Posts Tagged ‘vault cash’

We can be your vault cash ATM provider for as little as .75 per transaction

The key to growing in the atm business is simply CASH FLOW! Without it, you will be stuck with assets that you can not fill with cash.  Making things worse is the inability to have access to vault cash within the atm business. That leaves many companies to only deal in local markets (to cut down on costs). Furthermore, it doesn’t allow you to grow.

One way to continue the growth is to use companies that offer vault cash services. Here’s an example:

You have an atm location that does 250 transactions a month @ $2 surcharge ($500). You pay the store owner .50 transaction ($125). Assume your buyrate is .10 and you get .30 ($75) on the backend (hopefully you are getting at least this amount, if not contact me asap so I can slap you! After that I can point you in the proper direction)

So from our example above you have a profit of $450. Now depending on your cash flow situation, you are either using your own money or borrowing it at an interest rate.  Throw in time, commute costs, or even armor car costs, your profits are dwindling.  Additionally, and more importantly, this is hindering your growth.

What if I told you we have a close relationship with an atm company that would charge you .75-$1.00 per transaction to handle your entire cash vault operation? This will dramatically increase your cash flow and allow to scale your growth as you reposition your portfolio. Minimum transaction count is 150 transactions a month in order to qualify. You can always read our Sell your atm portfolio blog.

Contact the author: ATM Business Author

ATM Portfolio Valuations

As a person/company is growing their atm portfolio, you should always keep in mind of your exist strategy. Never forget that you can unlock amazing value by properly structuring your route and contacts. Today, if properly structured, you can get up to 18 months of monthly profits on a sale.

Some tips to think of:

Vault Cash: Many times, companies do not use armor car. While this cuts down on costs, it makes the value of your location less. For instance, by not having your atm setup for armor car, you are forcing that new owner to retrofit the atm with a new lock (ie cencon) or needing to replace the atm machine entirely.  This will greatly effect the valuation.

Contracts: This is the gold part. To unlock the most value, you need a solid contract with multiple years left on it. A good rule  of thumb is to have at least 3 years left on the contact, ideally 5 years. With more years left on the contract, you run a greater chance of getting a higher buyout price. Additionally, you can earn a even higher value if you can get the existing atm location to sign a new contract with the acquisition.

History: The longer the transaction history, the greater the value. If you have less than 6 months of transactional data, you will have a very hard time to sell it. Ideally, you want a solid year of transactions to show the seasonaility of the locations to the new owner.

ATM Hardware: If you are using an older model atm, or there seems to be issues with the atm, you might want to upate the parts. Or better yet, replace the atm entirely. When a new owner is looking to purchase, they look at ways to lower the price by additional work that they need to do.

So How Much Will I Get?
Ah, the question all atm owners want answers too. If you have

  1. Solid Contract – 5 years remaining
  2. ATM Machine is Armor Car Ready
  3. At least one year of transactional data

I can get you 15-18months of gross profits.
Example, you average 500transactions a month, $2 surcharge, with .50 per transaction going to the owner, that leaves you with a gross profit of $750. Assume .30 on interchange, brings us to $900 gross profit. This one location would get between 13k-16k

If we take that same example, but you it doesnt have armor car set up and/or has a small dispenser, the valuation could drop to 12-15 months.

Those are generally not the deal breakers. The deal breakers generally revert back to the contract. This will make or break the valuations of your portfolio. Many atm companies feel their locations are worth more. Thing is, its only worth what someone is willing to pay for it. By trying to cater to the buyer AS MUCH AS POSSIBLE, you run an excellant chance of coming through with a proper sale!

If you have portfolios you are looking to sell, or would like some additional information on setting meetings up with buyers (all under an NDA), feel free to contact me : Contact the author: ATM Business Author

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