Sick of paying huge rental fees for your casks and kegs?
…So was a start-up brewery we helped to purchase their own casks.
Our customer wanted to avoid renting their equipment because they were planning to expand their brewery rapidly and rental fees would have become very expensive to support.
The Challenge
Before the client came to Moorgate Finance, they were paying £960 a month to rent 120 nine gallon casks. The rental fees were required even when the casks weren’t in use and were sitting in storage.
With already expensive rental costs, the option to expand their business seemed impossible as casks would get bigger, driving up rental costs even further.
This is where Moorgate Finance came in.
The option to finance equipment meant the customer could stop paying rental fees immediately and start to get on top of things.
The Solution
Through purchasing their casks, the customer was able to save a whopping £762.61 a month.
The monthly payment for 120 casks was just £197.39 a month. Financing the equipment put an immediate stop to rental fees and also meant the business had gained some valuable assets.
The agreement was placed over 5 years to produce affordable payments for the customer. At the end of the term, the brewery will own the equipment – something that is never achievable with a rental agreement.
The Savings
With the money the brewery saved on their monthly rentals, they were able to re-invest the savings and develop their own taproom. They have also used money to finance their own cask washer for a reasonable monthly fee over a 5-year term.
For help with Motorsport Beverage or Brewery Finance for your business, call us on 01908 92 62 62 or hit APPLY NOW.