SIEMENS FINANCIAL SERVICES UK
Financing the golden age of vending Kathryn Vassilissin, Vendor Finance, Siemens Financial Services UK
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ntroducing the latest AVA report, Stuart Coutts, Chair, highlights clear opportunities for growth: “smarter machines, richer product experiences and deeper integration into everyday life.”i Chief Executive, David Llewellyn, welcomes “a new golden
age of vending”, distinguished by “the experience we now offer. With machine connectivity, modern telematics and near-universal contactless payment, vending has shed the old frustrations and stepped confidently into the digital age.”ii The bar is high for vending businesses. However, their ambition may be constrained by the realities of balance sheets. New technologies entail significant investment at a time when the sector is also dealing with rising costs on all fronts, as well as regulatory change.
Customer story: Smart leasing SFS structured a leasing arrangement where the food technology company acts 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. This food technology company also utilises traditional
leasing for customers who want to take on responsibility for the equipment. By taking advantage of SFS’ advanced digital tools, including SieSmart (SFS’ front-end sales portal) and API functionalities, the company has streamlined the leasing process, offering swift credit decisions and simplifying transactions thanks to the tools’ auto-decisioning capabilities.
Across the industry, there is growing recognition of the need for financing models that help businesses continue investing without compromising liquidity. Smart, flexible finance solutions have become a strategic tool for both manufacturers and operators aiming to maintain and amplify their growth trajectories.
HOW FINANCE EMPOWERS VENDING OPERATORS Some vending operators use their own cash reserves to acquire the equipment they need to deliver service contracts to customers. This route keeps operators in the driving seat but ties up capital, restricts cash flows and curtails growth activities, not to mention the risk and administrative burden involved.
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