FAQ
RENTING BARRELS
Why should I rent barrels with OakTree?
OakTree knows the complex nature of financing and operating a business. As a privately owned, and self-capitalized company, OakTree offers you the option to offset your cash flow to reinvest your capital into more productive avenues within your business structure.
Wine barrels are a depreciating asset and lose their value quickly. Why put your money into an inevitable loss? OakTree will tailor your payment structure to best support your needs There are no fees, no interest rates, and no up-front costs. Additionally, OakTree offers a fixed rental price throughout the duration of your contract.
Which coopers can I select my barrels from?
OakTree is independent and has no affiliation with any barrel supplier. We understand the sensitivity of each barrel and allow you to choose the cooper that best suits your variety. Once the cooper has been chosen, OakTree handles the ordering and payment of your barrels.
Can I still use OakTree if I have ordered the barrels already?
Yes. OakTree will make payment to the supplier on presentation of the invoice. All we require is for the agent to re-invoice OakTree Rentals rather than you.
How long can I rent the barrels for?
The term of the rental can range between 1–3 years depending on the variety and treatment of the barrels. Rental installments are flexible, as we want to tailor the payments to suit your cash flow needs. A payment structure that best suits your business can be further discussed with an OakTree representative.
APPROVAL AND FINANCING
How do I get approved?
OakTree takes pride in building personal relationships with our clients and we are truly excited to help you in growing your business. Our approval process is simple and easy. If it works for us, it works for you! We love touring wineries, hearing the stories, tasting the wine, and having a conversation. An initial approval will be determined within 24 hours of meeting or application.
What happens if I get approved?
Once approved, OakTree will prepare a Master Rental Agreement. This agreement will cover the current, and future financing requirements. Please know that loan ratios and credit rating will not be affected. Additionally no liens on your business assets are required.
How much does it cost?
OakTree quotes all rentals in USD. The variables will be dependent on the cost of the barrel, the term of the rental, and the payment structure. All rental payments are fixed installments with no interest rate fluctuations. For a quote, please send OakTree your desired wish list.
How are rentals treated financially?
OakTree remains the owner of the barrels through the rental period, This excludes the rental from your monthly balance sheets. Payments are reflected as an operating expense on the income statement. Rental payments are deducted for federal and state tax purposes when the expense is paid. For instance, if you entered into a rental on Sep. 1, 2012, you would deduct 12 payments in 2012. If it is a three-year rental, that would represent 1/3 of the total payment.
What happens at the end of the term?
OakTree will hold ownership of the barrels throughout the rental agreement term. At the end of the term, you have an option to purchase the barrels at a nominal amount, but are in no way obligated to do so. The choice is strictly yours.
GETTING STARTED
For more information about pricing and applying for OakTree Rentals please contact us.
Tiaan Bezuidenhout
CEO
(415) 717-1620
tiaan@oaktreerentals.com
Nina Bezuidenhout
Sales and Marketing Director
(805) 453-4206
nina@oaktreerentals.com
For a quote we kindly ask you to make a “wish list” of your desired barrels and quantities. We’ll get back to you with an all inclusive quarterly or monthly fixed rental figure.
It’s as easy as that!