Financing a vending business
Like all businesses, vending needs investment in capital and operating expenditure. Buying a vending machine and the first stock is a capital expense that you need to make upfront before making money from your machine. For a small business looking to expand or a first-time investor, the capital expense can be prohibitive. This is where financing helps. Working with a reliable financing partner can help you get the vending business going or drive its growth without worrying about cash for capital. But that is just the tip of the proverbial iceberg. Financing can do much more for your vending business.
Leapfrogging the capital hurdle
Financing options democratize the vending business. As discussed earlier in this article, It empowers small or individual investors to enter the vending industry. Small businesses can leverage finance to accelerate growth. Such broader participation in the vending business results in a perfectly competitive market driving value for all stakeholders.
Scalability translates to profitability
The vending industry is a numbers game. The more the machines, the more significant the number of transactions and the higher the cumulative profits. Under ordinary business circumstances and similar installation locations, investors can multiply their earnings by deploying multiple machines. Financing can help achieve that.
Liquidity in vending equals success
Like all businesses that experience a quick capital turnover, in the vending business, “cash-is-king.” Liquidity drives the risk appetite of the business owner, allowing novel products, promotional campaigns or any other initiatives that can catapult the business to the next level. Financing options help prevent locking up valuable cash in capital expenditure.
Driving customer experience
The primary value that a consumer derives out of a vending machine is convenience. Operators who continuously invest in delivering the best experience for customers stay ahead of the competition. Upgrading the machine with peripherals like touch screens, cashless payment systems, UV disinfection systems and components that guarantee successful transactions can improve the customer’s experience. Such components can be procured and deployed using financing from reliable partners without choking under the weight of capital requirements.
Cost of ownership
Vending machines are electro-mechanical equipment with several moving parts. Such pieces of machinery undergo wear and tear over their life. Maintaining the machines through timely replacement of parts and replenishment of consumables is essential for the long life of the machine. Technology keeps evolving over the life of the machine. Investors need to manage obsolescence by investing in contemporary technology. All such maintenance and upgrades can drive up the cost of ownership. Financing can help tide over challenges due to the cost of ownership.
Finding the right financing partner
The benefits of financing your vending business are clear. From buying to owning and even upgrading vending machines, financing can help make business decisions that drive growth and profitability. However, the key to realizing the full benefits of financing is working with the right financing partner. A financing partner who understands vending is more likely to realize the potential of the business they are funding.
The partner needs to be a reliable firm that can work with your vending machine manufacturer to ensure timely disbursal. This will ensure that you can buy and deploy machines on time and realize profits quicker. Lastly, your financing partner who is willing to finance beyond just the procurement of machines can make a big difference. Partners who can help you upgrade and maintain your machines throughout life can help your business go a long way.
Financing options with eVending
When buying machines from eVending, you can leave financing worries to the experts. eVending and Inland Finance share the 90+ years of legacy and reliability of The Wittern Group. Together, they help you select the best machines, finance their purchase and commission them.
You can download a printable application form and fill it out and fax it to apply. Digitally savvy business owners can also apply online here. Our financing team will process your credit application and suggest flexible finance tenures ranging between 6 and 48 months. You can choose to hold payments for the first 90 days and invest cash from your business back into it. With so many attractive features, making your first steps or growing your existing vending business is such an easy decision to make.
To know more about how we can help you finance your vending business, call us at 1-866-958-4501 or visit us here.