One of the best ways to add another source of income to your business is with an ATM. As long as you have space for the machine, almost any business can put an ATM in a place that’s convenient for its customers and useful in producing income for your business. For most businesses, the only question is whether it’s better to buy or lease an ATM. Let’s take a look at the pros and cons of each.
Pros of Buying an ATM
When you buy an ATM, it becomes a one-time expenditure for your business that’s no different from investing in any other piece of equipment your business may need to operate. Once you put the money down to buy the ATM, you will begin recouping the money you spent on the machine. At some point, the machine will have brought in more money than you paid to buy it. At this point, you have turned a profit on the ATM and will continue to do so for as long as you have it. Perhaps equally important, as the owner of the machine, you’ll have final say on its location and the fees you’ll charge customers to use it.
Cons of Buying an ATM
Buying an ATM outright does require a few thousand dollars, and not all businesses have that much money in the budget. Also, as owner of the ATM, you’ll be on the hook for any repair costs that may come up. Like any other machine, it’s best to perform routine maintenance on an ATM to make sure it runs properly, and so you will have to budget money for maintenance and repairs. After all, if the ATM stops working, it’s not bringing in any money for your business.
Pros of Leasing an ATM
Leasing an ATM requires little money up front compared to the cost of buying one outright. If your business is in a position in which you need short-term returns, leasing an ATM could be a wise move, as the upfront investment is usually minimal. Leasing is also a good idea if you want to add ATMs at several different locations, as buying multiple ATMs at one time will come with a massive price tag. You may also want to consider leasing if you’re not sure if an ATM is the right move for your business. Leasing usually doesn’t require a long-term commitment, so you can try out an ATM for a few months and see if it’s a good fit.
Cons of Leasing an ATM
As is the case with leasing a car or home, there will be give and take with the party leasing you the ATM. You may not have control over how much you charge for each transaction or even where the machine will be placed. Also, leasing is likely to cost more in the long run than paying upfront to purchase an ATM. With a lease, you’ll always be checking to make sure the machine brought in more revenue than the cost to lease it. Obviously, this is not something you’ll have to do if you own the machine.
Ultimately, the decision to buy or lease an ATM comes down to the individual business. But if you have the capital to buy a machine outright, that’s usually going to be your best option. Also, if you plan on having the ATM for a long time, purchasing one is going to be better than leasing one. If you do make the decision to buy an ATM, let AtmMachines.com, LLC help you with that purchase, as they have two decades of experience selling ATMs to businesses nationwide.