Financing Used Brewery Equipment

In the craft brewing industry, we’re always looking for ways to bootstrap things to the next level. As such, purchasing used brewing equipment can seem like a really appealing option compared to purchasing brand new brewing equipment, especially when you are considering financing the purchase if the liquid capital is not on hand. “Can you finance the purchase of used brewing equipment?” We get this question all the time! The answer is yes, here at Brewery Finance we can process financing applications for the purchase of used equipment, but there are several very specific requirements to do so. Continue reading to learn exactly what you’ll need to be able to provide if you want to finance the purchase of used brewery equipment.

Notarized Bill of Sale

In order to process a financing application for used brewery equipment, we will need to ensure that the equipment is free and clear. We will do this by conducting a UCC search on the seller to the used equipment you are trying to purchase is free and clear of liens. If the current owner has an outstanding lien on the equipment, we cannot process a financing application. We also require a notarized Bill of Sale from the seller in order to process a financing application on used equipment. 

Photos and a Used Condition Report

Prior to funding your loan, we will need to receive a Used Condition Report with corresponding photos. This should include any details about wear and tear on the equipment, any after-factory modifications that have been made, and any damage or defects. Financing equipment that has the potential to fail would be a problem for you the buyer and us as the financier. An adequate equipment inspection will protect both parties.

Due Diligence Report

Of course, to facilitate any application for debt-based financing we will need to process a due diligence report. This will include looking at various aspects of your financial records to ensure repayment of the loan is viable. The professionals here at Brewery Finance can walk you through the process and explain exactly what pieces of information are required and how to compile it for the due diligence report.

So the answer is yes, we can process financing applications for used brewery equipment, but be prepared to provide all of the necessary paperwork to support your application. If you have more questions about financing used brewery equipment contact a representative of Brewery Finance to learn more.