Progress

Leasing
June 19, 2024
5 mins

Vending Machine Suppliers: Why Offer Leasing Options?

Key take away points:

  • Why offer a leasing option on vending machines?
  • Benefits for you as a vending machine supplier
  • Benefits for your customers
  • Why partner with Bluestone to offer leasing
  • Get quick finance quotes for your customers today

At Bluestone we have been successfully partnering with vending machine suppliers – enabling them to offer their customers a leasing option – for many years.

Here we outline the many potential benefits that you could unlock – for your business and for your customers – by offering a vending machine leasing option through Bluestone.

If your company supplies UK businesses with vending machines and you are not currently offering your customers the option to lease, this blog is an essential read. In fact, even if you are offering a leasing option, but not through Bluestone, it’s still important to read on to discover how we might differ your current provider.

Curious how much a vending machine lease could cost your customer? Sign up to the Bluestone portal for a quick quote.

 

Why give customers the option to lease vending machines?

First things first, why offer a leasing option at all?

1. Overcome Cost Objections

Giving customers an alternative to paying upfront in full is an effective way to overcome their short-term budget limitations. Offering the option to spread the cost over time can boost your conversion rate and sift out prospects that are not ready to buy.

2. Increased Order Values

Asking customers to pay all at once in a lump sum can mean they are restricted in the amount they can spend on a vending machine; spreading the payments over time can increase how much customers can spend with you by as much as 30%.

3. Deeper Customer Relationships

Leasing a vending machine to a customer, rather than completing a one-off transaction, can deepen and extend the customer relationship. During the financing process you will usually liaise with the person/people responsible for signing the project off, strengthening your understanding of the customer and their future requirements.

4. Improved Customer Retention

Assuming that your service is good, and you keep in touch with customers as they approach the expiry of their lease agreement, it’s more likely they will choose to stay with you and renew the lease than if they paid cash as a one-off transaction.

5. Speedier Payments

Once the finance has been approved, your business will typically receive full payment within 72 hours of agreements which is great news for your cashflow.

Looking for a finance quote for your customer? Click here to access the Bluestone portal to start generating free finance quotes today.

Two women in office wear looking at a vending machine

 

What are the benefits of leasing options for your customers?

Of course, there’s no point offering leasing to your customers unless you understand how they will benefit from the arrangement. Paying via a lease will increase the cost of the vending machine overall due to the interest included in the lease agreement, so why would your customers choose to lease vending machines rather than buy with cash?

Immediate access to their vending machine

While the lease agreement is usually spread over 3-5 years(typically paid back on a monthly basis) so they avoid the large upfront cost, the customer will receive their vending machine as soon as the lease begins. Customers do not have to wait until they have enough working capital available to purchase the machine, and as they can spread the cost over time, the customer may be able to lease a higher quality model of machine than they would have done paying in cash.

Fixed payments

The lease payments will be fixed and unaffected by fluctuating interest rates, making it easy for your customers to budget and can also cover their maintenance/servicing costs, giving customers peace of mind that all costs are included. In addition, the extra income generated by the products bought from the vending machines can help to offset the lease payments.

Potential tax benefits

Leasing payments are treated as business expenses that qualify for tax relief throughout the agreement, which could reduce the customer’s overall tax bill.

Access the latest vending machine models

If the customer buys a vending machine outright, they have a depreciating asset that they will ultimately have to sell or dispose of. When the time comes that they want to replace or upgrade, they will be facing another capital outlay. However, when leasing, the customer can choose to upgrade at any stage during the agreement with some adjustments to the payment schedule.

Ownership options

In many cases, the lease can be structured so that at the end of the agreement the customer can take ownership of the vending machine for an additional fee, or they can return the machine to you and end the lease agreement.

 

Why offer leasing through Bluestone?

Quick finance quotes via self-serve portal

Our online portal provides your business with 24/7 access to quick finance quotes and enables you to submit your customers' applications with ease, tracking their progress from start to finish via your dashboard.

Sign up to the Bluestone portal to start generating finance quotes today.

Ethical and transparent service

We are transparent about all aspects of the finance application process and believe it is vital that you and your customers understand what’s being agreed to. We will only ever arrange finance that is affordable for your customer.

Dedicated account manager

When you become a Bluestone partner you will be assigned a dedicated account manager who will take the time to meet with you to understand how your business operates as well as your business’ unique challenges, goals, and customers.

“At Welcome Vending we pride ourselves on providing a tailored and personal service to our clients; one of the main reasons why we have continued to work Bluestone as our finance partner is that they have the same approach. They are always on hand to support us and our customers with their finance requirements – it’s like having an additional member of our team and offering customers the option to finance has definitely contributed to increased revenue.”

Gary Dinsdale, Welcome Vending Ltd

Prefer to talk to our team?

As an independent, award-winning team of finance professionals with more than 27 years of experience behind us, we take pride in our consultative approach when providing finance that maximises your business' potential.

If you would like to book a no-obligation call or meeting to discuss how partnering with Bluestone could deliver growth, complete the form below. Our team will be in touch ASAP.

BS.202406.01BL92

Complete the form below to send us a message and a member of our team will get back to you asap!

Thank you! Your submission has been received!
A member of our team will contact you asap!
Oops! Something went wrong while submitting the form.

By filling out this form, you agree to the terms laid out in our privacy policy

Subscribe

Get the latest in finance news delivered to your inbox.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

By filling out this form, you agree to the terms laid out in our privacy policy.

Our team are always here to help...

We know finance can be complex and often it's easier to talk things through. Drop us a message or give us a call 0330 135 8660 and we'll get back to you ASAP.

Get in touch
Explore how fast, affordable finance can help your organisation grow.
Finance for your organisation
Maximise your sales potential by offering your customers an alternative to paying with cash.
Finance for your customers
Top ↑