Vending Machine Financing – Funding For Your Vending Business Startup

Due to the generally low startup costs involved with vending compared to other industries it is not a sensible idea to go too far into debt right away. You may need access to credit at a later date to see you through tough times or to expand so it is best to use savings to cover startup costs if possible. However if your starting capital is insufficient you could consider one of the vending machine financing options below.

Financing from Family and Friends

If you do need funding then a loan from friends or family would be the best way to go. If they have a lot of trust in you and you are sincere with them this arrangement can work well. If things go bad though you can risk losing a lot more than your business.


Alternatively you could look at taking on an investor and giving them an ownership stake in your business. Potential investors would probably want to see a detailed vending business plan. They may also want to have an active role in the management of the business in return for their investment. For the small amount of funding required you are usually better off having 100% ownership of your business and having full control.

Vending Machine Distributors

Vending machine distributors will often offer you financing plans to help you to purchase their machines. It is likely though that you will be required to come up with the money for a sizable down payment. If this is not possible then the distributor’s finance company may be able to offer you financing to cover most of the cost providing that your business plan looks strong and that you have some collateral to offer.

You will also find that some of the distributors that you are able to purchase inventory to stock your vending machines with, can sell to you on credit. Depending on the deal that you work out with them you can usually arrange to pay your invoices within 30 days (Net 30). This is usually only possible if you have a good credit history and are able to show references.

Bank Loans

Seeking a bank loan is another funding option open to some. To have the best chance of being approved you should apply at a bank where you have a good account history, have a detailed business plan to show them and show a willingness to be able to fund at least part of the startup costs out of your own pocket. You will also likely need a guarantor or an asset that can be used as collateral.

Government Loans and Grants

In the US there are government agencies that offer small business loans with more favorable terms than banks. The Small Business Administration can also help to secure a loan for your business.

There are also business grants if you are lucky enough to qualify and these often don’t have to be repaid at all.

Of course these government loans and grants are not easy to get due to high numbers of applicants. However, if you are able to show a solid plan for your vending business and you can prove that you will be doing some good in the community then you will stand a better chance of qualifying for this funding.

Credit Cards

Lastly, for those who have no other options, a variety of credit cards can be used to get cash advances and this money can be used for funding your vending startup. This method is risky though and due to the high interest rates involved you should only do it if you are reasonably sure that you can start paying sizable amounts off the debt within a few months.

What ever methods you turn to for the vending machine financing that you need to start your business make sure that you value every dollar and ensure that it is spent wisely.

Source by Steve P Sutherland

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