Wednesday, August 30, 2006

Leasing Vending Equipment

Operators are under constant pressure to maintain profitability and also to increase their return on investment. The best measure of overall performance for any business is return on assets (ROA).

There is a new product in the vending industry that can increase a business’s ROA. The new product is operating leases.

If you are new to the vending business and would like to start off with Antares vending machines, you will find that operating leases not only provides increased ROA, but will also reduce the operator’s risk by enhancing flexibility in allocating assets to the highest revenue generating location. Leasing Antares vending equipment is no different than trucks, copy machines and automobiles.

Below is the number of benefits in operating equipment leases.

· Matches the revenue stream of a contact with the lease cost of equipment.

· Reduces the fixed cost of a purchase with the flexibility of a lease.

· Frees capital for other requirements

· Protects against equipment obsolescence.

Antares operators struggle to increase and maintain the profit before taxes portion of the ROA ratio. Competitive pricing pressures, increased commission costs, expended government regulation and inventory shrinkage are just some of the issues facing operators. Significant effort in running a business is focused on revenue and cost structure issues.

Vending equipment is typically the most significant asset on the Antares operator’s balance sheet. Therefore, the daily challenge of the operator is finding the right balance between income and assets, which increases one’s ROA.

Majority of operators buy their vending equipment. But to increase flexibility to upgrade to new and more efficient equipment, an operating lease may be a wiser choice for your Antares vending business.

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