Finimpact
Updated on

Vending Machine Financing: Best Business Loan Options

If you have plans to launch or grow a vending machine business, you need many vending machines to succeed. Vending machine financing can help you cover the costs of the machines, as well as any other expenses you may face.

Best Vending Machine Financing for 2022
Anna Baluch
Written by:Anna Baluch
Freelance Copywriter

Reviewed by: Sarah Brooks, Personal Finance Writer and Editor

reliable

Many or all of the products featured here are from our partners who compensate us. This may affect which companies we write about and where the company appears on a page. However, any analyses, or reviews expressed in this article are those of the author’s alone, and have not been approved or endorsed by any partner.

Costs that come with operating a vending machine business include purchasing and installing the vending machines, keeping them stocked and in full working order, and paying rent or fees to the owners of the buildings where you keep your machines. In general, you can expect to owe anywhere between 5% and 20% of your vending machine profits to building owners.

While a vending machine business can be lucrative and exciting, you will need to find a way to fund it. Vending machine loans can help you get your business started or help cover gaps in revenue and other expenses that arise in this particular small business niche.

Vending Machine Financing: Best Business Loan Options

Top Picks for Best Vending Machine Financing

  • SMB Compass - Best for Loan Variety
  • Backd: Best for Cheapest Interest Rates
  • Lendzi: Best for Businesses With High Revenue
  • National Funding - Best For Loans with Fast Funding
  • Biz2Credit: Best for Term Loans for Vending Machines
  • Bluevine: Best for Vending Machine Lines of Credit
  • Credibly: Best for Vending Machine Working Capital Loans

When it comes to vending machine financing, there are a variety of options available to you. Since each one is unique, it’s important to consider the terms, rates and fees of each lender. Our experts ranked the best business loans for vending machines with a focus on the potential advantages and downsides and what makes each lender a good option. We also provide a rating methodology you can use to select the best option for your needs. 

 

Vending Machine Financing: Overview of The Best Options

Best Overall
SMB Compass
4.5

SMB Compass: Best for Loan Variety

4.5
Interest Rates
Starting at 7.99%
Loan Amounts
$10K - $10 million
Min. Monthly Revenue
$20,000
Key Features
  • Loans up to $10 million
  • Min. credit score: can go as low as 550 for certain loans
  • Min. time in business: 1+ years in business, no startups
  • Funding times: 5 to 7 days for term loans and 24 - 48 hours for line of credit
  • Flexible terms: 2 – 10 years for term loans
  • Interest Rates: starting at 8.99% for term loans
  • Applying does not impact credit score
  • Nine loan products to choose from
Pros & Cons
  • Low, competitive rates
  • Large loan amounts
  • Loan terms up to 25 years
  • Excellent customer service
  • Poor credit not accepted
  • Not available in all states
  • Must be in business at least one year
  • High revenue requirements
Overview

SMB Compass has nine different types of loans, many of which can be used for vending machine financing. The most common options are equipment financing, business lines of credit, and business term loans. To qualify, you’ll need a minimum credit score of 650 (600 for equipment financing), $20,000 or more in monthly revenue, and a business history of at least one year. If you aren’t sure if you qualify or need help choosing a loan, a representative can be reached M-F to help guide you through the process. If you do apply and get approved, your funds could be in your account within 1-2 business days.

Main Features

SMB Compass offers nine different types of small business loans to borrowers, including those who need vending machine financing. Their mission is to make loans more accessible to small business borrowers by providing cost-effective and flexible lending solutions. SMB Compass business loans range from $10,000 to $10 million with terms up to 25 years. Rates start at 7.99% for qualified borrowers. The lender has currently provided more than 1,200 U.S. businesses with more than $250 million in financing. To apply, simply fill out their easy online application. It takes just a few minutes and will not impact your credit score. If approved, funding can be dispersed within 24 hours.

SMB Compass has stricter qualifications, but their loans come with fast funding times, competitive rates, flexible repayment terms, and large loan amounts. If you need vending machine financing and have decent credit, SMB Compass could be an excellent choice. Contact them today or fill out their easy online application to get started!
Backd business loans
4.5

Backd: Best for Cheapest Interest Rates

4.5
Factor Rate
Starting at 1.10
Loan Amounts
Up to $2 million
Min. Annual Revenue
$200,000
Key Features
  • Borrow up to $2 million
  • Min. Credit Score: 640
  • Min. Time in Business: 2 years
  • Industry best factor rate for MCA - as low as 1.10
  • APR for the Line of credit product starts at 35%
  • Flexible repayment terms up to 16 months
  • Get funding in as little as 24 hours
  • Check your rate with a soft credit pull
Pros & Cons
  • Easy online application
  • No collateral required
  • Fast funding times
  • Large loan amounts
  • Must be in business at least one year
  • Not all industries qualify
  • Rates and fees not disclosed until application
Overview

Backd was founded in 2018 to give more small businesses access to funding. If you’ve been denied elsewhere, Backd is worth looking into. So far, they’ve funded more than $1 billion to over 10,000 small businesses. The application takes just a few minutes to fill out and you’ll receive a lending decision almost instantly.

 

Main Features

Backd offers two lending products - a working capital loan from $10,000 to $2 million and a business line of credit from $10,000 to $750,000. If you need to continually upgrade vending machine equipment, a business line of credit may be your best option. Neither loan requires collateral, and the working capital loan comes with flexible payment options. To qualify, you need to be in business for at least two years, have $300,000 or more in annual revenues, and 640+ FICO score.

Backd wants to help your business succeed and if they can, they will. If you’ve been denied elsewhere for a vending machine loan, it’s worth giving Backd the chance to get you the funding you need to grow or expand your vending machine business.
Lendzi logo
4.5

Lendzi: Best for Businesses With High Revenue

4.5
Factor Rate
Starting at 1.10
Loan Amounts
Up to $4 million
Min. Annual Revenue
$180,000
Key Features
  • Borrow up to $4 million in working capital
  • Min. credit score: at least 500
  • Min. time in business: 6 months
  • Equipment financing up to $2 million
  • Business line of credit up to $250,000
  • See your options without hurting your credit
  • Flexible terms: 3 to 15 months
  • Excellent customer reviews on independent review sites
  • Get funding in as little as 24 hours
Pros & Cons
  • Simple application
  • Applying does not impact credit score
  • Bad credit accepted
  • Fast funding times
  • Excellent customer service
  • Phone calls may be required
  • High annual income requirements
  • Startups may not qualify
Overview

Lendzi caters to vending machine businesses with high revenue and have been denied elsewhere. In addition, they partner with more than 75 other lenders, which greatly increases your odds of getting a loan. Lendzi also ranks excellent in customer satisfaction, with more than 2,000 5-star reviews on trusted websites to prove it. Whether you have poor credit, need someone to walk you through the loan process, or are looking for the best interest rates, Lendzi can help.

 

Main Features

Lendzi offers equipment financing loans up to $2 million. Terms range from 12 to 84 months and rates start at just 3.49%. To qualify, you need a credit score of 550, six months of business history, and $180,000 in annual revenue. Lendzi also offers working capital loans up to $400,000 if you need funding to cover gaps in revenue, purchase inventory, or pay for operating expenses. The credit requirement for a working capital loan is just 500, but Lendzi also recommends a business history of six months and $180,000 in annual revenue. Lendzi offers many other loan products, including short- and long-term business loans, SBA loans, business lines of credit, and merchant cash advances. After you submit your application, a representative will be in touch to discuss your business and review your loan options. 

Running a vending machine business can be costly, and having poor credit shouldn’t stand in your way of getting a loan. Lendzi will work with you throughout the entire loan process, from application to funding, to ensure you get the money you need to keep your business afloat.
nationalfunding
4.1

National Funding - Best For Loans with Fast Funding

4.1
Factor Rate
Starting at 1.10
Loan Amounts
Up to $500K
Min. Annual Revenue
$250,000
Key Features
  • Min. Time in Business: 6 months
  • Min. Credit Score 600
  • Borrow up to $500,000 in working capital
  • Equipment financing up to $150,000
  • Factor rate From 1.10
  • Fast funding
  • Early payment discounts
  • Equipment financing repayment 2-5 years
  • Working capital repayment 4 months - 2 years
Pros & Cons
  • Fast funding time
  • High reviews and rankings
  • No risk to apply
  • Early payment discounts
  • Origination fee
  • High annual revenue requirement
  • Personal guarantee required
Overview

National Funding offers short-term working capital loans you can get within 24 hours of approval. Depending on your credit and other factors, you may borrow up to $250,000 to cover the costs of payroll, inventory, taxes, and anything else your vending machine business needs to run smoothly. National Funding also offers an early repayment discount to borrowers who pay off their loan early.

 

Main Features

National Funding’s short-term working capital business loans range from $5,000 to $500,000 with repayment terms between four months and two years. The pay rate starts at 1.10. To be considered, you’ll need a minimum credit score of 600, a business track record of at least six months, and $250,000 or more in annual revenue.

National Funding might make sense if you’re an established vending machine business and need some cash to pay for day-to-day expenses. This is particularly true if you’re confident you can repay your loan within 100 days and lock in an early repayment discount.
biz2credit review
4

Biz2Credit: Best for Term Loans for Vending Machines

4
Interest rates
Starting at 7.99%
Loan Amounts
$25K to $500K
Min. Annual Revenue
$250,000
Key Features
  • Borrow up to $2 million
  • Term loans up to $500,000
  • Term loan interest rate starts at 7.99%
  • Loan Repayment 12-36 months terms
  • Variable APR depending on the applicant
  • Funding in 72 hours
  • Soft credit pull
Pros & Cons
  • Fast funding
  • High borrowing limits
  • Quick application
  • Strict eligibility criteria
  • Extra fees
Overview

Biz2Credit is not a direct lender, but they will connect you to a lender that will match specifically what you are looking for. We recommend a term loan from Biz2Credit, as they come with minimal restrictions associated with your vending machine business. The entire process, from application to funding, can take as little as 72 hours. Applying will not affect your credit score.

 

Main Features

Biz2Credit’s term loans range from $25,000 to $500,000 with repayment terms between 12 and 36 months. Rates start at 7.99% and you’ll need a minimum credit score of 660, at least $250,000 in annual revenue, and 18 months in business.

If you have good credit, high revenue, and have been in business for a while, Biz2Credit’s term loans may be ideal. You may get approved for up to $500,000 in funding and take a few years to pay it back.
bluevine
4

Bluevine: Best for Vending Machine Lines of Credit

4
Min. Annual Revenue
$120,000
Min. Credit Score
625+
Min. Time in Business
6 months
Key Features
  • Funding up to $250,000
  • Interest rates as low as 4.8%
  • Loan Repayment 6-12 months terms
  • Quick and simple application
Pros & Cons
  • Leninant requirements
  • Competitive rates
  • Fast funding
  • Excellent customer service
  • Not available in every state
  • Short repayment terms
  • Rates can be high for lower credit scores
Overview

Bluevine is a financial technology company offering business lines of credit to small businesses up to $250,000. With a line of credit, you can withdraw money any time up to your set credit limit. Once you pay it back, you can use it again, and you only pay interest on the amounts you use. If you’re unsure of exactly how much funding you need for your vending machine business or want to prevent cash flow issues, it can be a good option.

 

Main Features

Lines of credit from Bluevine range from $5,000 to $250,000 with rates starting at just 4.8%. Terms are between six and 12 months, and payments are made weekly or monthly. Bluevine eligibility criteria includes a minimum credit score of 625, at least $120,000 in annual revenue, and a business history of six months or more.

A Bluevine line of credit is a solid pick if you’re on the lookout for flexible vending machine financing. This is especially true if you have good credit and can qualify for a low interest rate.
credibly
4

Credibly: Best for Vending Machine Working Capital Loans

4
Interest Rate
8-25%
Loan Amounts
Up $250K
Min. Annual Revenue
$180,000
Key Features
  • Min. Credit Score: 550+
  • Min. Time in Business: 6 months
  • Borrow up to Up to $250,000 in term loans
  • Borrow up to $400,000 in working capital
  • Term loan rates range between 8-25%
  • Working capital factor rate starts at 1.09
  • Simple application process
  • As soon as same day funding
  • Open to high-risk industries
Pros & Cons
  • Simple application process
  • Bad credit accepted
  • Funding same day as loan approval
  • High borrowing limits
  • High interest rates
  • Additional fees charged
  • Frequent payments
Overview

Credibly is a Michigan-based online lender that provides working capital loans, business lines of credit, long-term loans, and SBA loans. Working capital loans up to $400,000 can help you cover the day-to-day expenses of your vending machine business, such as inventory and maintenance. The application takes just a few minutes and you can be funded on the same day you’re approved.

 

Main  Features

To qualify for a working capital loan, Credibly requires you to have a minimum credit score of 500, $180,000 in annual revenue, and a business history of at least six months. The factor rate starts at 1.09 and you can secure up to $400,000 in funding with repayment terms between six and 18 months. Compared to other lenders, these requirements are lenient, making Credibly our top choice for bad credit vending machine loans.

For a large working capital loan with generous repayment terms, Credibly is a solid choice. You can apply online and get approved quickly, even if you have bad credit.

Main Features of the Best Vending Machine Loans

SMB Compass4.5
Backd4.5
Lendzi4.5
National Funding4.1
Biz2Credit4
Bluevine4
Credibly4
  • Min. Credit Score - 650
  • Min. Time in Business - 12 months
  • Min. Annual Revenue - $240,000
  • Loan Amount - $10,000 to $10 million
  • Interest Rate - start at 7.99% for qualified borrowers

How To Choose the Best Vending Machine Financing

  • Loan Features: We looked at loan terms, loan amounts, and repayment schedules.
  • Application process: Ideally, we want the application process to be quick and easy with fast approval and funding.
  • Interest rates and fees: Minimum and maximum interest rates and fees vary greatly from lender to lender. In addition, there may be origination fees, late fees, and prepayment penalties. This was a top priority when ranking loans for vending machines.
  • Qualification process: While some lenders require good credit, sufficient annual revenue, and at least a few years in business, others are more lenient and willing to lend to startups and newer businesses.
  • Customer support: We looked at customer support options, including hours, availability, and methods of contact.
  • Online user reviews: Third-party reviews on sites like TrustPilot and Better Business Bureau (BBB) can speak volumes about lenders’ customer service and their reputation among borrowers.
  • Perks and Bonuses: It’s not uncommon for some lenders to offer perks such as hardship assistance, mobile apps, and free credit score monitoring. These extras can make a loan product more appealing.

 

How Much Does it Cost to Open a Vending Machine Business?

A used machine typically will cost you between $1,000 and $3,000, and a new one can be well over $10,000. If you’re planning on owning more than one, these initial costs can add up.

Other vending machine expenses include:

  • Restocking vehicle: You’ll need access to a vehicle in order to restock your vending machines. In high-traffic areas, you may need to restock daily. Having a reliable form of transportation should be a top priority.
  • Employees: At first you may be able to handle the vending machine business on your own; but as you grow and expand, you may need to hire additional employees to help with keeping the machines fully stocked.
  • Technical maintenance: Vending machines, especially high-tech ones, are prone to technical issues. Periodic maintenance is important and often costly.
  • Inventory: You will likely spend a good amount of money on inventory. Having vendor agreements will ease you into the business, and you'll be able to arrange periodic deliveries and possibly receive discounts.
  • Permits and taxes: Each city has its own laws regarding vending machines and the permits you need to have. This bureaucratic layer will probably cost you a few hundred dollars a year, depending on your location and the number of vending machines you have. You should also consider the taxes your business will need to pay.
  • Insurance: Vending machines are easy to break - that's why we believe that having insurance on all items is a must. Depending on how many machines you own, this expense might cost you up to a few thousand dollars each year.

Bottom line: starting a vending machine business could cost you as little as a few thousand dollars up to tens of thousands of dollars, depending on how many vending machines you have, whether or not you hire employees right away, what type of vehicle you purchase, and more. A vending machine loan can help cover these expenses while you focus on getting your business up and running.

How to Qualify for a Vending Machine Loan

To qualify for a vending machine loan, you’ll want to have a credit score above 500, be in business for at least six months, and have an annual revenue of $100,000 or more, on average. To increase your chances of approval and land better rates, we recommend the following tips:

  • Monitor credit scores: Lenders will look at your credit when they review your application. The higher your credit score, the more likely you are to get approved with low rates and favorable terms. Make sure you know where you stand credit-wise before you apply. Here’s how you can build your business credit.
  • Cultivate lender relationships: Ideally, you’d connect to lenders that pique your interest months before you pursue their loans. Personal relationships can go a long way, especially if your credit is shaky.
  • Choose secured loans: Since secured loans are tied to collateral or a valuable asset that you own, lenders tend to be more lenient. If your credit isn’t the best, you may want to look for secured options. Equipment financing is a type of secured loan that uses your vending machine as collateral.
  • Craft a thoughtful business plan: A business plan outlines who you are, what your goals are, and why you need vending machine financing. Be sure it’s written well, as most lenders will ask to see it.
  • Compare lenders: There are countless lenders that offer vending machine loans. If you compare the various solutions at your disposal and only apply for the ones with requirements you meet, you’ll increase your chances of approval.

 

Other Types of Vending Machine Financing

You may want to consider other types of vending machine financing, including:

  • SBA loans: Backed by the U.S. Small Business Administration, SBA loans offer low rates and lengthy repayment terms of up to 25 years. You will, however, need good credit and at least $100,000 in annual revenue to qualify.
  • Microloans: If you need a small loan of up to $50,000, a microloan can meet your needs, especially if you’re new to the vending machine business and have minimal to no credit history. Offered by both nonprofits and for profits, microloans usually come with mentoring and other resources for startups.
  • Business credit cards: Business credit cards are similar to personal credit cards. You can use them to cover the day-to-day expenses of your vending machine business, such as inventory and marketing. Most business credit cards offer rewards like cash back, airline points, and gift cards.
  • Personal savings account: Start-up costs for a vending machine business to tend to fall on the low side compared to other small businesses. If you can swing it, using your personal savings account to get the business up and running is something worth considering.
  • Vending machine supplier financing: Vending machine distributors oftentimes offer payment plans and financing options directly to customers. It’s worth looking into this option and comparing rates and fees to other lenders to ensure you get the best deal.

 

How to Recognize New Vending Machine Business Development Opportunities

Successful vending machine business owners know that statistics are essential. You should be able to present your vending machine business in numbers.

Some questions to consider are:

  • Which of my vending machines are performing the best?
  • What factors are influencing their top performance?
  • How can I replicate the success of these machines in other locations?

In addition, let's say that the machines you have located next to schools perform better than the ones you have placed next to bus stops. It would be logical to dig deeper so that you can replicate the success of your school-based vending machines. Or, you can decide to specialize in one location only.

 

Pros and Cons of Running a Vending Machine Business

There are pros and cons to any type of small business. Let’s take a look at the pros and cons of running a vending machine business.

Pros

  • Low startup costs: A vending machine business can cost as little as just a few thousand to get started.
  • Minimal inventory required: You won’t need office space, warehouses, or extensive inventory to get going. You simply need a vending machine and items to stock it.
  • Low risk: If you end up not wanting to run the business for more than a few months, you can simply sell the vending machine(s) you purchased and move on.
  • Flexible schedule: You can stock the vending machine at any time and on any day of the week, allowing flexibility in your schedule to work another job or run another small business.

Cons

  • Low profit margins: You won’t become a millionaire operating vending machines, but you can definitely generate a few hundred a month in profit per machine.
  • Not completely hands-off: Vending machines are not a “set it and forget it” type of business. You’ll need to monitor which locations do the best, which products sell the most, and how often you need to restock your machines.
  • Difficulty securing prime locations: Your biggest challenge may be finding the best location for your machine, as many areas are already saturated.

 

Conclusion

The vending machine business brings in billions of dollars every year. To tap into this lucrative market or expand the venture you already have, vending machine financing is ideal. It can provide you with the capital you need to operate efficiently and maximize your profits.

Check out the best vending machine loans our experts have recommended. Our research can steer you in the right direction, no matter where you are with your operation.

 

*The required FICO score may be higher based on your relationship with American Express, credit history, and other factors.

Anna Baluch

Written by: Anna Baluch

Freelance Copywriter

Freelance copywriter who enjoys writing for large publications as well as startups, small to medium sized businesses. Anna Baluch is a personal finance writer with over 7 years of experience covering topics related to mortgages, debt management, student loans, personal loans, and more.

More about me
Sarah Brooks Personal Finance Writer and Editor

Reviewed by: Sarah Brooks

Personal Finance Writer and Editor

Sarah Brooks is a personal finance writer and editor with more than 10 years of experience. She specializes in personal and business loans, mortgages, auto loans, and credit cards.

More about me

Related Loan Picks

Show More