I’m about to open an Amex gold card and I’m hoping to get a credit line of somewhere around 8k? or so and use that for an atm machine business. The thing is though I have no clue how to get started . If you have some tips or advice can you leave it please ? Thanks
I owned 3 ATMs at one point thinking it was a viable business. It was quite a hassle.
First, you have to have a good location.
Businesses with a good location know they have a good location. They’ll either already have an ATM or they’ll want a big chunk of your revenue, or a flat monthly fee.
I talked to a grocery store that wanted $2500/mo per store to have the ATM in all of their 8 location. So $20k/mo.
Are you going to sign that contract as a newbie? Of course not.
Ultimately you will have to constantly withdraw cash and load the ATM, you can only collect so much in fees before you have to go load it again.
So if you want to cut down on the trips then you have to increase the cash in the machine which increases the cash you need in the bank and increases your risk.
You can model how much in fees you might make on average and how long it takes to do a trip. You’ll probably find that what you are making isn’t that great.
Say you put $2400 in a machine and the average withdrawal is $80 and you charge $3.50. You can handle 30 withdrawals and make $105 before you have to reload. So your trip takes you an hour and you make $100.
For me it was not worth the effort due to mediocre locations.