Barrel Rental
Procure your barrels the easy way
It’s getting ever more time-consuming and expensive to procure barrels through traditional financiers. We know their importance to your winemaking process, so we’ve made our barrel rental a far easier, more cash flow friendly option.
How it works
You just give us your wish list and then let us do the rest – simply paying a monthly invoice for the term of the rental. It’s that simple.
The Barrel Rental Process
1.
You decide on your oak requirements and negotiate pricing with the supplier.
2.
You give us your wish list, and we confirm pricing.
3.
Once confirmed, we prepare a rental proposal. You look at this and see if it works for you. We can make adjustments for you to tailor the rental to your cash flow needs.
4.
You sign a contract and make an initial payment to secure the order.
5.
We order the barrels – managing freight, insurance for the shipment, and foreign exchange.
6.
You receive the barrels, then make monthly rental payments for a set term that we decided on together during the rental proposal.
Need to organise barrels for the next vintage?
Contact us today and we’ll find a solution just right for you.
Frequently Asked Questions
This is an Operating Lease: we are hiring the assets out to you. Setting up the lease in this manner means you can fully expense all the lease payment to your P&L*.
*Please note: Sarnia Capital makes no guarantee that rental payments are tax-deductible. It is strongly recommended that you seek your own independent tax advice.
Unlike traditional banks or other financiers, we don’t provide a loan with an attached interest rate; we are simply renting you barrels for a set period. Instead, we provide an asset rental monthly fee based on:
- the cost of the assets,
- the cost to cover our key risks such as foreign exchange,
- and the administration costs we incur in providing you with a customised rental solution.
From here we calculate a monthly rental figure.
By quoting you a fixed monthly rental, we take on the exchange rate risk so you don’t have to worry about currency fluctuations. To achieve this, we use multiple currency hedging strategies over our entire portfolio of asset purchases.
You are responsible for insuring the barrels.
At end of lease, you can either return the barrels, enter into a newly negotiated lease, or Sarnia Capital may offer the barrels for purchase.
An asset rental through Sarnia Capital is entirely different to bank finance or a cash purchase. The benefits include:
- No directors’ guarantees, registered company charges or reporting requirements
- Payments may be fully expensed to your P&L*
- Terms and repayment dates structured to best suit your cash flow requirements
- A fixed monthly payment, not dependent on interest rate and currency fluctuations
- Drastically reduced admin time and costs on your side
*Please note: Sarnia Capital makes no guarantee that rental payments are tax-deductible. It is strongly recommended that you seek your own independent tax advice.