: These deals often create a "credit balance" cycle. For example, a customer might pay £30/month, receive the machine, and get that £30 back as coffee credit, making both the machine and the subsequent coffee orders feel free. "Free on Loan" for Businesses
: Suppliers often charge significantly higher prices for these supplies to cover the machine’s cost, servicing, and maintenance. For instance, coffee that might retail for £6/kg could be priced at £16/kg under a free-on-loan contract. Potential Pitfalls and "The Catch"
: In exchange for the equipment, the business must purchase all consumables (beans, milk, sugar, pods) exclusively from that supplier.