How To Finance Your Ice Vending Machine Investment
Whether you only provide for yourself or you have a whole family who relies on you financially, having a second source of income is never a bad idea. Earning some extra cash is one of the main reasons why people get into the ice vending gig. However, the initial investment and recurring payments for owning an ice machine can be quite pricey.
Fortunately, if you get an outdoor ice vending machine from Everest Ice and Water Systems, you’ll never need to pay us another dime after purchasing your machine. However, you’ll still need to find the money for that initial investment. Lucky for you, we also come baring tips on how to finance your ice vending machine investment. That way, you can start on the right foot.
Check Your Savings Account
It’s no secret that the machines used to create and dispense ice and water aren’t cheap, even though they’ll pay for themselves in no time. Despite the fact that the upfront cost might be a bit high, you should start this financial journey by checking your savings account.
We would like to note that draining your bank account to buy an ice machine is never a good idea, but depending on how much you have, buying one of these outright might be a possibility. If you simply don’t have the disposable funds to do such a thing, that’s OK. You can pull some money out of your savings as a down payment, then look into the following tips to see what else you can do to cover additional costs.
Think About Financing
One of the first options you should consider for paying for your ice vending machine is financing. This option will keep you from having to pull out a large loan that you’ll need to pay interest on as you go. While financing options usually have interest rates as well, they normally have bonuses that make them more worthwhile than loans.
Some don’t charge interest for a period of time, while others offer to cover other expenses that will be tied up in your purchase. Regardless of what the benefits are, they’re usually worthwhile to the person looking to buy the ice machine. We even offer a financing plan through LEAF that our customers can use for themselves.
Look Into Business Loans
Even though financing is usually the better option, there’s nothing wrong with taking out a business loan, either. You can usually get these through your bank or another trusted loan company.
In order to convince them to loan you the money, though, you’ll need to present them with a business plan that explains your goals. As long as you present them with a clear plan, proof that you’re financially responsible, and a few other documents, you shouldn’t have an issue securing a small business loan.
Consider a Personal Loan
Unfortunately, not all business loans pan out. Either they determine that you’re too big of a risk, or they don’t think your business plan will pan out. Luckily, banks and loan companies aren’t your only option in this category. You can also reach out to family and friends to ask for personal loans.
The beauty of personal loans is that you don’t need to get all the money from one source. You can acquire smaller amounts from a larger group of people. Plus, since ice vending machines don’t need as much money as a regular startup business to start, it will be easier to pool the funds needed to buy the machine.
Another potential bonus is the interest will likely be much lower. Since you’re asking people you know for the money, they likely won’t charge you as much as a bank or financial institution would. However, you’ll need to make sure you follow through on any promises—the last thing you want to do is upset your family and friends by not paying them back.
Find a Business Partner
While searching for a personal loan, you might come across someone you know who has all the money you need to finance your machine. If you want to, you could offer them a spot in your small ice vending business as a partner. This partnership will save you from having to pay them back in the future since you’ll invest in the company together.
On top of that, you’ll now have someone who can help you run and expand the business more effectively. Of course, that means sharing the profits. However, two heads are better than one, and you’ll be able to accomplish much more with a trusted partner than you ever could on your own.
Try Out Crowdfunding
While family and friends are a nice option, not everyone has people close to them that they can go to for this kind of money. That’s why our next tip for financing your ice vending machine investment is to look into crowdfunding. Thanks to the internet, finding people who want to lend money is easier than ever.
Of course, you’ll need to create rewards for those who invest in order to convince them to give you money. To some, this will be a small price to pay to receive the funds you need for your machine. Don’t be afraid to get creative with what you offer. Just make sure that engaging with your business idea is worthwhile for investors.
Save Up Over Time
Sometimes, no matter how hard you try, none of the suggestions we’ve provided will pan out. However, that doesn’t mean you need to give up on your dream of owning an ice vending machine and turning it into an ever-expanding empire.
Instead, you’ll just need to be patient and start saving up. Like many other expenses in life, saving money to afford the thing you want to buy will eventually get you to your end goal. It just might take some time to get there.
If you’re afraid that saving money might take too long, you can combine it with the other methods in this article. The beauty of gaining the money you need for an investment is the fact that you’re not limited to any one solution. You can use a mix of them all if needed. As long as you weigh your options and consider their positives and negatives, you’ll be able to earn the money you need to buy your first ice vending machine.