ATM Leasing
If you have decided to buy an ATM Machine for your retail establishment to increase your monthly revenue, you will have to decide whether your best option is to buy or rent one.
Your decision will make a considerable difference in your cash flow and determine your profitability. This decision will depend on your current business situation.
Leasing an ATM Machine used to be the only viable option for a small business owner when these machines cost over $5,000.
But, since the price has now dropped, you can buy a machine for $2,000 to $3,000.
For this reason, retailers often decide to buy a machine. They want to avoid committing to another monthly payment.
ATM Investments
According to statistics, an ATM’s Return on Investment (ROI) is between three to eighteen months.
The ROI is determined by a number of factors:
- Store traffic in the location,
- Demographics of the neighborhood,
- Hours of operation, and surcharge.
The national ROI average for machines with a $2 surcharge is about eight to nine months.
Still, this may not be the best decision, particularly if your business is on a tight budget.
Rather than giving up the idea of earning an additional income from an ATM, leasing one is a viable alternative.
Lease an ATM Machine
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Increase Cash Flow
By leasing a machine, you will improve your cash flow because the machine will be earning while you are making payments on it.
- If a business owner has excellent credit and does not require additional options, they can lease a machine for as little as $55 per month.
- In addition, the business owner is also eligible for a 60-day deferred financing agreement.
- This way, the machine can earn before you begin making payments on it.
Deferred Payment Plan
Qualification for the deferred payment plan will depend on a number of factors.
- If you qualify for this alternative financing plan, you can make three equipment payments.
- After buying the ATM, you can make a 50% deposit and two 25% deposits 30 days apart.
- If, for example, your ATM purchase is $2,500, you can lease it over a three- or five-year period.
- Your lease rate per month will fall between $55 and $95. The lease rate is determined by your credit, how long you have been in business, and the type of ATM equipment you select
Benefits to Leasing an ATM:
1. Your lease payment is always the same. This allows for predictability when you are determining your budget.
2. Your expenses are cash deductible.
3. You will recoup your expenses each month from your ATM operating commission.
Five Steps to Lease an ATM:
Understand What You Want
Different ATMs and ATM Businesses have different requirements. It is important that you understand them before leasing an ATM.
For instance, you should know which bank or financial institution you would like to be a franchise of.
Similarly, you must also understand the other costs you will have to incur for the installation and maintenance of the machine.
Now, generally, when you lease a machine, these costs are taken care of by the provider’s company.
Meanwhile, you should also consider the kind of machine and model you would want.
Choose a Company
While leasing a machine, the first thing you need to do is choose a company.
You should ideally select a company by researching online, knowing which providers offer what kind of products, how their services differ, and what all will you receive in your lease package.
Choose monthly payments or lump sum payments depending on your requirements.
Know This
It is important you know about any hidden costs that you may have to incur while ATM leasing.
You should certainly discuss the issue with potential providers, because generally a company may scam you by offering a lease at throwaway prices and then adding hidden charges, which go beyond the regular leasing charges for an ATM machine.
Similarly, you should also know that the upfront costs are lower and there are no long term commitment issues involved with leasing the product.
Study Reports
Different types of ATMs have different types of benefits.
You might want to study the reports and understand the positives and negatives of different machines before signing up for a lease.
You might want to discuss it with a professional from the leasing company to make an informed decision.
Sign the Lease
When everything is set up and you have chosen the company, go ahead and sign the lease. Now, you are ready to start your own ATM business.
Site Evaluation
These are some tips that will help you select the right location for your money machine.
Security: It is very necessary to check the security of the site that you will be choosing for the location of your money machine. Remember it is money. Money is inside the equipment.
Market: Locate the equipment where it can serve more people. More service means more revenue.
Bank Cash: Consider the amount of your money that could meet the needs of your customers. It your machine is offline, it will make you suffer. No cash flowing means no profit. Make sure that it would be accessible for you and your bank to easily put money onto your machine to provide full-time service to people.