Why coffee machine financing might not be best for your business
Coffee machine financing is possibly not the best choice for your business and we will quickly outline in this article why that might be the case.
- Coffee machine financing essentially means you’re buying a coffee machine on credit and you pay more for it over the long-run.
Yes, it has advantages and there are times when you need to do that (ie when you can’t afford a coffee machine) but, the amount you pay over three or four or five year time period is so significant and should be properly considered.
- Some businesses use coffee machine finance to “dip their toes”, because they are not sure which machine to go for.
There is no more protection or there is no less risk going into a coffee machine financing route than it is buying a coffee machine outright. As soon as you sign the purchase document, you’re in it; whether it’s three years, four years, or five years. During that time you ca not change coffee machines and you can not give the coffee machine back to the wholesaler. You have to pay for the coffee machine now or at some stage and there is no going back.
What’s the alternative to coffee machine financing?
A better alternative to financing a coffee machine is choosing a coffee machine rental option.
Here are x3 reasons why renting a coffee machine is a good option over financing:-
- A coffee machine rental option gives you flexibility; you can change machines at any stage and simply give your machine back.
- Often coffee machine rental terms are a lot shorter than financing terms. If you’re not sure on what is the best coffee machine for your business definitely go the rental route and feel your way as you go.
- Financing is usually done by an external company other than the coffee machine wholesale company that you are buying your machine from. What that means is that the financing amount you pay every single month is there just to give you access to the machine. It doesn’t give you maintenance and it doesn’t give you servicing. All those typical pros that come with usual rental are not there in financing.
Coffee machine financing equals buying a machine for more amount of money paying as early.
In conclusion. if you can, buy a coffee machine or rent a coffee machine rather than going the coffee machine financing route.