of the lease term, the brewery typically has several options, such as purchasing the equipment, renewing the lease, or returning the equipment and upgrading to a newer model. This structure makes acquiring state-of-the-art packaging technology accessible and affordable, allowing breweries to scale production and expand their market reach without the financial strain of a large capital expenditure.
Unlike a traditional loan where the borrower owns the asset from the start, a lease separates the use of the equipment from its ownership. This distinction provides unique advantages related to cash flow management, technology updates, and budget predictability, making it an incredibly popular financing tool for businesses in capital-intensive industries like craft brewing.
Choosing to lease canning lines for your craft brewery offers a multitude of strategic advantages that go far beyond simply acquiring equipment. It's a financial strategy that can directly impact your cash flow, operational efficiency, and competitive edge.
The process of leasing a canning line is designed to be straightforward and efficient, enabling you to get your equipment up and running as quickly as possible. While specific steps can vary slightly between lenders, the general framework follows a clear path from initial assessment to final installation.
Before you approach a vendor or a lender, you must first define your operational requirements. This is the most critical step, as it dictates the type and cost of the equipment you will lease. Consider factors such as your current and projected production volume, the can sizes you plan to use (12oz, 16oz, etc.), and the physical space available in your facility. Key specifications to determine include:
Once you have a clear picture of your needs, you can research and identify equipment manufacturers and suppliers. Reputable vendors in the craft brewing space include companies like Wild Goose Filling, Cask Global Canning Solutions, and American Beer Equipment (ABE). Contact several vendors to compare features, pricing, and support. After selecting the ideal canning line, obtain a formal quote or invoice from the vendor. This document will detail the total cost of the equipment package, which you will need for your financing application.
With the equipment quote in hand, the next step is to apply for financing. This is where a dedicated business lender like Crestmont Capital comes in. The application process is typically fast and can often be completed online in minutes. You will need to provide basic information about your business, such as its legal name, time in business, and annual revenue, along with the vendor's quote. Our team specializes in capital equipment financing and understands the unique needs of the craft brewing industry.
After you submit your application, the lender will review your business's financial profile to determine approval and present you with financing options. This will include the lease term (e.g., 36, 48, or 60 months), the fixed monthly payment, and the end-of-term options (e.g., $1 Buyout or Fair Market Value). Carefully review the agreement to ensure you understand all the terms and conditions. Once you are satisfied, you will sign the documents electronically.
Upon receipt of the signed lease documents, the financing company will issue a purchase order to your chosen equipment vendor and pay them directly. The vendor will then schedule the shipment and delivery of your new canning line to your brewery. You can then proceed with the installation and begin packaging your beer for the market, making only the manageable monthly lease payments.
The Canning Line Leasing Process: A Quick Guide
1
Define Needs
Determine your required speed (CPM), footprint, and automation level.
2
Get a Quote
Select your canning line and get a formal invoice from the vendor.
3
Apply for Financing
Submit a simple online application with your business details and quote.
4
Get Your Equipment
Sign the lease, we pay the vendor, and your line is delivered.
Not all equipment leases are created equal. They are structured to meet different business objectives, particularly concerning ownership of the asset at the end of the term. Understanding the primary types of leases will help you select the one that best aligns with your brewery's long-term financial strategy.
A Fair Market Value (FMV) lease is often referred to as an "operating lease." It functions like a true rental agreement. You pay to use the canning line for the lease term, and your monthly payments are typically lower than other lease types because you are only financing the depreciation of the equipment, not its full value.
At the end of the term, you have several choices:
Best for: Breweries that want the lowest possible monthly payment and prefer to regularly upgrade to the newest technology. If you anticipate your production needs will change significantly in a few years, an FMV lease provides maximum flexibility.
A $1 Buyout lease, also known as a capital lease or finance lease, is structured more like a traditional loan. The monthly payments are higher than an FMV lease because they are calculated to cover the full cost of the equipment plus interest over the term. The key feature is the end-of-term option: you can purchase the canning line for a nominal amount, typically just $1.
This type of lease is designed for businesses that intend to own the equipment at the end of the financing period. You build equity in the asset with each payment.
Best for: Breweries that are confident the canning line will serve their needs for many years to come and want to own the asset outright. If the equipment has a long useful life and is not subject to rapid technological obsolescence, a $1 Buyout lease is an excellent choice.
A sale-leaseback is a specialized financing solution for breweries that already own their canning line but need to generate working capital. In this arrangement, the brewery sells its existing equipment to a financing company like Crestmont Capital for an agreed-upon price. The financing company then immediately leases the same equipment back to the brewery for a fixed monthly payment.
The result is a significant cash injection for the business without interrupting operations, as the equipment never leaves the facility. The brewery can use the funds for expansion, debt consolidation, marketing, or any other business purpose.
Best for: Established breweries that have significant capital tied up in their existing equipment and need to improve liquidity. It's a powerful way to unlock the equity in your assets to fuel growth.
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Get a Quick Quote →Lenders evaluate several factors to determine a business's eligibility for an equipment lease. While specific requirements vary, the goal is to assess the brewery's ability to make consistent monthly payments over the lease term. At Crestmont Capital, we work with a wide spectrum of businesses, from brand-new startups to established, multi-state breweries.
Here are the primary criteria we consider:
It's important to remember that these factors are considered together. A newer business with strong revenue and an owner with extensive experience may qualify just as easily as an older business with moderate revenue. The best way to know what you qualify for is to complete a simple application.
Industry Insight: The craft brewing industry has shown remarkable resilience and growth. According to a report highlighted by Forbes, while overall production volume saw slight declines, retail dollar sales of craft beer increased, indicating strong consumer demand and pricing power for breweries.
Navigating the world of small business financing can be complex, but at Crestmont Capital, we make it simple. As the #1 rated business lender in the U.S., we are committed to providing the capital solutions that breweries need to thrive. Our expertise in equipment financing means we understand the specific challenges and opportunities within the craft beer industry.
When you partner with us to lease a canning line, you benefit from:
Our mission is to be more than just a lender; we aim to be a long-term financing partner for your brewery. From your first canning line to future expansions, Crestmont Capital is here to provide the capital you need to succeed.
To better understand the practical application of leasing, let's explore a few common scenarios faced by craft breweries and how a lease provides the ideal solution.
The Situation: "Foam & Fable Brewing" is a new startup that has built a loyal following through its taproom. To grow, they need to get their flagship IPA and pilsner into local liquor stores and restaurants. They have a quote for a reliable, semi-automated 20 CPM canning line costing $85,000, but their startup capital is allocated for rent, ingredients, and initial marketing.
The Lease Solution: Instead of draining their cash reserves, Foam & Fable applies for an equipment lease. They are approved for a 60-month Fair Market Value (FMV) lease. Their upfront cost is minimal, allowing them to preserve their working capital for operations. The low monthly payment is easily covered by the new revenue generated from canned beer sales. At the end of the five years, they anticipate needing a faster line anyway, so the FMV structure gives them the perfect flexibility to upgrade.
The Situation: "Riverbend Ales" has been canning for three years and their distribution has expanded to three states. Their current 40 CPM line is running constantly, and they are struggling to meet demand from their distributors. They need to upgrade to a fully automated 100 CPM line, a significant investment of $275,000.
The Lease Solution: Riverbend Ales is confident this new line will be a workhorse for the next decade. They opt for a $1 Buyout lease. While the monthly payments are higher than an FMV lease, they are building equity in a critical asset. The financing allows them to immediately triple their canning capacity, meet all their orders, and take on new accounts. At the end of the term, they will own the high-capacity line for just $1, securing their production capabilities for years to come.
The Situation: "Harbor Light Brewing" has been relying on a mobile canning service to package its beer. While convenient at first, the costs are adding up, and they are frustrated by the scheduling inflexibility, which limits their ability to do special, small-batch releases. They calculate that owning their own line would be more cost-effective and give them full control.
The Lease Solution: Harbor Light secures a lease for a compact, efficient canning line. The fixed monthly lease payment is less than what they were paying the mobile service on average. They now have complete control over their production schedule, allowing them to can beer whenever it's ready. This improves product freshness and enables them to launch a popular series of limited-edition canned beers, boosting both revenue and brand excitement.
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Apply Now →When you need to acquire a canning line, leasing is just one of several options. Understanding how it compares to other common financing methods, like SBA loans or traditional bank loans, can help you make the most informed decision for your brewery.
| Feature | Equipment Lease | SBA Loan | Traditional Bank Loan |
|---|---|---|---|
| Upfront Cost | Very low (e.g., first and last month's payment). | Moderate (typically requires a 10-20% down payment). | High (often requires a 20-30% down payment). |
| Approval Speed | Very fast (often same-day or within 24-48 hours). | Slow (can take several weeks to months). | Slow (typically takes 30-90 days). |
| Collateral | The equipment itself is the collateral. | Often requires a blanket lien on all business assets and a personal guarantee. | Almost always requires a blanket lien and may require additional collateral. |
| Credit Requirements | Flexible; options available for various credit profiles, including startups. | Strict; typically requires strong personal and business credit and 2+ years in business. | Very strict; usually reserved for highly established businesses with excellent credit. |
| End-of-Term Options | Flexible (purchase, renew, or return/upgrade). | You own the equipment once the loan is fully paid off. | You own the equipment once the loan is fully paid off. |
As the table illustrates, while SBA loans and bank loans can offer favorable interest rates, they come with significant hurdles in the form of strict qualifications, slow approval times, and high down payments. For most craft breweries, especially those needing to move quickly, an equipment lease offers an unparalleled combination of speed, flexibility, and capital preservation. For a more detailed look at equipment financing, our guide on Forklift Financing covers many similar principles.
Key Fact: A new automated craft canning line can cost anywhere from $50,000 to over $250,000, making financing a critical component for most breweries looking to scale their packaging operations.
Securing the financing for your new canning line with Crestmont Capital is a simple, four-step process designed to get you from application to operation as efficiently as possible.
Work with your preferred vendor to select the perfect canning line for your brewery's needs and obtain a formal quote or proforma invoice. This document will be essential for the application.
Fill out our secure online application. It takes only a few minutes and requires basic information about your business. There's no cost or obligation to apply.
You'll receive a prompt credit decision from one of our dedicated financing advisors. They will walk you through the approved terms, including your monthly payment and end-of-lease options, ensuring everything is clear and transparent.
Once you e-sign the financing documents, we handle the rest. We pay your vendor directly, and they will coordinate the delivery and installation of your new canning line. You can start canning while making simple, affordable monthly payments.
While a higher credit score generally leads to better terms, there is no strict minimum. Crestmont Capital offers financing solutions for a wide range of credit profiles, including programs for business owners with scores in the low 600s or even lower, depending on other factors like revenue and time in business.
Can I lease a canning line if my brewery is a startup?Yes, absolutely. We have specific financing programs designed for startup breweries (less than two years in business). We consider factors like the owner's industry experience and personal credit history to provide funding for essential launch equipment.
How long does the approval process take?Our application and approval process is exceptionally fast. For most equipment leases under $250,000, you can expect a credit decision within a few hours of submitting your application.
What are the typical lease terms for a canning line?Lease terms are flexible to match your budget. The most common terms range from 24 to 60 months (two to five years). Longer terms, such as 72 or 84 months, may be available for more expensive equipment, resulting in lower monthly payments.
Can I lease used canning equipment?Yes, Crestmont Capital can finance both new and used equipment. Leasing used machinery can be a great way to reduce your monthly costs. We typically require the equipment to be sourced from a reputable dealer or vendor.
What happens at the end of my lease term?This depends on the type of lease you choose. With a Fair Market Value (FMV) lease, you can purchase the equipment, renew the lease, or return it. With a $1 Buyout lease, you own the equipment for $1 at the end of the term.
Are shipping and installation costs covered in the lease?Yes, in most cases. We can structure the lease to cover 100% of the project cost, including these "soft costs" like shipping, installation, and initial training. This allows you to finance the entire package with one simple monthly payment.
Do I need to provide a down payment?Most of our lease programs require very little money down. Typically, you will only need to provide the first and last month's payments upfront, which is significantly less than the 10-20% down payment required by most bank loans.
Can I pay off the lease early?Yes, early buyout options are available. The specific terms for an early buyout will be outlined in your lease agreement. It's best to discuss this with your financing advisor if you anticipate wanting to pay off the lease ahead of schedule.
What information do I need to apply?Our application is simple. You'll need basic information about your business (name, address, time in business), information about the business owner(s), and a copy of the quote for the canning line you wish to lease.
How is my monthly payment calculated?The monthly payment is determined by several factors: the total cost of the equipment, the length of the lease term, the type of lease (FMV or $1 Buyout), and your business's overall credit profile.
Who is responsible for equipment maintenance and repairs?As the lessee, your brewery is responsible for the ongoing maintenance and repair of the canning line, just as if you owned it. The manufacturer's warranty will still apply to new equipment.
Can I lease equipment from any vendor I choose?Yes. Crestmont Capital is vendor-independent, meaning you have the freedom to choose the equipment manufacturer or dealer that best suits your needs. We will work directly with your selected vendor to process the payment once your lease is approved.
What if my business revenue is seasonal?We understand that many businesses, including breweries, can have seasonal fluctuations in revenue. We can often structure customized payment plans, such as seasonal or step-up payments, to align with your cash flow cycles. Be sure to discuss this with your financing advisor.
Will applying for a lease impact my credit score?Our initial application and pre-approval process is a soft credit pull, which does not affect your credit score. This allows you to see your financing options without any impact. A hard credit pull is only performed once you decide to move forward with a specific financing agreement.
Expanding your brewery’s reach from the taproom to retail shelves is a critical step for growth. Acquiring a canning line is the key, but it doesn't have to be a capital-draining purchase. Equipment leasing offers a financially savvy path forward, preserving your cash, providing access to top-tier technology, and giving you the flexibility to adapt in a dynamic market. For any brewery looking to grow, the decision to lease canning lines craft a path to greater distribution and profitability. By partnering with a trusted lender, you can get the equipment you need quickly and focus on what you do best: brewing exceptional beer.
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Apply Now →Disclaimer: The information provided in this article is for general educational purposes only and is not financial, legal, or tax advice. Funding terms, qualifications, and product availability may vary and are subject to change without notice. Crestmont Capital does not guarantee approval, rates, or specific outcomes. For personalized information about your business funding options, contact our team directly.