Vintech Pacific Barrel Lease |
Some things make good sense
- Vintech Pacific Barrel Leasing combines proven Phoenix Barrel Rejuvenation technology with a simple operating lease.
- The service life of your existing barrels is extended by at least three years and the cost of your barrel inventory is reduced by leasing, rather than buying.
- This means a reduced cost per litre of wine produced, without compromising wine quality while your business’s cash and credit resources remain available for funding assets that will appreciate in value and create wealth.
Here is how it works:
- Simply select barrels from your existing inventory that you wish to have rejuvenated.
- Vintech Pacific Barrel Lease will buy these barrels from you at an agreed price.
- The barrels are rejuvenated using patented Phoenix DBS technology, effectively extending their service life for another three years.
- Vintech Pacific Barrel Lease leases the barrels back to you over three years with easy, monthly, fully tax-deductible payments.
- It really is that easy!
Direct Benefits for Winemakers
- Buying capital equipment such as barrels often involves a lengthy budget approval process. Choosing leasing can help shorten the process, achieving the result you want, faster.
- Minimised Impact on Capital Budgets
- For winemakers,Vintech Pacific Barrel Lease is a great way to minimize the impact on your oak capital budget, since month-to-month payments usually come out of your cash budget.
- Reduced Risk
- At the end of the term, leasing gives you the option of simply returning the barrels or extending the contract, making it easier to cascade, upgrade or dispose of the barrels.
New wine barrels are an expensive, rapidly depreciating asset. Funding annual purchases can put significant pressure on any winery’s cash resources and lines of credit.
Of course, paying cash is pretty attractive to some businesses.
But cash isn’t free, it’s a limited asset and there may be better ways to use it than tying it up in depreciating assets like barrels.
It makes good financial sense to buy assets that have appreciation potential and lease assets that depreciate rapidly – so cash can almost always be put to better use than buying barrels.