Operating Lease On Planet Antares Vending Equipment

Not only can operating leases provide increased ROA but also reduce the operator’s risk by enhancing flexibility in allocating assets to the highest revenue generating location. Leasing planet Antares vending equipment is no different than trucks, automobiles and copy machines.
Some of the benefits accrued by operating leases are given below:

• Matches the revenue stream of a contract with the lease cost of equipment.
• Reduces the fixed cost of a purchase with the flexibility of a lease.
• Allows capital to be used for other strategic requirements.
• Prevent equipment obsolescence.

Vending machine manufacturers have introduced more new products and features for vending machines in the last few years. These product improvements are difficult for Planet Antares vending operator to exploit as the acquisition of the new equipment increases their fixed costs as well as presents the problem of disposal of old and obsolete equipment.

Commonly, there are several things that can happen in order to improve the ROA and cash flow. These include:

1) Increasing profitability
2) reduction of investment base

Planet Antares vending operators can increase the ROA through operating leases and obtain a better balance between fixed and variable costs. Operating leases provide the operator with the flexibility of cutting down on fixed costs by making the equipment a variable cost and deleting the investment from the balance sheet.

You can also decide to lease the vending machines for a period of time, ranging from one to five years. At the expiry of the lease period, the operator can re-lease the equipment, return it and upgrade to a newer machine or even purchase it at the market fair value.