Coffee Roaster Financing Options

[jwade20]

As a start-up business, I'm looking for ways to finance a coffee roaster. Does anyone have any advice on how they were able to do it whether it was via bank loan, private loan, financing options at the roasting company, etc? I'm currently working off of an air roaster, but want to purchase a 5kg gas or electric roaster. Appreciate any feedback.

 

[Musicphan]

Talk to your local banker... they should be able to provide you a commercial loan on a piece of capital equipment like the roaster. I have also seen a leasing company advertise in Roast magazine that specializes in roaster leasing.

 

[chast]

Most important is how is your credit? Must be almost perfect. Sterling Capital in NY finances restaurant equipment. Bank Loan is better. Depending on your relationship with the bank would determine if they want to risk the roaster. Some roaster manufacturers have a leasing option through an outside source.

 

[John P]

There's always a home equity loan. Many a small business owner has put the house through the revolving financial door.

 

[slurp]

If you like to be in business for long DO NOT GET A LOAN!!! The used equipment dealers are loaded up from auctions and repos.



Save your money and buy your equipment outright. restaurant loans have very high interest rate due to the likely hood they will fail.


I am not saying to not buy a roaster just saying save your money and buy it out right.


Most banks do not write loans for less than $75k as they do not see any profit in the loan.

If you can not afford a roaster that size find a local roaster and rent time from them. Maybe they will teach you how to roast before you drop $7k ish

Keep in mind you need more than just a roaster, do not forget about green bean, bags, sealer, grinders and so on.

Just my $0.02

 

[jwade20]

Charlie: My credit is great, always looking for ways to continue to build it. I'll check into recommended leasing options from manufacturers. Thanks!

 

[jwade20]

Slurp: I have considered the other costs, which is why I looked at financing for the roaster only as I can take care of the other costs on my own. I can work with my bank, but wondered if any other coffee roasters had alternative means of financing options that I was unaware of. Appreciate your input

 

[slurp]

He's of luck. Let us know which you choose and we look forward to your input here on the forums.

 

[dsmolicz]

Where are you located? I'm working with the BDC (Business development bank of Canada) and they have been really helpful.

 

[jwade20]

Mid-west area

 

[JumpinJakJava]

Agree with John P. If you have enough equity or own your home outright, you will not beat the interest rate to get that home equity loan.
I would get a fixed rate though, they seem to promote the variable rate.

 

[JCF]

Different kinds of Loan offer Advantages vs. Disadvantages. Shop around. Today many of the Larger banks are starting to consider and process Personal Loans. If the amount you need is not more than 50.000 you may want to consider them. You can look for them online. Just Goggle the specific Bank under Personal Loans. The Interest Rates are higher than the Home Equity but your house is not on the line. Additionally, you must remember that if you get a Home Equity you will have to keep your House Insured during the time of loan. Thus, they all have considerations that must be evaluated. GOOD LUCK. :coffeemug:

 

[empeg9000]

If you like to be in business for long DO NOT GET A LOAN!!! The used equipment dealers are loaded up from auctions and repos.



Save your money and buy your equipment outright. restaurant loans have very high interest rate due to the likely hood they will fail.


I am not saying to not buy a roaster just saying save your money and buy it out right.


Most banks do not write loans for less than $75k as they do not see any profit in the loan.

If you can not afford a roaster that size find a local roaster and rent time from them. Maybe they will teach you how to roast before you drop $7k ish

Keep in mind you need more than just a roaster, do not forget about green bean, bags, sealer, grinders and so on.

Just my $0.02

Agreed. This is the path I have taken. I paid cash for my roaster and other equipment. If don't sell a lot in the beginning isn't going to bankrupt me. Growth has been slow but its only been a couple months.

 

[DanTheFinanceMan]

Talk to your local banker... they should be able to provide you a commercial loan on a piece of capital equipment like the roaster. I have also seen a leasing company advertise in Roast magazine that specializes in roaster leasing.

I know this is an older thread, but I just joined the forum and felt the need to make my first post. We are the company you are referencing from Roast Magazine. Specialty Coffee Finance (specialtycoffeefinance dot com) We provide both roaster financing and roaster leasing options.

 

[BescaRoasting]

Hey there, if you are looking to finance a 5 kilo gas roaster, check out Besca USA. Besca offers top quality roasters, and we have financing options available through Pinnacle Finance, who are really great to work with. Since you are in the midwest, I would love to have you come visit our showroom. We have a Semi-Auto 2 Kilo Besca profile roaster that we let clients play with. Shoot me a PM, or check us out for more details. We always love to roast with new people