What if I told you WE can be your cash provider for $1 a transaction? The entire issue with “not having enough money for the machines” goes away. You’d be a bit excited right?

Details:

• Cost: $1 per transaction OR $400 minimum per atm (whichever is GREATER)
• All your locks need to be CENCON locks (since all money will be sent via armor car). If you need to get these locks, they can cost anywhere from $600-$900 for the lock and installation
• Processing – You will need to transfer your processing to the company providing the vault cash. You would get a buy rate of .20 all the way down to .12, depending upon how high your transaction count is
• Escrow – 1.5 months of costs need to be put in escrow
• Outside of the cash, you still service the machine (paper jams, reports, etc)

Scenario

You have an ATM in Atlanta doing 300 transactions a month at $2, you pay the store owner $100/mo flat fee. Chances are, you go through about 15k a month on this machine. That money is now all yours (freeing up cash flow to grow your business). Your existing profit was $500, plus the cost of your 15k (plus travel, expenses, headaches, etc).  Now, if you paid us the cost of being your vault cash provider, you still profit $100 a month, plus a percentage of the back-end.

Key Points

• If you need cash flow (for whatever reason), this is bar none the best option
• If you have locations that don’t qualify (making at least $500/mo), don’t even bother!

So is this for you? As with anything in the atm business, each situation is different. The details above are general guidelines that we go by to provide vault cash to ATM businesses
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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.

Read more about vault cash here.

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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: