- Required time in business: 6+ months
- Required monthly revenue: $10k+
- Min credit score: No credit needed
For many entrepreneurs, the idea of owning a vending business is an attractive proposition. Vending businesses can generate cash flow anywhere between $20,000 and $916,145 a year, with an average cash flow of around $104,897.78 annually.
Here are the details on the revenue and cost to acquire a vending business, plus how to purchase a vending business in 2024. And, we include the best financing options for funding your business.
How much does a vending business make?
The average vending business* has an annual net cash flow of $104,897.78. This equates to roughly $8,741.48 a month over a span of a year. However, the profitability of your vending business business comes down to its location, size, rent, wages and more.
Chart: Cash flow range of vending businesses currently listed for sale
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Vending business Annual net cash flow 1 $20,000 2 $24,000 3 $24,500 4 $26,913 5 $29,147 6 $29,520 7 $30,960 8 $32,275 9 $33,692 10 $34,564 11 $35,655 12 $36,932 13 $37,002 14 $38,116 15 $38,636 16 $38,868 17 $41,519 18 $41,668 19 $42,649 20 $42,856 21 $43,420 22 $44,000 23 $44,200 24 $44,306 25 $44,388 26 $45,000 27 $45,081 28 $47,187 29 $47,370 30 $47,757 31 $48,181 32 $48,911 33 $50,000 34 $50,000 35 $50,000 36 $50,077 37 $50,245 38 $50,400 39 $51,644 40 $52,104 41 $53,182 42 $54,293 43 $54,392 44 $54,548 45 $54,764 46 $56,176 47 $56,948 48 $57,352 49 $57,477 50 $58,136 51 $58,448 52 $58,479 53 $59,003 54 $59,188 55 $59,500 56 $59,736 57 $59,876 58 $60,008 59 $60,653 60 $60,948 61 $61,065 62 $61,256 63 $61,444 64 $61,993 65 $62,559 66 $62,984 67 $63,007 68 $63,007 69 $63,352 70 $63,500 71 $64,226 72 $64,703 73 $64,844 74 $64,844 75 $64,867 76 $65,488 77 $65,728 78 $66,404 79 $66,806 80 $66,820 81 $67,184 82 $67,328 83 $68,588 84 $68,744 85 $68,900 86 $69,025 87 $70,058 88 $71,000 89 $72,060 90 $73,112 91 $73,251 92 $73,424 93 $73,528 94 $73,790 95 $73,800 96 $73,800 97 $73,860 98 $74,000 99 $74,000 100 $74,200 101 $74,500 102 $74,620 103 $74,620 104 $75,000 105 $75,000 106 $75,125 107 $75,190 108 $75,290 109 $75,935 110 $75,972 111 $76,842 112 $77,134 113 $77,360 114 $77,671 115 $77,896 116 $77,896 117 $78,154 118 $78,551 119 $78,676 120 $78,716 121 $79,260 122 $79,535 123 $79,612 124 $80,100 125 $80,182 126 $80,246 127 $80,478 128 $81,271 129 $82,031 130 $82,108 131 $82,368 132 $82,420 133 $82,732 134 $82,741 135 $83,814 136 $84,019 137 $84,138 138 $84,530 139 $84,536 140 $84,867 141 $85,918 142 $87,535 143 $87,790 144 $88,870 145 $88,884 146 $89,000 147 $89,000 148 $89,180 149 $89,492 150 $89,544 151 $90,563 152 $90,650 153 $90,740 154 $90,792 155 $91,819 156 $92,716 157 $93,340 158 $94,307 159 $96,106 160 $96,327 161 $96,408 162 $96,895 163 $96,912 164 $97,240 165 $98,390 166 $98,488 167 $98,904 168 $99,488 169 $100,309 170 $101,612 171 $102,596 172 $102,752 173 $104,260 174 $104,656 175 $105,103 176 $105,593 177 $105,757 178 $106,059 179 $106,844 180 $106,912 181 $107,733 182 $108,000 183 $110,148 184 $110,188 185 $110,604 186 $112,164 187 $113,203 188 $113,260 189 $114,500 190 $114,713 191 $115,232 192 $116,607 193 $118,540 194 $119,000 195 $119,080 196 $119,704 197 $121,658 198 $125,005 199 $126,336 200 $127,312 201 $131,948 202 $132,599 203 $133,097 204 $133,147 205 $133,423 206 $137,742 207 $140,000 208 $140,157 209 $140,701 210 $143,618 211 $148,269 212 $149,615 213 $150,176 214 $160,000 215 $168,019 216 $169,520 217 $176,588 218 $179,000 219 $179,348 220 $183,000 221 $185,000 222 $185,000 223 $185,000 224 $185,000 225 $185,000 226 $187,000 227 $187,000 228 $187,000 229 $187,000 230 $188,000 231 $190,000 232 $190,000 233 $190,000 234 $190,000 235 $190,000 236 $191,367 237 $192,000 238 $192,000 239 $192,000 240 $193,000 241 $193,000 242 $193,000 243 $193,000 244 $194,000 245 $195,000 246 $195,000 247 $195,000 248 $195,000 249 $197,000 250 $197,000 251 $197,495 252 $213,000 253 $229,960 254 $232,066 255 $254,079 256 $339,609 257 $350,000 258 $846,565 259 $916,145
How to buy a vending business
- Find a vending business for sale. You can find vending businesses for sale locally or online. Online you can search "vending businesses for sale near me" to find a list of business or broker websites that lists vending businesses for sale. It's important to also take note of your finances by knowing how much you have saved towards the purchase of a new business, as well as how much you may need to borrow to buy the business.
- Figure out what the business is worth. Use various valuation methods to get a general idea of the fair market value of the business you're trying to buy to make sure you're getting a good deal.
- Do your due diligence on owning and operating a vending business. You'll want to weigh the pros and cons before taking the jump. Consider important factors that can affect the profitability of the business you're buying such as location, equipment, utilities and maintenance.
- Get a business loan and make an offer. Unless you have a lot of cash on hand, you'll need a business loan to finance the purchase of a vending business. Check out our top picks of lenders for a vending business business loan. Once you're ready to buy, contact and negotiate with the seller or agent of the business and finalize your offer. It may be helpful to have a lawyer look over any negotiations and final contracts.
Our top picks for a vending business business loan
Best for small businesses
- Required time in business: 6+ months
- Required monthly revenue: $8k+
- Min credit score: 520+
Good for online businesses
- Required time in business: 6+ months
- Required annual revenue: $60k+
- Min credit score: 550+
Cost of buying vending businesses
The average vending business for sale costs $184,138.57*. Although prices vary widely depending on the location, the age of equipment and whether you're purchasing real estate as part of the deal. Many are listed well below the average price, and some are much higher than the average price, especially in urban locations.
With the average annual cash flow of a vending business at $104,898, you can expect to make back your investment in roughly 1.76 years - this translates roughly to a 56.97% APY.
Chart: Cost of vending businesses available for sale
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Vending business Annual net cash flow 1 $25,000 2 $31,358 3 $35,000 4 $38,900 5 $50,000 6 $50,000 7 $52,000 8 $60,000 9 $60,000 10 $63,000 11 $65,000 12 $69,000 13 $69,000 14 $69,000 15 $69,000 16 $70,000 17 $73,000 18 $75,000 19 $75,000 20 $75,000 21 $77,000 22 $79,000 23 $79,900 24 $79,900 25 $80,000 26 $80,000 27 $80,000 28 $81,000 29 $82,000 30 $85,000 31 $85,000 32 $85,000 33 $88,000 34 $88,000 35 $88,900 36 $89,000 37 $90,000 38 $91,000 39 $92,000 40 $95,000 41 $95,000 42 $95,000 43 $95,000 44 $95,000 45 $95,000 46 $99,000 47 $99,000 48 $99,000 49 $99,000 50 $99,000 51 $100,000 52 $100,000 53 $100,000 54 $100,000 55 $100,000 56 $100,000 57 $102,000 58 $104,000 59 $105,000 60 $108,000 61 $110,000 62 $110,000 63 $110,000 64 $110,000 65 $110,000 66 $110,000 67 $110,000 68 $110,000 69 $110,000 70 $112,500 71 $113,000 72 $113,000 73 $115,000 74 $115,000 75 $116,000 76 $116,000 77 $120,000 78 $120,000 79 $120,000 80 $120,000 81 $120,000 82 $125,000 83 $125,000 84 $125,000 85 $125,000 86 $125,000 87 $125,000 88 $125,000 89 $125,000 90 $127,900 91 $129,000 92 $129,000 93 $129,000 94 $130,000 95 $130,000 96 $130,000 97 $130,000 98 $130,000 99 $130,000 100 $130,000 101 $130,000 102 $130,000 103 $135,000 104 $135,000 105 $135,000 106 $135,000 107 $140,000 108 $140,000 109 $142,000 110 $145,000 111 $145,000 112 $145,000 113 $145,000 114 $145,000 115 $147,500 116 $147,500 117 $147,500 118 $147,500 119 $147,500 120 $147,500 121 $147,800 122 $147,900 123 $149,000 124 $149,995 125 $150,000 126 $150,000 127 $150,000 128 $150,000 129 $150,000 130 $150,000 131 $150,000 132 $150,000 133 $150,000 134 $151,900 135 $152,000 136 $155,000 137 $155,000 138 $155,000 139 $155,000 140 $155,000 141 $155,100 142 $156,000 143 $157,000 144 $158,000 145 $158,000 146 $158,000 147 $159,000 148 $159,000 149 $159,000 150 $159,000 151 $160,000 152 $160,000 153 $160,000 154 $160,000 155 $160,000 156 $160,200 157 $162,000 158 $162,000 159 $162,000 160 $162,000 161 $163,000 162 $164,000 163 $164,000 164 $165,000 165 $165,000 166 $165,000 167 $165,000 168 $165,000 169 $165,000 170 $165,000 171 $165,000 172 $165,000 173 $167,000 174 $168,000 175 $169,000 176 $169,000 177 $169,000 178 $169,000 179 $170,000 180 $170,000 181 $170,000 182 $170,000 183 $170,000 184 $175,000 185 $175,000 186 $176,500 187 $178,000 188 $180,000 189 $180,000 190 $180,000 191 $180,000 192 $180,000 193 $183,000 194 $185,000 195 $189,000 196 $190,000 197 $191,000 198 $193,000 199 $195,000 200 $195,000 201 $195,000 202 $198,756 203 $199,000 204 $200,000 205 $200,000 206 $200,000 207 $200,000 208 $200,000 209 $200,000 210 $200,000 211 $210,000 212 $210,000 213 $215,000 214 $220,000 215 $220,000 216 $220,000 217 $225,000 218 $225,000 219 $228,950 220 $230,000 221 $230,000 222 $235,000 223 $239,000 224 $240,000 225 $245,000 226 $249,000 227 $250,000 228 $250,000 229 $250,000 230 $255,000 231 $260,000 232 $263,700 233 $270,000 234 $271,000 235 $275,000 236 $275,000 237 $275,000 238 $275,000 239 $284,000 240 $289,000 241 $300,000 242 $310,000 243 $327,000 244 $349,999 245 $359,000 246 $382,733 247 $399,000 248 $400,000 249 $420,000 250 $425,000 251 $450,000 252 $450,000 253 $465,000 254 $499,000 255 $499,000 256 $1,399,999 257 $1,500,000 258 $1,500,000 259 $2,200,000
Cost, revenue and cash flow of a vending business
The average price-to-cash flow (P/CF) ratio of a vending business business is 1.76. The P/CF ratio measures how much cash a company generates relative to its price. You might've heard of the term price-to-earning ratio (P/E ratio) before, which is a more commonly known ratio. Essentially, this measures how much you are paying for each dollar of the company's earnings.
The average operating cash flow margin of a vending business business is 0.21. The operating cash flow margin can be calculated by dividing operating cash flow by revenue. The operating cash flow margin reveals how effectively a company converts its sales to cash.
The average price-to-sales (P/S) ratio of a vending business business is 273%. The P/S ratio measures the revenue of the business divided by the cost, which indicates the percentage of the revenue you are paying for the company. Typically the lower the percentage, the better. However, it's best to look at a company's P/S ratio in comparison to the P/S ratios of similar companies in the same industry.
Chart: Cost, revenue, and cash flow breakdown of the lowest priced vending businesses currently listed for sale
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Vending business Cost Revenue Cost flow 1 $25,000 $30,960 $30,960 2 $31,358 $194,631 $26,913 3 $35,000 $378,501 $65,488 4 $38,900 $185,005 $32,275 5 $50,000 $221,929 $35,655 6 $50,000 $395,357 $66,404 7 $52,000 $184,140 $29,147 8 $60,000 $255,519 $38,636 9 $60,000 $475,124 $62,984 10 $63,000 $573,598 $78,551
Chart: Cost, revenue, and cash flow breakdown of the highest priced vending businesses currently listed for sale
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Vending business Cost Revenue Cost flow 1 $2,200,000 $9,750,846 $916,145 2 $1,500,000 $2,000,000 $350,000 3 $1,500,000 $787,798 $339,609 4 $1,399,999 $601,971 $254,079 5 $499,000 $400,000 $160,000 6 $499,000 $402,191 $48,181 7 $465,000 $587,000 $119,000 8 $450,000 $554,580 $150,176 9 $450,000 $1,180,962 $197,495 10 $425,000 $101,982 $61,993
Steps to buying a vending business
Buying this type of business involves finding one for sale, running the numbers and getting the right financing.
1. Search business listings
Start your search by Googling "vending businesses for sale near me." This brings up a list of business or broker websites with this type of business for sale in your area. From there, you can search listings and contact the seller or agent to get more information. Loopnet.com, Bizbuysell.com and us.businessesforsale.com are also good places to start your search.
2. Determine what the business is worth
Determining what a business is worth is both an art and a science. While this is by no means a complete list of the valuation methods available, you can get a general idea of the fair market value of a business with these calculations.
- Times revenue method. This is calculated by taking the revenue generated by a business over a certain period times a multiplier. The multiplier depends on the industry. For example, a retail company may be valued at 2.45x revenue, while a restaurant may be valued at 2.12x revenue.
- Liquidation value. This value is calculated by adding up everything a business owns, including real estate, equipment and inventory, and then subtracting the company's liabilities and debts. This can give you a rough estimate of what a business is worth, although it doesn't take into account future earnings.
- Discounted cash flow method. This calculation is based on projections of the future cash flows of a business, then discounts them to today based on inflation. It's a complex calculation best determined by using an NPV calculator.
Always consult with a qualified financial advisor if you have questions. In particular, look for a professional with the Accredited in Business Valuation (ABV) designation, which means they specialize in business valuation.
3. Do your due diligence
In addition to understanding what a particular business is worth, it's important to take into account the pros and cons before signing on the dotted line.
Here's a list of the top factors to consider:
- Location. The most successful businesses are located in areas with a lot of retail stores and traffic. However, consider the type of customers you foresee frequenting your establishment and their specific needs.
- Equipment. If your business requires special equipment, new equipment is more expensive upfront but can bolster your bottom line with reduced energy costs, less maintenance and more customers through the door.
- Competition. Consider the local competition and what sets your business offering apart.
- Utilities. If your business relies heavily on electricity, gas, water, trash and sewage services, you'll want to analyze the availability of these services and their costs carefully.
- Insurance. This is a must-have for any public-facing business. You'll want to make sure you have sufficient coverage to pay for a range of unforeseen circumstances.
- Maintenance. Who will do the repairs, mop the floors or answer the phone? While this business can be a part-time operation, no business is maintenance-free.
- Security. Depending on the location, your business may require extra security features, like cameras.
As with any large business purchase, be sure to educate yourself thoroughly about buying and running that type of business. Many online resources are available from experts who can offer in-depth guidance for your particular industry.
4. Get financing and make an offer
Business loans come in a wide range of flavors, but the most commonly used types for buying a new business or business assets include SBA loans, like the SBA 7(a), 504 and microloan lending programs, equipment loans or personal loans. These loans are offered by banks, credit unions and online lenders.
Online business loan marketplaces like Lendio, Lendzi and Businessloans.com can also be a good place to start your search. You'll want to compare multiple loan types across several lenders to find the best deal.
How to finance a vending business
Vending businesses can be financed with these options:
- Personal finances. Cash from savings, an inheritance or from selling another business can be an ideal way to finance your purchase.
- SBA loan programs. The SBA 7(a) loan program could potentially be used to purchase this type of business. To qualify, you need to have a 700+ score, a minimum 20% down payment and financial statements from the business of interest.
- Personal loan. Because they don't have a time-in-business or revenue requirement, personal loans can be another way to finance your purchase, especially if you can get a competitive rate.
- Equipment loan. Equipment loans can sometimes be used to finance this type of business equipment, depending on the business's eligibility. But it may be trickier to get an equipment loan if your business is a mostly cash business or considered a restricted business.
Tip: If you're going for an SBA loan to purchase your business, try to find a preferred SBA lender to help push your application through faster.
Steps to get a loan for a vending business
Here are the steps to apply for a business loan:
- Check your eligibility. This step involves checking your personal score and determining if you have any collateral to pledge if you choose a secured loan.
- Gather your documentation. These typically include bank statements, tax returns, the business's financial statements and a personal guarantee.
- Complete the application. Fill out the full application, upload documents or link your financial accounts and review the application for accuracy.
- Wait for approval and funding. Next, you need to wait for approval and funding. SBA loans can take weeks to months to process.
Where to buy a vending business
We've found vending businesses publicly listed for sale in the following states. Updated daily.
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State # of vending businesses for sale Alabama 6 Arizona 5 Arkansas 1 California 15 Colorado 7 Connecticut 2 Delaware 2 Florida 34 Georgia 20 Idaho 5 Illinois 8 Indiana 4 Iowa 1 Kentucky 6 Maine 2 Maryland 5 Massachusetts 4 Michigan 6 Minnesota 2 Mississippi 1 Missouri 8 Nebraska 3 Nevada 6 New Hampshire 4 New Jersey 7 New Mexico 1 New York 17 North Carolina 12 Ohio 5 Oklahoma 1 Oregon 5 Pennsylvania 18 South Carolina 8 South Dakota 1 Tennessee 10 Texas 35 Virginia 10 Washington 6 Wisconsin 1 Wyoming 2
The annual cash flow of the vending businesses range from $20,000 to $916,145.
Chart: Cash flow of vending businesses that are currently listed for sale
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Vending business Annual net cash flow 1 $20,000 2 $24,000 3 $24,500 4 $26,913 5 $29,147 6 $29,520 7 $30,960 8 $32,275 9 $33,692 10 $34,564 11 $35,655 12 $36,932 13 $37,002 14 $38,116 15 $38,636 16 $38,868 17 $41,519 18 $41,668 19 $42,649 20 $42,856 21 $43,420 22 $44,000 23 $44,200 24 $44,306 25 $44,388 26 $45,000 27 $45,081 28 $47,187 29 $47,370 30 $47,757 31 $48,181 32 $48,911 33 $50,000 34 $50,000 35 $50,000 36 $50,077 37 $50,245 38 $50,400 39 $51,644 40 $52,104 41 $53,182 42 $54,293 43 $54,392 44 $54,548 45 $54,764 46 $56,176 47 $56,948 48 $57,352 49 $57,477 50 $58,136 51 $58,448 52 $58,479 53 $59,003 54 $59,188 55 $59,500 56 $59,736 57 $59,876 58 $60,008 59 $60,653 60 $60,948 61 $61,065 62 $61,256 63 $61,444 64 $61,993 65 $62,559 66 $62,984 67 $63,007 68 $63,007 69 $63,352 70 $63,500 71 $64,226 72 $64,703 73 $64,844 74 $64,844 75 $64,867 76 $65,488 77 $65,728 78 $66,404 79 $66,806 80 $66,820 81 $67,184 82 $67,328 83 $68,588 84 $68,744 85 $68,900 86 $69,025 87 $70,058 88 $71,000 89 $72,060 90 $73,112 91 $73,251 92 $73,424 93 $73,528 94 $73,790 95 $73,800 96 $73,800 97 $73,860 98 $74,000 99 $74,000 100 $74,200 101 $74,500 102 $74,620 103 $74,620 104 $75,000 105 $75,000 106 $75,125 107 $75,190 108 $75,290 109 $75,935 110 $75,972 111 $76,842 112 $77,134 113 $77,360 114 $77,671 115 $77,896 116 $77,896 117 $78,154 118 $78,551 119 $78,676 120 $78,716 121 $79,260 122 $79,535 123 $79,612 124 $80,100 125 $80,182 126 $80,246 127 $80,478 128 $81,271 129 $82,031 130 $82,108 131 $82,368 132 $82,420 133 $82,732 134 $82,741 135 $83,814 136 $84,019 137 $84,138 138 $84,530 139 $84,536 140 $84,867 141 $85,918 142 $87,535 143 $87,790 144 $88,870 145 $88,884 146 $89,000 147 $89,000 148 $89,180 149 $89,492 150 $89,544 151 $90,563 152 $90,650 153 $90,740 154 $90,792 155 $91,819 156 $92,716 157 $93,340 158 $94,307 159 $96,106 160 $96,327 161 $96,408 162 $96,895 163 $96,912 164 $97,240 165 $98,390 166 $98,488 167 $98,904 168 $99,488 169 $100,309 170 $101,612 171 $102,596 172 $102,752 173 $104,260 174 $104,656 175 $105,103 176 $105,593 177 $105,757 178 $106,059 179 $106,844 180 $106,912 181 $107,733 182 $108,000 183 $110,148 184 $110,188 185 $110,604 186 $112,164 187 $113,203 188 $113,260 189 $114,500 190 $114,713 191 $115,232 192 $116,607 193 $118,540 194 $119,000 195 $119,080 196 $119,704 197 $121,658 198 $125,005 199 $126,336 200 $127,312 201 $131,948 202 $132,599 203 $133,097 204 $133,147 205 $133,423 206 $137,742 207 $140,000 208 $140,157 209 $140,701 210 $143,618 211 $148,269 212 $149,615 213 $150,176 214 $160,000 215 $168,019 216 $169,520 217 $176,588 218 $179,000 219 $179,348 220 $183,000 221 $185,000 222 $185,000 223 $185,000 224 $185,000 225 $185,000 226 $187,000 227 $187,000 228 $187,000 229 $187,000 230 $188,000 231 $190,000 232 $190,000 233 $190,000 234 $190,000 235 $190,000 236 $191,367 237 $192,000 238 $192,000 239 $192,000 240 $193,000 241 $193,000 242 $193,000 243 $193,000 244 $194,000 245 $195,000 246 $195,000 247 $195,000 248 $195,000 249 $197,000 250 $197,000 251 $197,495 252 $213,000 253 $229,960 254 $232,066 255 $254,079 256 $339,609 257 $350,000 258 $846,565 259 $916,145
Sources
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Kat Aoki was a personal finance writer at Finder, specializing in consumer and business lending. She’s written thousands of articles to help consumers make better decisions on their home loans, bank accounts, credit cards, cryptocurrency and more. Kat is well versed in working with leading brands in the real estate, mortgage and personal finance industries, and her expertise has been featured on Forbes Advisor, Lifewire and financial comparison sites like iSelect and realestate.com.au. She holds a BS in business administration from California State University, Sacramento and enjoys hiking and yoga in her spare time. See full bio
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