FINANCE & LEASING
Help at hand in an evolving world of vending
Two experts on vending finance offer some insight into how vending businesses can prepare for the future as they face new economic challenges in a changing world of work…
KEVIN REED, TOWER LEASING The vending industry has faced numerous challenges in recent years, including skyrocketing energy bills, the cost-of-living crisis and rising interest rates. Factors that have all contributed to a bleak economic outlook, which could last for some time yet. Fortunately, leasing and finance specialists, such as Tower Leasing, are equipped with a range of solutions to help vending suppliers and operators maintain healthy cash reserves, while fuelling their sales and growth. One of the key ways we supports clients, is by providing finance options on their behalf. Enabling customers to spread the cost of machines over several years means that they can acquire a larger number of units immediately, without depleting their cash reserves. This not only results in higher sales for operators but can drastically improve their own cash flow too, as all payments are made by us within hours, rather than the typical 30-day terms. Tower is also committed to helping vending businesses to prepare for the future by providing them with a wide range of alternative funding solutions, such as business loans, property finance, asset finance and vehicle funding. These products can all be easily accessed by suppliers and operators and enable them to invest in new premises as well as energy efficient equipment such as LED lighting and electric delivery vehicles, which help to improve the efficiency of their business and have a positive effect on the bottom line too. Best of all, rentals are fixed at today’s cost of funds, so unlike rent, rates, and utilities, they will not rise over the term of the agreement and can give businesses stability during inflationary market conditions.
As primarily a funder with the support of brokerage facilities and
an extensive panel of lenders, we has exceptional flexibility in terms of their credit criteria and can support suppliers and operators
in ways that traditional high street lenders simply cannot. We’re seeing a huge number of businesses turning to alternative finance solutions to aid their cash flow, and despite the current economic conditions, we’re experiencing some of the highest acceptance rates in our history. We’re more committed than ever to helping suppliers overcome the current challenges and will do whatever we can to ensure this amazing sector continues to thrive”.
KATHRYN VASSILISSIN, SIEMENS FINANCIAL SERVICES (SFS) UK “When looking at the challenges facing vending operators, what’s clear to me is that those operators offering finance at point-of-sale will be best-placed to help the end-customer invest in the latest tech without jeopardising working capital. Integrated financial solutions can make investment affordable which is a crucial differentiator at this time. There are also some great opportunities in the sector right now.
Take hybrid working as one example, which can actually give back a lot of control to end-customers... We’ve learned that first hand at our own head office in Stoke Poges. By rethinking our catering facilities and installing a micro market. And this is true from the finance perspective as well – instead of simply funding investment in a single machine, we now offer financing for the whole arrangement, which can include cabinetry, telemetry, and refrigeration. This flexibility allows us to work with vending operators to deliver comprehensive, tailored solutions. Cashflow often represents a challenge for investment – particularly
as industries continue recovery in the post-pandemic period. Rising interest rates and volatile markets mean businesses want to preserve working capital. Working with a specialist financier like SFS lets you offer customers smart finance solutions to match their cash flow needs, paying for equipment in manageable instalments instead of outright. It’s possible to fold in aspects like maintenance and upgrades so, as the technology evolves, end-customers can make the most of their machines. We offer a complete range of digital tools so that vending
operators can be in control of their finance and leasing, instant decisions, electronic documentation and signing all at the touch of a button, seamless. Simply put, the world of work is changing and by working with specialist finance partners, vending operators can lead that change.”
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