How to finance your new office drinks machine

Posted by Richard Gray on 01-Jul-2016 09:48:29
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Here at Roast & Ground HQ, we are passionate about providing offices with high quality drinks equipment.  Therefore we offer different finance solutions to help a variety of businesses obtain their ideal drinks machine.  Below we list the advantages and things to consider, to help you decide which finance option is best for your company.

Purchase Outright: 

The most straightforward – you pay the market price for the machine and then own it outright.


  • Once purchased, you don’t need to worry about the finance of the machine again
  • An added asset
  • Option to claim tax relief off the machine (please seek the latest tax advice from your Accountant)


  • Upfront lump sum
  • Parts warranty usually limited to a year
  • Machine depreciates in value over time


Probably now the most popular method of financing equipment - you pay a monthly or quarterly amount to a leasing company for a fixed period of typically 3 or 5 years.  Once the fixed period has finished, you may have an option to pay a final fee to the machine supplier in order to own the machine outright or purchase/lease a new machine.


  • Avoids a large initial outlay, therefore you can obtain high quality equipment that you might not otherwise have been able to afford
  • As inflation rises, because your payments are fixed the cost of equipment reduces in real terms
  • Enables you to have money set aside for other key spending areas such as; new stock, staff, training, advertising etc
  • Simplifies budgeting as you pay a fixed amount each month/per quarter
  • Lease payments can be deducted from taxable profits


  • Finance is subject to credit approval
  • If you don’t keep up with payments the leasing company reserve the right to terminate the agreement and remove equipment from your premises (this may also affect your credit rating)
  • Payment obligations are not dependent on the performance of the equipment
  • Tax benefits are subject to paying corporation tax

Rent directly from your machine supplier

Similar to leasing, the main difference is ownership of the equipment never passes to you.


  • Easier to deal with the same company that provides the technical services and consumables
  • No upfront cost, therefore provides you with more financial flexibility
  • Access to machines that you might not have been able to afford otherwise
  • As payments are a fixed monthly sum, you don’t need to worry about interest rates


  • Machine supplier owns the machine
  • If you don’t keep up with payments your supplier may remove the drinks equipment from your premises

Free on loan machine

Your supplier might be willing to offer you a Free on Loan machine as long as you commit to purchasing a pre-agreed amount of consumables.


  • Free drinks equipment
  • Provides businesses with greater expenditure flexibility


  • Probably the least popular option as it is not available on all types of machines, especially with more expensive equipment
  • Have to spend an agreed amount otherwise your supplier again has the right to take back the machine

Company loan from bank

By financing your machine through your bank, you can own the machine, without paying a large upfront cost.


  • No upfront cost
  • Usually offer a low interest rate to begin with
  • You own the machine


  • Banks may change the initial interest rate on your payment
  • Might reduce your overdraft facility
  • Using your bank for all business funding is not best practice. You may end up in a vulnerable position if you have any unexpected payment needs pop up

Please don't hesitate to contact us to explain the above finance options in more detail and specifically advise you on the best solution for your business.

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Topics: Coffee Machine, Drinks Equipment, Finance

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