Finimpact

Best Vending Machine Financing

If you have plans to launch or grow a vending machine business, you need many vending machines to succeed. That’s where vending machine financing comes in. It 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

Once you install the vending machines, your job isn’t over. It’s your responsibility to keep each vending machine fully stocked and in good working order. You’ll also have to pay the owners of the buildings where you keep your machines rent or commission.

In general, you can expect to owe anywhere between 5% and 20% of your sales. As you can see, owning a vending machine business comes with plenty of expenses. While it can be lucrative and exciting, you will need to find a way to fund it.

Our Top Picks for Best Vending Machine Financing

forafinancial
  • Ideal for plenty of industries
  • Approval not solely credit based
  • Early payoff discounts
Credit Score
Min. Credit Score 550+
Loan Amount
Loan Amount $5K-$750K
Loan Repayment
Loan Repayment 4-15 months
credibly
  • Simple application process
  • As soon as same day funding
  • Open to high-risk industries
Credit Score
Min. Credit Score 500+
Loan Amount
Loan Amount $5K-$400K
Loan Repayment
Loan Repayment 6-18 months
fundera
  • Connections to multiple lenders
  • Competitive rates
  • Soft credit check
Credit Score
Min. Credit Score 550+
Loan Amount
Loan Amount $5K-$5M
Loan Repayment
Loan Repayment Up to 30 years

How to Choose the Best Vending Machine Financing Option

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 following before you sign on the dotted line. While ranking the best vending machine loans in 2022, our experts focused on these factors.

  • Loan Features: This refers to loan terms, loan amounts, and repayment schedules. Some lenders offer long terms, large amounts, and flexible repayment schedules while others have shorter terms, smaller amounts, and less repayment flexibility.
  • Application process: The application process can be quick and easy with fast approval and funding. Or it may take some time and require extensive documentation. Also, some applications come with a prequalification feature where you can check your loan offers without any impact to your credit.
  • Interest rates and fees: Minimum and maximum interest rates and fees vary greatly from lender to lender. In addition, there may be minimal fees or many fees like origination fees, late fees, and prepayment penalties.
  • 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: Customer support is about how easy it is to contact the lender. One lender might offer a live chat and a number of useful tools on their website. Another may only be available via phone during certain business hours.
  • 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 go above and offer perks like hardship assistance, mobile apps, and free credit score monitoring. These extras can make a loan product more appealing.

Best Vending Machine Loans - Full Overview

1.Fora Financial: Best for Bad Credit Loans

Fora Financial is a fintech lender that offers loans to all types of borrowers, including those with bad credit. As the owner of a vending machine business, you can benefit from its short term loans that go up $500,000 in funding. You don’t need collateral and can secure terms of 15-months.

Pros
Leninant requirements: Fora will look beyond your credit when reviewing your application.
Quick application: You can apply online within minutes.
Fast funding: Depending on when you apply, you may receive the funds in as little as 72 hours.
Cons
Rates might be high: If you don’t have the best credit, you can expect higher than average interest rates.
Fees: You might have to pay origination fees, late fees, and other fees in addition to interest.

To get a Fora short-term loan for your vending machine venture, you’ll need a credit score of at least 500, $12,000 minimum in earnings, and six months of business under your belt. Loan amounts range from $5,000 to $500,000 with terms between four and 15 months.

The Bottom Line

If you’re in need of fast capital so you can start or expand your vending machine business, Fora Financial is a great option. Even though you may have to pay fees, it will be difficult to find these high loan amounts and lenient qualifications elsewhere.

2. Credibly: Best for Working Capital Loans

Credibly is a Michigan-based online lender that provides working capital loans. These loans can help you cover the day-to-day expenses of your vending machine business, like inventory and maintenance. You can borrow up to $400,000 and repay your loan daily or weekly.

Pros
Simple application process: You can apply online quickly, in about 10 minutes.
Bad credit accepted: As long as you have a credit score above 500, you may get approved.
High borrowing limits: Credibly allows you to borrow up to $400,000, which should be enough to cover the working capital costs of your vending machine venture.
Cons
High interest rates: Since the starting factor rate is 1.15, you might pay more on interest.
Fees: You may be on the hook for additional fees, like origination fees.
Frequent payments: If you have cash flow issues, it can be tough to make the mandatory daily or weekly repayments.

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 1.15 and you can secure up to $400,000 in funding with repayment terms between 6 to 18 months. Compared to other lenders, these requirements are lenient.

The Bottom Line

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

Try Credibly

3. Fundera: Best for Equipment Financing

Fundera is an alternative lender that acts as both a direct lender and loan marketplace. You can use its equipment financing to buy new or used vending machines. Depending on your situation, you might be able to fund up to 100% of their cost.

Pros
Fast, straightforward application: You can apply for a loan through Fundera online, within minutes.
Competitive rates: If you have good credit, you may be able to secure low rates that start at 4%
Soft credit check: When Fundera connects you to lenders, they’ll perform a soft credit check, which won’t have any impact to your credit.
Cons
Unclear eligibility: Fundrea’s qualification requirements are vague so it can be difficult to plan ahead.
Potentially lengthy funding times: It may take a few weeks to receive loan funding.

Fundera’s equipment loans come with terms of 5 to 6 years and APRs between 4% and 40%. While you’ll need a credit score of at least 550, there are no minimum annual revenue or time in business requirements.

The Bottom Line

Since your vending machine business depends on vending machines, an equipment loan from Fundera is worth considering. You can finance up to 100% of their cost, regardless of your credit.

Try Fundera

4. Biz2Credit: Best for Term Loans

Biz2Credit provides term loans with minimal restrictions, meaning you can use them to cover just about any expense associated with your vending machine business. The entire process, from application to funding may only take 72 hours.

Pros
Fast funding: You can receive your cash within 72 hours of approval.
High borrowing limits: Biz2Credit term loans go up to $250,000 so you can use them to pay for large expenses.
Quick application: Once you fill out an application, you’ll find out what you’re eligible for in minutes.
Cons
Strict eligibility criteria: Biz2Credit does have rigorous requirements that may be difficult to meet.
Extra fees: Even though the fees aren’t clearly disclosed, you may have to pay between 1% and 6% in origination fees.

Biz2Credit’s term loans range from $25,000 to $250,000 with repayment terms between 12 and 36 months. APRs start at 8.99% and you’ll need a minimum credit score of 660, at least $250,000 in annual revenue, and 18 months in business.

The Bottom Line

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 $250,000 in funding and take a few years to pay it back.

Try Biz2Credit

5. BlueVine: Best for Lines of Credit

BlueVine is a financial technology company with lines of credit. With a line of credit, you can withdraw money any time up to your set credit limit. 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.

Pros
Leninant requirements: You might get approved for a BlueVine line of credit with a low credit score.
Competitive rates: Depending on your credit, you may lock in a competitive interest rate.
Fast funding: Upon approval, you can begin to withdraw funds right away.
Cons
Limited availability: BlueVine is not available in every state.
Short repayment terms: Since terms are between 6 to 12 months, your payment may be high.

Lines of credit from BlueVine range from $5,000 to $250,000 with a starting APR of 4.8%. BlueVine eligibility criteria includes a minimum credit score of 600, at least $120,000 in annual revenue, and a business history of six months or more.

The Bottom Line

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.

Try BlueVine

6.Fundbox: Best for Smaller Loans

Fundbox is an alternative lender that uses artificial intelligence. Its lines of credit and term loans start at $1,000. It can be a good fit, if you prefer a smaller loan for your vending machine business.

Pros
Fast approvals: Once you fill out Fundbox’s simple application, you can get approved for vending machine financing in minutes.
No extra fees: Aside from interest, you won’t have to pay fees to borrow money with Fundbox.
Convenient repayments: Fundbox lets you automatically debit payments from your bank account.
Cons
High rates: Compared to similar lenders, Fundbox charges higher interest rates.
Small maximum amount: You’ll only be able to borrow up to $150,000 with Fundbox.

Fundbox term loans and lines of credit range from $1,000 to $150,000 with APRs that start around 18% to 20%. For a chance at approval, you must have a credit score of at least 600, minimum annual revenue of $100,000, and a track record of six months in business or more.

The Bottom Line

If your situation doesn’t require you to borrow a lot of money for your vending machine business because you’re using personal savings, for example, Fundbox is a great place to go to for small loans.

Try FundBox

Best Vending Machine Business Loans - Features Comparisons

Company

Min. Credit Score

Min. Time in Business

Min. Annual Revenue

Loan Amount

Interest Rate

Fora Financial

500

Six months

$12,000

$5,000 - $500,000

Factor rate between 1.1 to 1.3

Credibly

500

Six months

$180,000

Depends on your credit score

Factor rate of 1.15

Fundera

550+

No minimum requirement

No minimum requirement

Depends on the loan type

Depends on the loan type

Biz2Credit

660

18 months

$250,000

Depends on your credit score

Starting from 8.99%

BlueVine

600

Six months

$120,000

$5,000 to $250,000

Starting from 4.8%

Fundbox

600

Six months

$100,000

$1,000-$150,000

18% to 20%

Use Personal Savings for Vending Machine Financing

If you have sufficient personal savings, you may want to allocate a portion of it to launch or grow your vending machine business. By doing so, you can meet your goals faster because you won’t have to wait for approval and funding from a lender. Also, you can save thousands of dollars on interest.

Of course, you should only use your personal savings to support your venture if your finances are in good shape. Make sure you have a solid emergency fund and don’t tap into your retirement funds as doing so can lead to hefty penalties and derail your retirement plans.

While it’s easy and cost-effective to use your personal savings for your vending machine business, it’s also very risky. If you’re not in a financial position to go this route, it’s better to secure vending machine financing elsewhere.

Vending Machine Supplier Financing

It is possible to lock in financing from vending machine suppliers. Whether you’re a new or existing customer, you may want to ask a vending machine distributor if they offer payment terms directly to their customers. In one meeting with a supplier, you can apply for financing, get approved, sign an agreement, and set up a payment plan. The process is similar to dealer financing when you buy a car.

Since each vending machine distributor will have their own requirements and terms, it’s important to do your research and make sure financing through them makes financial sense. Otherwise, you may pay more than you would if you chose a third-party lender.

Vencoa Vending Machines, a vending machine manufacturer provides financing through USI/Inland Financial Services. You can pay for your vending machines in 30 days after you receive them without incurring any interest charges. Another option is to make three equal payments within three months of delivery.

A & M Vending Machine Sales, a vending machine supplier also offers financing of up to $150,000. The company advertises an easy application process with same-day approvals, competitive rates, and flexible terms.

Other Types of Vending Machine Financing

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

  • SBA Loans: Partially guaranteed 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 apply for them.
  • 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 work a lot like personal credit cards. You can use them to cover the day-to-day expenses of your vending machine business, like inventory and marketing. Most business credit cards offer rewards like cash back, airline points, and gift cards.

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

A used machine can cost above $1,200, but a new one will be about 10 times as much.

Some other expenses to consider are as follows:

  • Restocking vehicle: If you have the machines in a very crowded area, daily refills should be necessary. Sure, you can rent a car to do the rounds and stock the machines, but buying a vehicle should be a top priority.
  • An employee: When you start out you may only have a few machines. You may thus be able to manage driving around and restocking your machines yourself. However, once you expand your business, you'll have to hire a few trustworthy employees.
  • 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 lot of money on inventory. Having vendor agreements will ease you into the business, and you'll be able to arrange periodic deliveries and could even get special prices.
  • 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 around 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.

As you can see, a vending machine business may incur many expenses and is only profitable if managed correctly.

How to use vending machine financing?

You can use vending machine financing for a variety of purposes including:

  • Vending Machines: To enjoy high profits, you’ll need to buy many vending machines and diversify where you place them.
  • Stocking Items: You won’t make any money off your vending machines unless you buy snacks, drinks, toiletries, and other items people will want to buy.
  • Restocking Vehicle: While you can rent a vehicle to carry your inventory and restock machines, a restocking vehicle is a long-term investment that can really pay off.
  • Employees: At first, you might manage your venture on your own. But as you grow, you may hire others to drive around and restock the machines for you.
  • Maintenance and Repairs: Even if you opt for the latest and greatest vending machines, they’ll need to be maintained and repaired eventually.
  • Permits: Chances are you’ll be required to cover the cost of permits to adhere to each city’s vending machine laws.
  • Insurance: Vending machines are easy to break, making insurance worthwhile.

How to Qualify for a vending machine loan?

Some vending machine loans are easier to qualify for than others. To increase your chances of success, follow these tips.

  • Monitor Your 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.
  • 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.
  • 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 be less likely to be disappointed.

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.

You may also wish to consider:

  • Your best-seller product for each location?
  • Why is it selling better than others?
  • Better selling options for another location?

These and other questions will help you keep track of your inventory and help you recognize new business development opportunities in the future.

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 toward the right direction, no matter where you are with your operation. Best of luck with your vending machine business!

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About the Author

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