Distillery equipment financing is the fastest way for a craft distiller to acquire a still, boiler, mash tun, or bottling line without draining the cash reserves needed to run day-to-day operations. Whether you are opening your first micro distillery or replacing an aging pot still with a larger column system, understanding how distillery equipment financing works can mean the difference between waiting years to expand and getting production-ready equipment on the floor within weeks. This guide walks through every financing option available to craft distillers, what lenders actually look for, and how to move quickly when the right still becomes available.
In This Article
Micro distillery still financing is a form of equipment financing designed specifically to help small and craft distillers purchase or lease the machinery needed to produce spirits, from copper pot stills and column stills to mash tuns, fermentation tanks, condensers, and bottling equipment. Instead of paying the full purchase price upfront, a distillery owner works with a lender who covers the cost of the equipment and structures repayment over a fixed term, typically two to seven years.
This type of distillery equipment financing sits alongside general small business loans and SBA-backed options, but it is tailored to the specific realities of the spirits industry: long production cycles, aging requirements for certain products, seasonal cash flow, and equipment that holds strong resale value. Because the still or tank itself typically serves as collateral, lenders can often approve distillery equipment financing faster and with less documentation than an unsecured loan.
For a growing number of craft distillers, especially those scaling from a hobby-sized setup to a commercial micro distillery, financing has become the default path to equipment ownership rather than an exception. Paying cash for a $40,000 copper pot still or a $150,000 full production line can tie up capital that would otherwise go toward barrels, raw materials, licensing, or payroll during the critical early years of operation.
Financing distilling equipment offers several advantages over paying cash, particularly for a business where capital needs to stay flexible during growth phases.
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Apply Now →The process for financing a still or other distilling equipment follows a fairly predictable path from application to funding, though the exact timeline varies by lender and how much documentation your distillery already has in order.
Lenders evaluating distillery equipment financing applications generally look at three things: time in business, personal and business credit history, and the type and resale value of the equipment being financed. A brand-new distillery with strong personal credit and a clear business plan can still qualify, though terms may differ from an established operation with several years of sales history.
Distillery equipment financing is not limited to the still itself. Most lenders, including Crestmont Capital, finance the full range of equipment a craft distillery needs to operate.
By the Numbers
Distillery Equipment Financing: Key Statistics
73%
Approval rate for equipment financing applications, per a 2023 small business lending survey
1-4 Weeks
Typical time to funding for equipment financing in 2026
80-100%
Percentage of equipment cost most lenders will finance
$1.3T
Estimated annual size of the U.S. equipment financing industry in 2026
Distillery equipment financing tends to be the right fit for a specific set of situations, though the details vary from one operation to the next.
Pro Tip: Because distilling equipment holds strong resale value, many distillers can qualify for financing terms that require little to no down payment, especially when the equipment itself secures the loan.
Craft distillers generally weigh three paths when it comes to acquiring equipment: paying cash, using equipment financing, or applying for an SBA-backed loan. Each has trade-offs worth understanding before you commit.
| Feature | Equipment Financing | Cash Purchase | SBA Loan |
|---|---|---|---|
| Speed to funding | 1 to 4 weeks | Immediate (if cash available) | 4 to 12+ weeks |
| Cash flow impact | Low, spreads cost over time | High, full amount paid upfront | Low, but slower to access |
| Down payment | Often 0-20% | 100% | 10-20% typical |
| Documentation required | Moderate | None | Extensive |
| Best for | Fast equipment acquisition, preserving cash | Distilleries with excess capital reserves | Larger, longer-term expansion projects |
Crestmont Capital works with craft distillers across the country to structure equipment financing around the realities of the spirits business, including seasonal cash flow and the lag between purchasing equipment and generating revenue from aged products. Rather than a one-size-fits-all loan, Crestmont looks at the specific still, tank, or bottling line being financed and builds a payment structure that fits your production timeline.
For distilleries that need working capital alongside equipment financing, whether to cover raw materials, payroll, or barrel purchases, Crestmont also offers unsecured working capital loans that can run alongside an equipment financing agreement. Distilleries exploring larger expansion projects, such as building out a new tasting room or production facility, may also want to review Crestmont's SBA loan programs, which offer longer terms for bigger capital investments.
Distillers who have run into credit challenges in the past are not automatically excluded. Crestmont's bad credit equipment financing program is built specifically for business owners whose personal or business credit history does not reflect a traditional bank's ideal borrower profile, while still giving them a path to the equipment they need. For distilleries weighing a broader commercial financing strategy that covers more than just the still, Crestmont's team can walk through every option side by side.
Distillers researching how similar craft beverage businesses have financed their operations may also find it useful to read Crestmont's guide on funding a craft brewery through business loans, which covers many of the same financing structures used for breweries and distilleries alike, or the deeper dive into distillery equipment loans for stills, boilers, and mash tuns.
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Get Started →The following examples illustrate how distillery equipment financing plays out in practice for different types of craft distillers.
Scenario 1: The first-time distiller. A husband-and-wife team leases a small industrial space and wants to launch a whiskey brand. They need a 500-liter copper pot still, a mash tun, and basic bottling equipment. Rather than spend their entire startup budget on equipment, they finance the still and bottling line, preserving cash for their first several barrel purchases and the multi-year aging period before they can sell anything.
Scenario 2: The scaling gin producer. A three-year-old distillery has outgrown its original 200-liter column still. Demand from local bars and retail has tripled, but a new 1,000-liter column system costs $85,000. The owner finances the new still over 60 months, keeping the old system running as backup, and pays for the upgrade out of increased production revenue rather than a large cash withdrawal.
Scenario 3: The contract distiller adding capacity. A co-packing distillery signs a new client that will double their production volume. To meet the new contract's timeline, they finance a second hybrid still and additional fermentation tanks, allowing them to fulfill the new agreement within eight weeks instead of the six months it would take to save for the equipment in cash.
Scenario 4: The distillery replacing failing equipment. An established rum producer's original still, now 12 years old, requires increasingly frequent and expensive repairs. Rather than continue absorbing repair costs and production downtime, the owner finances a new column still with a manufacturer warranty, eliminating both the repair expense and the production interruptions.
Scenario 5: The distillery adding a bottling line. A growing tequila brand has been hand-bottling every run, limiting output to a few hundred cases per month. Financing a semi-automated bottling and labeling line lets the business triple its monthly bottling capacity without hiring additional staff, paying for the equipment through the increased sales volume it enables.
Distillery equipment financing is a loan or lease structured specifically to help distillers purchase stills, mash tuns, fermentation tanks, bottling lines, and other production equipment, with payments spread over a fixed term instead of paid upfront in cash.
Yes. Many lenders, including Crestmont Capital, work with new distilleries as long as the owner has reasonable personal credit and a clear plan for the business. Because the still itself typically secures the financing, new businesses have more flexibility than they would with an unsecured loan.
Commercial stills range widely based on size and type. Small pot stills for micro distilleries often start around $15,000 to $30,000, while larger column systems for higher-volume production can run $75,000 to $200,000 or more once installation and ancillary equipment are included.
Requirements vary by lender, but many equipment financing programs accept applicants with fair to good personal credit, generally in the 600s and above. Because the equipment secures the loan, some lenders offer more flexibility than a strictly credit-score-driven unsecured product.
Straightforward applications for equipment financing are often approved within one to three business days, with funding to the equipment vendor completed within one to four weeks depending on the lender and how quickly documentation is provided.
In many cases, yes. Lenders generally evaluate used equipment based on its condition, remaining useful life, and resale value. A well-maintained used pot still or column still from a reputable manufacturer can often still qualify for financing.
A pot still performs batch distillation and is favored for whiskey, brandy, and small-batch spirits where flavor character from the base ingredients is important. A column still runs continuously and produces a higher-proof, more consistent spirit, making it popular for vodka, gin, and higher-volume production.
Down payment requirements vary by lender and the applicant's credit profile, but many equipment financing programs require little to no down payment, especially when the equipment itself provides strong collateral value.
Beyond the still itself, most financing packages can cover mash tuns, fermentation tanks, condensers, filtration systems, barrel racks, climate control for aging rooms, and bottling, corking, and labeling equipment.
Equipment financing tends to fund faster and require less documentation, making it a better fit for a single equipment purchase. SBA loans often offer longer repayment terms and lower rates but come with a longer approval process, making them better suited to larger, multi-purpose expansion projects.
Yes. Contract distillers and co-packers finance equipment regularly, often to add capacity quickly when a new client signs on. Lenders evaluate these applications the same way they would any other distillery, focusing on cash flow, credit, and the equipment's value.
Policies vary by lender, but most encourage borrowers to reach out proactively if a payment issue arises. Because the equipment secures the loan, communication early on generally leads to better outcomes than missing payments without contacting the lender.
Repayment terms generally range from 24 to 84 months depending on the type and cost of the equipment, with larger production systems often qualifying for longer terms to keep monthly payments manageable.
Rates vary based on credit profile, time in business, and the specific equipment being financed, but equipment financing generally ranges from roughly 7% to 20% annually. Borrowers with strong credit and an established distillery typically qualify for the lower end of that range.
You can start an application directly through Crestmont Capital's online form. A funding specialist will review your business details and the equipment you need, then walk you through available terms and next steps.
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Apply Now →Distillery equipment financing gives craft distillers a practical way to acquire the stills, tanks, and bottling equipment their business needs without draining the working capital required for barrels, raw materials, and day-to-day operations. Whether you are launching your first micro distillery or scaling an established operation to meet growing demand, financing lets you match your equipment investment to your production timeline instead of your cash reserves. Crestmont Capital works with distillers at every stage to structure equipment financing that fits the realities of the spirits business, from long aging cycles to seasonal sales patterns.
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.