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NEW! Is Now the Right Time to Buy Gumball/Candy Machines for Passive Income?
Vending Millionaire? How Much Can I Make?
8 Ways to Pay For Your Vending Machines
Power Tips I Used to Locate 100 Machines in the last Year
Will I Need
Business Insurance?
Use your Home as a
Bank to Pay for Machines
How
Much Time will it take?
Optimum Route
Size
Figuring Your Cost Per Vend for Higher Profits
Quick Ways to Increase Sales, 1
Quick Ways to Increase Sales, 2
What Can I Sell in My Machines?
Hard to Vend Items
5 Things to think about Before Buying Machines
What Type Machines are Best?
What about Vending Locator Services?
Investing Your Tax Refund
Talking to Bankers
The Real Costs of Running a Vending Business
Grow the Person, Grow the Business
Great Business Reading
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Eight
Ways To Finance Your Vending Home Business
Sometimes the biggest barrier to entering the
vending business is securing startup money. This article
will give you ideas on where to find funding sources (even some
SELF-funding sources!)
ONE - Standard bank
financing . This is probably
the most difficult, yet not impossible with good credit and some
net worth. Banks typically do not look favorably at vending machine loans and consider
them risky because they are not considered a "fixed
asset".
TWO - Small Business Administration
Loan. Banks administer this loan and are more favorable to
this type than a standard bank loan because they are only liable for 15%
of what they loan (the government carries the other 85%). There are
a number of types of documentation required with this loan, but it is
certainly worth the trouble if you are willing to follow the
process.
THREE - Home Equity Loan. When
thinking of financing a home business or business startup, many people
traditionally think of getting a standard business loan. While this
may be appropriate, do not fail to consider using your home as a
bank. See my article "Using
your Home as a Bank"
for more on Home Equity
Loans.
FOUR - Family
Loan. In some cases, a family member may be favorable to
loaning you the money for starting your home-based business. While
there may be relationship risks to this setup, it needs to be considered
as an alternative to standard business financing. Some family
members would rather invest in your business vision and draw a little
interest rather than lending it to a bank at 2-3%.
FIVE -
Invest your tax return money. For many people, April 15th
is bonus time every year as they receive tax returns with earned income
credit and deductions for kids. Why not use this to slowly build
your vending business? See my
article about this here.
SIX - Sell items you don't
need. Yes,
this is probably the least popular, but how bad do you
need to create an income stream? What about downsizing your car and
investing the money in machines? Why not have a huge yard sale to
raise $500-$1000? What about downsizing your home and investing your
profits in the business? All of us have some money around us in our
life that we could put to work.
SEVEN - Lease
Purchasing. An option to getting into the vending business
is to make an offer to buy an established vending route by
lease-purchasing. You agree to lease the route from the seller with
an option to buy at the end of the lease period. You invest your
profits from the lease period into the purchase of the business or you can
continue leasing for the cash flow you are receiving. Remember to
get legal help in setting up any contractual agreement like
this.
EIGHT - Owner Financing. While not
always easy to find, don't let it stop you from asking the seller of a
vending route for it, especially if you have some money to put
down.
With any decision to borrow, you need to get a
professional evaluation from an accountant, investment advisor, etc.
Borrowing is a two-edged sword: it can cut for the good and for the
bad.
(C) Christmark Enterprises,
LLC.
Mark Evants. All rights reserved.
This
article for informational purposes only and not an encouragement to enter
into debt. Always seek the advice of a professional knowledgeable
about your specific situation.
SEE ALSO:
Financing Options
How to Talk to a
Banker
Investing Your Tax Refund/Stimulus
Check
Vending Millionaires? How Much Can You Make in
Vending?
5 Things to Think About Before Buying Vending
Machines
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