Operating Lease For Vending Machines

If you are not willing to invest a large amount of money in your vending business, you have various options that can help in getting equipment at less costs and yield high returns. One such option is to use operating lease. It has the benefit of providing higher ROA (return on assets) as well as reducing the operator’s risk by enhancing flexibility in asset allocation to the highest revenue generating location.

Leasing vending equipment is the same as taking any other equipment on lease. You can find reliable vending machines from Planet Antares Inc.

The different advantages of taking vending machines on operating lease include the following:

• Induces flexibility of lease through lesser fixed cost purchase
• you won’t have to worry about equipment obsolescence
• various strategic requirements can be fulfilled with more capital available for channelisation
• the lease cost of vending machines is matched with the revenue stream of a contract

As compared to previous years, more and more products, component features and technological innovations are being introduced by vending machine manufacturers. These changes can lead to higher sales and profitability. However, this is only possible if you invest more money in acquisition and upgradation of equipment as well as current bestseller products. You also need to dispose off the obsolete and broken machinery.

In order to improve cash flow and the return on assets, you must ensure that one or both of the below occur:

• Reduction in investment base
• increase in profitability

An operating lease allows you to be successful at both these factors. It will be easier to increase ROA and obtain a sound balance between fixed and variable costs. When you take the machines on lease instead of purchasing it, your fixed costs will be reduced and the equipment will become a variable cost. On the other hand, the investment gets eliminated on the balance sheet.

This means that you will have greater flexibility in business. Also, you have the option of saving your funds and using them for better purposes. The headache of maintaining the equipment is not yours. You can carry out operations in a stress-free, efficient manner. This makes operating
lease a worthwhile investment.

The time period of an operating lease taken by an Antares vending operator may vary from one, three to five years. Once the time period for the lease expires, you have the option of re-leasing the equipment, upgrading to newer versions and technological components, buy the equipment at fair market value or even return the equipment. Your decision depends on the quality of the equipment, terms of lease and the value of the vending machines.

Most vending operators prefer to buy the equipment rather than taking it on lease or renting it. You must always weigh the benefits of renting the equipment as compared to purchasing of machines.