SIEMENS Fuelling growth with smart finance
Kathryn Vassilissin, Vendor Finance, Siemens Financial Services UK, shares a customer example to demonstrate how partnering with a knowledgeable and specialist financier can improve growth prospects for vending machine operators.
T
he vending machine has had a makeover. To stay competitive, today’s vending operators need to stay on top of the latest technological innovations and customers’ evolving palates and
preferences, while also creatively spotting new areas for expansion (one recent example is a vending machine for feeding ducks appropriate food such as barley and oats, rather than old bread1 Of course, investing in innovation and adapting to offer a broader
).
range of options comes at a cost. As an experienced and specialist financier, Siemens Financial Services (SFS) offers its partners flexible financing arrangements that suit their specific needs. To show how this works in practice, here’s how we helped one
leading provider of food technology solutions, who needed a reliable finance partner to support its growth ambitions.
RELEASING INVESTMENT The company in question was looking to further expand its capabilities and services across workplaces and public spaces. Its service offerings range from traditional vending and coffee making environments to innovative solutions like micro-markets and smart, cashless payment systems. The company usually uses its own cash reserves to purchase the equipment it needs to deliver service contracts to customers. That means a high proportion of its free cash is tied up in equipment financing for existing business, and it cannot easily grasp new business development opportunities – a familiar conundrum for many others in the sector. The company approached Siemens Financial Services (SFS) to
get an idea of how it could use financing to ramp up growth plans. Since we have prior experience and expertise in this sector, we can provide tailored finance solutions for UK vending companies. In this case, the SFS team suggested a back-to-back finance facility, enabling the company to draw down financing as needed.
BACK-TO-BACK FINANCING What do we mean by back-to-back financing? A leasing arrangement from SFS was structured with the food technology company acting
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vendinginternational-online.com
FINANCE AT YOUR FINGERTIPS This food technology company also utilises traditional leasing . Where, the company takes advantage of SFS’ advanced digital tools, including SieSmart (SFS’ front-end sales portal) and API functionalities. These platforms streamline the leasing process, offering swift credit decisions and simplifying transactions thanks to auto-decisioning capabilities. The digital integration has significantly improved the efficiency
of the company’s operations, allowing most leasing deals to be processed seamlessly. That doesn’t mean everything has to be digital. For larger deals requiring verbal approval, the dedicated support from SFS’s Account Manager and customer service team ensures that the vending supplier receives prompt and personalised assistance.
ENABLING EXPANSION & STREAMLINING SALES Through its partnership with SFS, the company is leveraging flexible financing to expand, while also improving the speed and efficiency of its sales process through SFS’ digital tools. This example draws on a real-world arrangement that is typical
of the service that Siemens Financial Services (SFS) regularly offers vending, catering and facilities management businesses. You can see a range of case studies and download this finance example at If you’d like to know how the team can tailor a solution to meet your investment needs or strategic goals, email the team at vendor.sfs@
siemens.com or call 0161 446 5056.
Download the finance example here:
https://www.siemens.com/uk/en/ products/financing/customer-stories/
vending-finance-example.html
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https://www.bbc.co.uk/news/articles/cn8rjeyexxdo
as the obligor (i.e. the company has a direct arrangement,), allowing the company to deliver service contracts to third-party customers without tying up precious capital. The arrangement facilitated upfront funding for equipment acquisition, with quarterly repayment, ensuring a healthy cash flow and enabling further investment. This aligns the company’s outgoing payments much more closely with incoming revenue streams. Allowing the company to inject cash back into the business and pursue wider opportunities.
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