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.
Investors
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.
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.
Investors
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.
Hello my dear friend.
ReplyDeleteA sunny tuesday happy for you.
Thank you for the visit.
Teb.