ATM Machine Lease option has many advantages versus
a cash sale or bank loan!
a cash sale or bank loan!
| Cash Sale | Lease | Bank Loan | |
Down Payments | You must pay the full cost of the ATM equipment at time of purchase. | Low down payment even an option for zero down when you choose an ATM machine lease. | Banks usually require a down payment between 5-25% of the ATM equipment cost. |
Flexibility of Financing | Prohibits you from adding more ATM equipment / services based on the large upfront cost. | Flexible financing options Low Down Payment. Monthly payment remains constant through an ATM machine lease. | Monthly loan payment can be variable - it may increase or decrease periodically. |
Effect on bank / credit lines | Depletes your bank account of income-earning funds. | Bank line of credit is not affected and lease company can be utilized as a second source. | Bank lines of credit / loans may be tied up and unavailable for future loans / leases. Bank also could place an all asset lien. |
| Decrease in cash flow immediately. | Leased equipment is considered an ‘expense’ on operating leases. Such assets do not appear on balance sheets which improves financial ratios. | Banks require owned equipment to appear as an asset on budget sheets which will affect your line of credit. |
Credit Approval | Not applicable in a cash sale. | Typical turnaround time for a credit approval is under 2 hours. | A bank usually cannot offer turnaround time in hours as most banks take days or even weeks to approve a loan. |
Upgrade or Adding Equipment | Large, upfront purchase reduces the possibility of spending more on options or future purchases. | With a lease you can afford more equipment and options without the large upfront budget cost. Allows you to roll in additional services. | Most banks also will not allow you to roll in additional services (i.e. maintenance, air time, monitoring). |