Owning an ATM

[Moon91]

Hi

Has anyone aware about that kind of business. It says that it can improve your serviceability....

Does anyone own one already?

http://ownyourownatm.com.au/faqs/

Regards

 

[Peter_Tersteeg]

A few things to ask yourself...

How often do you use an independent ATM?

If you do use one occasionally, where are they? The ones I've seen that get some traffic are in convenience stores and gambling establishments. They're all operated by the owners of those establishments. The website FAQ is marketing to established businesses.

They can make sense if you've got a business where people might want access to an ATM, otherwise I doubt they'd make much money.

 

[joanmc]

Look at the fine print. How much of your capital is returned at the end? Do the math.

 

[AlmostBob]

The roadhouse where we holiday has an atm,
20K cash in few times a week.
1.50 fee /transaction
on the same internet connection as all the cash registers
3k return, /week.

going to put up the fee to match the banks, no reason, no extra costs, just more munny

 

[roe]

http://www.aussiestockforums.com/forums/showthread.php?t=21656&highlight=ATM

 

[Moon91]

Thanks for all the information.

I did the math.

Invest $14000 in year one with 20% ROI leave me with $2800 each year. After 10 years it is $28000. Investment that double in 10y is compounding at 7.2% pa.
On that we will add the 10% residual value ($1400).

I think one of the main advantage is if you have a LOC that can be use to generate some income to improve serviceability instead of being a liability taken into account by the bank.

I am just bouncing back idea. Not so kind to go that path anyway if I do not talk to someone who successfully get something out of it.

 

[Terry_w]

I met a guy living in thailand who invested in ATMs. the company went into liquidation and he lost the lot.

 

[joanmc]

A few more tid bits for you.
ATM standard contracts are 3 to 5 years so even though they offer that you can "pick" a site that might look great on their books there is no guarantee that they will still own that site after 5 years.
This industry has more churn than mortgages and is very small and everyone knows everyone.
If it is a "good" site (i.e. it does over say 1000 transactions/month) Then I can tell you now that everyone knows about it and are just biding their time for the contract to come up and try and bring the site to their company.
Basically, you are financing their business for them at a cheap rate of 7-8%
The deal Bob was talking about is different, that is a deal offered to businesses to have an ATM on their site, which can be very lucrative and beneficial depending on the site and number of transactions going through.

 

[abbyfresh]

If it is such a brilliant business your supplier and the marketers pushing people to buy into them would be buying into it themselves. There would be no need to continue to market these. Soon if you're out of cash you'll be paying through your smartphone rather than looking for an ATM.

The balance is substandard locations which don't perform too well. Also routine servicing and maintenance can eat into your outgoings considerably as you must use their authorised technicians etc.

The greatest value is in the location and associated traffic. Like in tourist places and away from civilization where you can't just walk into Coles and withdraw cash that way.

With that said, if you own an existing commercial shop front it would be worth seeing if you can fit one in to up your return. Sometimes just a billboard on your roof can be a better business.

 

[tobe]

I bought one last year. It has yet to be installed, so I am only receiving the minimum agreed rental. I havent been able to have my calls returned by the person who is in charge of installation. i have tried multiple times. The sales guy even emailed the guy, but still no luck.