Finance Your Vending Machine Business
There are two distinct pillars of starting and maintaining a successful business – passion for the business and the ability to finance the vision.
Perhaps the most important thing in business is passion. The second most important aspect of starting a successful business is financing the venture. It’s the lifeblood of a business. Without it, the business is merely an idea backed only by passion.
Unfortunately, passion comes from within and can’t be taught.
On the other hand, finding and obtaining financing for your vending machine business can. Let’s go through the options and determine which best fits your needs.
Financing Your Business on Your Own
Check your bank account. Do you have enough money to purchase a refurbished soda machine for $1,500-$2,500 and cover your monthly living expenses? If so, that’s great! You’ll likely have enough funding for your initial vending machine investment as well as the vendible products you intend to sell.
If you don’t have enough in your bank account, don’t worry. You’re not alone. Many people are in the same position. Fortunately, there are still plenty of other ways to finance your passion.
Everyone has family and there’s usually someone who can spare enough to finance your vending machine venture. Oftentimes this will be the most flexible financing option. Repayment schedules aren’t strictly enforced and interest charged is minimal, if at all. In most cases, it’s less about the money and more about your family members just wanting to see you succeed.
Bottling Companies can offer alternatives
Bottling companies want to grow their market share at nearly any cost and will supply your business with a vending machine free of charge. In most cases, they’ll even service it at no cost to you! Financing is not even necessary! The only thing you have to pay for is the product that goes into the machines. However, bottling companies may sell the vendible products to you at a price higher than what you would pay to a wholesaler. Also, if the machine breaks, the bottling company may take longer to perform the necessary repairs. Of course, you’ll have to weigh the pros and cons to determine if it’s the right situation for you.
Financing through a supplier
Larger distributors and re-sellers of new and refurbished vending machines have the ability to offer financing to your business at a reasonable cost. This is the most common option used by many vending business start-ups. It’s quick, simple, convenient, and straightforward. Purchasing the machine and agreeing on the terms of the financing are all done in one meeting between you and the dealer.
The only word of caution is to know how much the it’s really worth. Do some research on eBay or other reputable sites to get an idea. This will give you a rough understanding of the cost of various vending machines.