Updating A Classic
Asset-Based Loan Updating A Classic
Author: Valerie Mellema
Date posted: 05.01.23

Vending machines. Everyone has used one. Whether it’s grabbing a soda or snack, buying a stuffed animal, or purchasing electronics, we’ve all turned to the vending machine. Inserting credit cards or dollar bills gives us access to all sorts of treats and fun items without ever dealing with a salesperson. One man on the East Coast realized that vending machines were a lucrative option and started his own business installing them, filling them, and maintaining them. Over the years, he brought on new workers and was quickly considered one of the forefront experts in the local area on everything vending machine-related.

Is It Time for Modernization?

 

While old-school vending machines still exist, they aren’t as popular as they used to be. Many modern and innovative vending machines have been created and people are more interested in buying from them. This quickly led the vending machine company owner to realize he had a decision to make.

 

He could cut his losses and move on to something else, keep on going the way he always had and hope his profits wouldn’t suffer, or start upgrading his vending machines to meet the requirements of a modern consumer base. In the end, it was clear that only the last option was going to provide him with peace of mind.

 

The Cost to Update a Company

 

Thankfully, compared to some businesses, updating a vending machine company was less expensive. All in all, research showed that the man would need around $125,000. He needed this amount to modernize his brand and start taking advantage of the new business opportunities available.

 

It would have been possible to pay this in cash but the owner didn’t want to do that. It would have left him in trouble if any other problems came up. So, he decided to look into what kinds of financing were available for a brand like his own.

Updating A Classic

Introducing the Asset-Based Loan

 

A traditional loan was an option but not one that the owner was excited to take. Owning a business with equipment and a warehouse, he aimed to leverage these assets for a favorable interest rate. His research showed there were a couple of options that would meet his needs.

 

After learning more about his options, he eventually went with an asset-based loan. It seemed like the best option for getting everything he wanted, updating his company, and not needing to dig deep into his pockets (or profits) to do so.

 

The Benefits of an Asset-Based Loan

 

Asset-based loans have long term lengths from two to 10 years and an interest rate that is lower due to the use of collateral. Funding is made within 90 days and funding amounts can reach into the tens of millions. The owner decided this was the right choice since there was a lot of flexibility and payments would be lower.

 

He hit all of the qualifications, like a 650+ FICO score, a year in business, and at least $250,000 in revenue. Once he applied, he was approved and had the money to start modernizing his brand.

Where Is the Brand Today?

 

Since receiving his loan, the owner of the business has updated most of his vending machines. He made these updates to increase their appeal to a modern audience. After seeing the difference it makes in terms of profit, he’s considering installing more machines. He’s considering placing these machines in various high-traffic areas around the city. Until then, he’s happy to say that the business is doing well and looks as if it will be around years from now.

Updating A Classic
About The Author | Valerie Mellema

Valerie has over 16 years of experience as a professional writer of blogs, eBooks, articles and press releases, with a focus on finance and alternative lending. Valerie resides with her family in Texas and is passionate about her horses.

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