Creative Financing

By Vito | October 6, 2010

Gone are the days of easy credit and a deluge of credit card offers in the mail from banks. Five years ago one could easily refinance a home in order to draw out cash and finance your business needs, but those days are in the past. For the small ATM operator, this has presented a new set of challenges and cause for innovative solutions to supply our ATM’s with cash and to purchase new equipment.

As most ATM operators might be aware, many ATM ISO’s and equipment suppliers are now offering equipment financing depending on one’s credit. If your supplier currently does not offer such solutions, I would encourage you to start calling different ISO’s and/or authorized equipment distributors that might be eager enough for your business to offer equipment financing. In addition, there are equipment leasing companies that specialize in financing capital purchases, though beware of their rates and terms, as they’re not always favorable.

More difficult has always been acquiring access to cash. If you have a thriving, growing ATM operation, sooner or later you may well confront the reality that you no longer have enough cash to keep your machines filled. What could be worse than having a successful business operation that you can no longer fund? This is when the ATM operator has to think outside the box.

Do you have relatives or friends sitting on cash that don’t know what to do with it? There are more people sitting on their money now than you might realize, people are scared to put their money anywhere, yet are eager to put it somewhere more lucrative than in a CD that yields 2%. Go to your friends, family, and close acquaintances and open up your books, showing them how your business works and how it has grown, yet needs cash. Offer them a handsome return (between 5 – 10%) and if they want security, offer to allow them to put a lien on your property or perhaps on your business.

It’s a situation in which both parties can benefit. If you get into a bind with cash, these are the types of solutions you’ll need to survive in our tough financial times.

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