4.0 Strategic and Market Analysis
4.1 Economic Outlook
The business of vending machine management is a relatively simply business. This section of analysis will detail the overall economic climate, and the interest rate environment, and the vending industry. The interest rate environment has recently caused the cost of borrowing to increase for all businesses. With the increase in overall market asset value, people are requiring the use of borrowed funds to increase their leverage capacity for real estate and business investments. This trend of rising interest rates is expected to continue as long as inflation remains stable. The Vending Machine Company’s business is no different. As the Company expands, Management may require the use of large lines of credit to assist in financing the ongoing cash needs of the Company in addition to leases and purchases of vending machine equipment.