Vending machine financing

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    Chris Godfrey

    Page written by Chris Godfrey. Last reviewed on July 11, 2024. Next review due October 1, 2025.

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    Vending machines are the stores that never close. Open 24/7 for the sale of food, drinks, candy, toys, and more, they’re a fast and convenient way to buy the things we need. No wonder the US vending machine market was worth more than $15billion in 2022 and over 100million people buy from vending machines every single day.

    However, modern vending machines can cost anywhere from $3,000 to $5,000 per unit depending on how many bells and whistles they carry. This is enough to put a major dent in any income stream. But don’t be alarmed. There’s an answer to this problem: Vending machine financing. Pay for the equipment as you use the equipment. Give your vending machine business the machinery it needs without hurting cash flow.

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      What is vending machine financing?

      Vending machine financing – also known as equipment financing – is a type of business loan used to support the purchase of new or used vending machines. This type of financing gives business owners an alternative way to pay for one or more machines without putting strain on working capital by buying vending equipment with cash

      Top tip: If you’re thinking of starting your own vending machine business, get the inside scoop with Swoop’s All-Inclusive Guide to Starting a Vending Machine Business. Find out all you need to know before you take the plunge.

      How does vending machine financing work?

      Although vending machine finance may come with many different names, there are essentially only two ways to buy a vending machine if you’re not paying with cash:

      Finance (also known as a vending machine loan)

      Vending machine finance is a straightforward business loan. You make a down payment on the equipment and then pay off the balance of the purchase price, plus interest, with regular payments over a fixed term contract. The equipment acts as security for the loan. When the agreement comes to an end, the machine is paid for and yours to keep. 

      Advantages of a vending machine loan:

      • Own the equipment outright when the contract ends
      • Add the machinery as an asset to your balance sheet from date of purchase

      Disadvantages of vending machine loan:

      • Higher monthly payments because you are paying back the total equipment price


      A vending machine lease is really a long-term rental agreement. Because you are only financing some of the purchase price, leasing typically has lower monthly payments than a finance/loan. With a lease, you make a down payment and then pay a regular sum plus interest each month to use the equipment. At contract end you can either give the machine back to the lender, renew the lease at a different cost per month, or buy the vending machine for the fair market value – this is commonly known as a ‘balloon payment’. 

      Advantages of a vending machine lease

      • Lower monthly payments
      • Option to buy the machine or lease a newer unit at contract end can give you better financial flexibility and/or a more modern vending machine

      Disadvantages of a vending machine lease:

      • Balloon payment could be more than the machine is worth at contract end
      • Becomes a liability on your balance sheet

      Do I qualify for vending machine financing?

      Qualifying for vending machine financing is determined by three key factors:

      • Strength of your personal/business credit. Most lenders will want a good credit score along with ‘depth’ – which means a long history of paying your bills on time. 
      • The length of time your business has been operating. Longer history improves your chances of loan approval.
      • Down payment: It’s possible to get vending machine financing with no deposit, but generally, the more you offer to pay at signing, the better your chances of loan approval.

      Typically, you will need to provide a preliminary bill of sale for each machine you are seeking to buy or lease. The lender may also ask to see your business bank statements and other financial records. Note that some lenders may set an age limit on used machines. Additionally, it is unlikely that you will be able to get financing if the contract exceeds the estimated useful life of the equipment.

      Top tip: Even if you have bad credit, or have been turned down elsewhere, it may still be possible to get the vending machine financing you need. Call Swoop today to discuss your situation with a bad credit expert.

      How do I apply for vending machine financing?

      You should shop around for different financing offers before settling on a deal. You can do this by approaching banks, credit unions and online lenders one by one, or you can use the services of a loan marketplace that will introduce you to a choice of excavator financing deals from different lenders. Some marketplace platforms can also give you advice and help you with the application process. This can be especially useful for business owners who have never taken out a vending machine loan before. 

      What you’ll need:

      • Vending machine details including price and details of seller
      • Your business details and financial records as required
      • Preferred type of financing – loan or lease
      • Contract length request

      What credit score is needed for vending machine financing?

      Most lenders will want a minimum personal FICO score of +640, although, with some online lenders, it may be possible to get vending machine finance with a score in the mid-500s.

      Get started with Swoop

      Working with business finance experts can make all the difference when applying for vending machine financing. Contact Swoop to discuss your borrowing needs, get help with your application and compare top-quality vending machine financing from a choice of lenders. Get the essential equipment you need without putting strain on cash flow. Register with Swoop today.

      Written by

      Chris Godfrey

      Chris is a freelance copywriter and content creator. He has been active in the marketing, advertising, and publishing industries for more than twenty-five years. Writing for Wells Fargo Bank, Visa, Experian, Ebay, Flywire, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of US consumer and business finance.

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      At Swoop we want to make it easy for SMEs to understand the sometimes overwhelming world of business finance and insurance. Our goal is simple – to distill complex topics, unravel jargon, offer transparent and impartial information, and empower businesses to make smart financial decisions with confidence.

      Find out more about Swoop’s editorial principles by reading our editorial policy.



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