Order an ATM: Should You Lease a Machine
Placing an automated teller machine in your store or working premises such as a salon, restaurant, gas station, or an office building can provide you an additional profit.
It is also a convenience for your potential customers, especially if they cannot withdraw money in the close area.
Of course, everything depends on its transparency and visibility, but generally, you will be able to generate revenue from the transaction fees. The amount can reach up to thirty thousand dollars, depending on the placement, which is not something you should neglect.
However, if you wish to determine whether you should consider Greenstar dispensary ATM machines for your business, you should decide the best approach.
You can either buy or rent a machine, and the answer and decision depend on your current financial situation and other factors as well.
Advantages and Disadvantages of Leasing an ATM
Benefits of Leasing
According to reports, approximately five percent of your customers will use the automated teller machine at your location. Since there are more than 170 million cardholders in the US, it means that they will spend at least thirty percent more in case you implement an ATM.
Leasing an automated teller machine is highly beneficial since it is an affordable solution that will provide you additional profit. Each transaction will provide you income, which means that you will be able to apply for additional revenue to your location.
Besides, installing an ATM will help you increase business sales. Customers that are frequent to your business will rely on you instead of competitors due to ATM placement. Therefore, you will be able to improve the profit margins significantly.
As soon as you obtain the lease agreement, you will be able to pay a monthly fee in the next few years, depending on the agreement. Keep in mind that everything you pay for a lease is tax-deductible, which means that you can enjoy in the affordable venture.
Of course, at the end of the lease, you can either purchase the existing machine or choose the new one with similar conditions as the previous one.
The best thing about it is that you do not have to consider upfront expenses, which means that it is perfect for businesses that come with a limited budget.
You can also choose a short-term lease to test the location before you decide to purchase it. At the same time, routine maintenance and repair will be part of an agreement, which means that you can reduce the amount you spend on maintenance.
You should check here to learn about most common ATM frauds that may happen.
It is a great financing option that does not require a down payment, similar to other loans. The monthly expenses will not affect your overall profits, and you will ultimately be able to earn more than before when you consider all things we have mentioned above.
If you have a tight budget with plenty of bank loans, leasing will not affect your credit score, which is another benefit you should remember. The best way to get more customers and to improve overall cash flow is by renting the ATM before you decide to purchase it.
The Downsides of Leasing
Leasing is an excellent convenience in case you have a limited budget, but it comes with certain risks you should be aware of. The most problematic situations include fraud threats such as card traps and skimming, which is why you should invest in additional security and protection.
When it comes to liability, leasing is not the best choice possible unless you own the property you wish to place it. If you are renting a property as well as an ATM, your business will become a target for criminals that want to steal cash and scare people away from your business.
On the other hand, if you own a large business, and you have enough money to invest in buying, you should do it. As an owner, you will have additional control on annual services, maintenances, and surcharge.
Apart from that, the installation expenses are tax-deductible, which is another benefit of this particular option. Check out this link: https://www.usa.gov/tax-benefits to learn all tax benefits that you may get in the US.
Every single lease agreement is different, and it may feature hidden fees for service clauses and late payments. You should beware of leases that seem affordable, but in the end, they may be more expensive as the transparent ones.
Finally, it depends on your financial capabilities, whether you should purchase or lease the machine. It is as simple as that.