Vending machines can be highly profitable, earning hundreds of pounds a month with little effort. But buying one outright will cost you much more – thousands of pounds. And not everyone has that kind of money lying around. That’s why vending machine leasing has become popular in the United Kingdom. You get a high-quality vending machine without a large payment. It also gives you a chance to see how well a vending machine works for your business. This guide will explain why and teach you how to lease a vending machine – from start to finish. Let’s get started.

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Understanding Vending Machine Leasing in the UK

Leasing a vending machine means signing an agreement with a supplier to use their machines for a set amount of time and payment. Instead of paying a large amount upfront to buy the machine, you make regular payments over the lease period. So, leasing allows you to use the machine immediately while keeping your money for other needs.

The exact terms of the lease will depend on the leasing agreement. This agreement defines how long you will use the machine, how you will pay for it, and what happens at the end of the lease.

Business owners can typically use the machine from one to five years. Sometimes, it is possible to sign a lease for seven years.

At the end of this term, you usually get three options – to return the machine, upgrade to a newer model, or buy it outright. These are the so-called end-of-lease options.

Other sections you might see in a leasing agreement include:

  • Maintenance responsibilities
  • Insurance coverage
  • Rules of use
  • Termination conditions

Benefits of Leasing a Vending Machine

More and more U.K. business owners have decided to lease or rent a vending machine for a specific reason. Take a look at this handy overview of the benefits of vending machine leasing, and you will understand why.

Leasing

Purchasing

Cost

Leasing a vending machine can cost as little as £20 per week. This eliminates the barrier of entry for new businesses.

A new vending machine can cost up to £10,000.

Flexibility

You can upgrade your machine(s) as your business needs change.

You are stuck with the model you purchased.

Maintenance and Repairs

If you choose a reliable partner like Logic Vending, your leasing agreement will cover maintenance and repair services.

You are on your own. You must either learn how to maintain a vending machine or hire pros. If anything happens to it, you must find the repair services; there are no default ones to call.

Tax Benefits

The total cost of lease payments can be deducted as a business expense from your profits. This means you can receive tax relief throughout the lease. You’ll also reduce your overall tax bill.

You receive no ongoing tax deduction.

Payment Schedule

Leasing involves fixed monthly payments. This simplifies your budgeting and financial planning.

You must pay for the vending machine all at once.

Vending machines are a valuable investment. They can help you generate additional income and attract more customers. However, this is only possible with the right model. Logic Vending can help you find this model. The company offers a variety of modern machines. Logic Vending’s experts will guide you through this selection and help you make the right choice. This is great news for business owners who want to keep their vending machines. They will be satisfied for years to come.

Types of Vending Machines Available for Lease

There is more than one type of vending machine. Here are the two main ones.

Hot Beverage Vending Machines

Coffee vending machine rental is an extremely popular option. However, not all hot beverage vending machines serve just coffee. These machines can offer tea, hot chocolate, and even regular milk.

Beverage selection is not the only choice you will have to make. Hot beverage vending machines also come in different models, including table-top and bean-to-cup models. However, most business owners prefer floor-standing vending machines like the Neo Instant Hot Beverage Machine. This versatile machine can provide high-quality hot drinks in any setting.

Snack Vending Machines

When most people hear the word “snacks,” they instantly think of the classics – crisps, sweets, and chocolate. And you can absolutely stock only these snacks in your vending machine. However, there are also some healthier alternatives. So, your snack vending machine could offer protein bars and granola. Some models – like the Festival R290 – even allow you to offer fresh dishes and fruit.

Choosing the Right Vending Machine and Supplier

The first decision you should make is whether leasing a vending machine is right for your business. If yes, you have two more important choices ahead of you. The first is which vending machine model you will need. The second is who will supply that machine.

In both cases, it will help to determine your business needs first. Knowing how to use the machine will help you get the right one.

Let’s say you own a busy shopping centre. A snack vending machine will be a valuable addition to this space. It will take care of the employees putting in long hours and delight visitors. For them, it’s a convenient way to grab a quick bite. For you – added profit.

Getting a vending machine for your workplace is another good example. This addition might target your employees, clients, or visitors. The “target audience” should determine which vending machine type you get. For example, your client lounge and a bean-to-cup coffee machine are a match made in heaven. This might not be the case for a busy laboratory. Here, employees might appreciate a simple snack vending machine more. They can grab a quick bite and go right back to work.

However, there is more to a perfect vending machine than its selection of products. You should also be able to afford regular restocks of those products. The machine’s energy costs are another budget consideration. In short, you should ensure that the vending machine brings in money, not drains. A reliable supplier can help you with all these choices.

Choosing the Right Supplier

Vending machine rental and leasing can be confusing. But this is only if you work with the wrong supplier. With the right supplier, you will not even feel this process. That’s why you should look for a company with a great reputation and years of experience. This is especially important for business owners leasing a vending machine for the first time. In this regard, you will also benefit from strong technical support. Remember – vending machines might look fun and simple, but they are still machines. A lot of things can go wrong.

You should also look for a vending machine supplier that is 100% transparent. No surprises, no hidden fees. Your service agreement should demonstrate this transparency, giving you the much-needed peace of mind. With the best suppliers, this agreement will be detailed yet still clear. You should know everything down to the smallest detail, such as how long you must wait for maintenance.

Vending Machine Financing and Leasing Options

Leasing is not the only option for getting a vending machine without paying for it upfront. There is also financing. Let’s break both these options down.

Financing

Vending machine financing allows you to buy a machine using a business loan. You can make a down payment and repay the loan – plus interest – in fixed monthly instalments over a set period. At the end of the contract, you can own the machine. This is also one of the biggest advantages of financing. However, financing usually requires higher monthly payments. 

Lease

A long-term vending machine rental. That’s all leasing is. You pay a deposit and a fixed monthly fee to use the machine. Once your lease is up, you can choose to buy the machine. If you are unsatisfied with your current model, you can upgrade it or return the machine. This flexibility is why many business owners prefer leasing. But what really sweetens the deal is the lower monthly payment.

However, the cost of leasing a vending machine can become a downside in the long run. If you choose to extend your lease, the machine might cost more than it is worth.

Costs of Leasing a Vending Machine in the UK

A modern vending machine costs from £4,000 to £6,000. The most advanced models will cost much more – £10,000 to £15,000.  That’s why leasing is so popular. You can get the machine without paying anywhere near a four or five-figure price tag. How much you will pay monthly depends on several factors. Still, it will almost certainly stay within a two-figure range.

In fact, you can find smaller vending machines for as little as £15 to £20 per week. The free-standing ones will cost more – typically £35 to £40 per week.

This price range only refers to leasing a vending machine. You might pay more if you choose the fully managed vending services. With these services, your supplier covers all the essential costs – onsite maintenance, repairs, and customer support. So, this option will save you money in the long run. 

How to Apply for Vending Machine Leasing

Choose, pay, delivery. Those are all the steps you need when buying a vending machine. For leasing, you will have to add a few more.

Step 1: Research Different Suppliers

This guide taught you what to look for. Now, it is time to apply that knowledge. You should make a list of your top choices and compare their services. Additional services (e.g., maintenance) can be a tiebreaker if you are struggling.

Step 2: Apply for the Lease

You should submit your application once you decide which supplier to go with. This step involves sharing your business information and financial records.

Step 3: Wait for the Approval

Applying for a lease does not guarantee approval. The supplier will look at your documentation and make a final decision. Two things might help you with getting a green light here.

The first is your credit score. A higher score will significantly improve your chances.

The other thing that can help you is offering a down payment. Some suppliers already ask this payment. If yours does not, you should make the first move. This will show your commitment and potentially reduce your monthly costs later on. It is a win-win scenario.

Logic Vending: Your Trusted Partner for Vending Machine Leasing

Choosing the right vending machine supplier is the most important decision you will make.. But there is no need for a tiring search party.

Logic Vending is right here.

This reputable company has years of experience with vending machine hire. It is also ready to use all this experience to make your life – and business – easier.

Simply put, Logic Vending will help you every step of the way. The company offers numerous vending solutions and will help you find the right one. Once you do, Logic Vending will also help you with financing. And once the machine is finally yours, you can rely on the company’s incredible customer support for almost anything. This includes full on-site maintenance – a rare feat among U.K. vending machine suppliers.

The Best of Both Worlds

Leasing a vending machine is the perfect option for many U.K. business owners. They do not have to pay much money, yet they can use the vending machine immediately. This option is truly the best of both worlds. It is also flexible in every way possible, which makes it ideal for businesses across the U.K. Your business is no exception. So, now that you know how to rent vending machines, you can start looking for one for your business. As always, Logic Vending is here to help. Get in touch with us today to see for yourself.