Leasing vending machines

[danieledney]

Hi,

Im currently writing a business plan to start up a vending machine business, it has a bit of a twist that i'm sure will make this business stand out. All very exciting, however, i'm finding the whole 'lease' aspect confusing. Every VM company I have called has outrightly said they are not willing to lease to a sole trader. Although i could buy cheaper refurbed VM's from ebay and vinyl wrap them to make them look newer its not the same as having the security that if something was to go wrong with the machine then it will be fixed, as its leased.

Are there any ways of getting round this type of thing? I cant afford brand new VM's so just trying to think outside the box

Thank you

Daniel

 

[Nochexman]

Have you thought about starting a limited company?

 

[danieledney]

Hi,

Thanks for the reply.

Would setting up a ltd company make a difference to my problem?? I'm new to business (very new)

Also would a bad credit score affect my ability to lease?

 

[richofwombwell]

I'd start with second hand machines first of all !

Do you mean they provide it you on credit or are you saying you won't own the machine at all ?

R

 

[Mark T Jones]

Hi,

Thanks for the reply.

Would setting up a ltd company make a difference to my problem?? I'm new to business (very new)

Also would a bad credit score affect my ability to lease?

This is far more likely to be the issue than your sole trader status

It actuall;y depends what your bad credit score relates to, and what financial substance you have behind you. Other than leasing the machines, do you have capital to run the business

 

[Nsarah6]

Hi Daniel, it's most likely because those particular finance companies that you've spoken with aren't covered by the FCA to lend to regulated customers such as sole-traders or small partnerships. I can recommend a good leasing company that I've used in the past whom do finance regulated customers. I've worked in business equipment a while and know for certain that you can lease vending machines new or refurbished. PM me if you still need the info.

 

[Talay]

Reverse you business plan and go for revenue sharing on sites which you own or control. Make 200% sure you have control of the site though or they will push you out.

 

[TheConsulter]

To run a vending machine business can be great. However, there are some things you need to think about.

1. Make a list of locations that could be good for you. For example, healthy snacks and food for local schools, snacks and food for offices and travel centers etc. The possibilities are great.

2. Look if the potential locations are good. Sometimes there might be a current vending service already. If there is, you should see if you could compete with a different concept. The most important thing is that you look if there is much customer traffic there. Big traffic means big sales opportunities.

3. Do a pitch to the owners of each location. You should point out that you are serious about this and that you have done your research. To make it professional you can include pictures of how the machines will look like. The location owners don't want machines that ruin the impression people get of the location. Some might want a commission for letting you set up your vending machines, but some won't. Therefore, you shouldn't speak about commissions unless you are approached about it. Also leave your business card before you leave, so they can contact you if they're interested.

In your case it seems that you're having a big difficulty regarding getting a lease, but you shouldn't give up. You should look at the opportunities to buy used machines. If this is the case, it's important that you make a deal with a machine service company, so you don't waste all your money on repairs. Bear in mind that there could be situations where you need someone handy who can fix the machines. Therefore this is important. At last, you should find a good wholesaler of food, snacks and beverages, so you could maximize your profit of every sale. Shop around and compare until you find a supplier that offers quality and good prices.

Good luck!