Commercial Arcade Game / Vending Machine Financing Information 
Coin Operated Arcade Games
and Vending Machine Purchase Options
1) Buying Outright - This is
the most popular option for acquiring arcade and vending machines,
as it entails the least amount of time and effort, and you can get delivery of your far faster than other methods. In addition to start-ups that already have their funding in place, many vending, arcade, bar, restaurant and retail shop owners choose to use their existing cash or savings, bank lines of credit
or home equity loans, or in some cases, even very "low-rate" credit cards to fund their purchase, as
this generally, but not always, costs a bit less than the finance charges incurred from
lease financing.
2) Lease Finance Purchase -
Financing is very popular option for purchasing arcade games
and vending machines, as it does not tie up your cash or existing credit
lines, but unlike buying,
financing products does cost a bit more than outright purchasing in the long
haul, and requires a
decent business track record (if financing goods for an existing business)
and/or at least a "fair"
or better personal credit score (above 550), plus a small initial down payment
and closing fees.
The leasing process
(although usually very fast) can make taking delivery of your purchase a bit
longer than simply buying them outright. Financing terms typically run from 12-60 months, and
interest rates on leases can vary anywhere from 4-8% for those with excellent credit
scores, or
a bit more for those with low to mid credit scores, so in some cases, it can be less
expensive to
use existing bank loans, lines of credit or personal credit cards to purchase arcade games and
vending machines than it is to lease finance them, depending on your
circumstances of course.
Lease Financing vs. Outright Purchasing of Arcade Games and Vending Machines :
Leasing arcade games instead of buying them outright in a commercial setting can sometimes
make more sense than outright buying. Leasing gives you financial flexibility, helps you meet changing
technology needs quickly and easily, and may offer tax advantages, too. Leasing is a great way
to add games to a existing commercial arcade, restaurant or bar game room business.
The Financial Advantages of Lease
Financing vs. Purchasing :
Financing can improve your cash flow and working capital. With equipment
lease financing, your
payments often are lower than with other types of financing. In fact, they are
just a fraction of the total purchase price, and may even qualify as a
pre-tax expense. And financing leaves your existing lines
of credit untouched and intact for other business uses.
Predictable expenses and an inflation hedge. With the lower, fixed-rate payments of an equipment lease, you're protected against inflation. You can budget and forecast with greater confidence, too. Not
only that - the equipment you use today will be paid for with tomorrow's dollars.
The Technology Advantages of Lease Financing :
More choices, more equipment, lower costs. With commercial
equipment financing, you are covered
by the original manufacturer warranty, just as if you bought the game outright. And because
the monthly
payments can be lower (in terms of total outright monthly payments) than other forms of financing,
you
can acquire more of the equipment your business needs now, and keep
your existing cash intact.
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