Portfolios exist in many ways. Property owners have collections of homes in their portfolios. Likewise, agents and Independent Sales Organizations (ISOs) work to build portfolios of merchant services or credit card processing accounts.
No law or rule requires you to keep your portfolio forever. Circumstances and priorities shift, making selling a merchant services portfolio enticing.
Many hard-working professionals’ account portfolios are more than just residual income—they represent the culmination of hard work and consistency. That said, holding onto your portfolio forever is unlikely to be an ideal solution.
ISOs and agents may sell their portfolios for personal, professional, or financial reasons. Building a portfolio is a significant achievement. So, what are the main reasons for selling credit card processing accounts? You’re about to find out. We’ll also cover the benefits of selling a payment processing residual stream.
Why Sell a Merchant Services Portfolio? 5 Reasons ISOs and Agents Sell
1. Covering a Cash Crunch
As most people experience, economic downturns or unexpected expenses can take anyone by surprise. These challenging situations can be excellent times to sell part or all of a portfolio. For many, the lump sum of a portfolio sale can extend a crucial lifeline during an uncertain time.
Examples of why to sell a merchant services portfolio during this time can include paying for:
- Legal matters
- Loss of a high-value client
- Health issues
- Debt
Failing to promptly settle personal or business debts can result in financial and legal consequences. Choosing Velocity Funding when it’s time to sell your portfolio can be highly advantageous. That’s because we purchase a high percentage of the portfolios we evaluate.
We also specialize in working thoroughly and quickly. Velocity Funding provides offers for portfolios we want to buy within 24 hours. Additionally, with a purchase rate of about 80%, our team of skilled buyers offers a reliable solution when you need it most.
In addition to buying most of the portfolios we evaluate, Velocity Funding works quickly to provide the financial relief you need. We can help you understand why selling a payment processing residual stream can improve your situation.
2. Unhappy With a Current Processor
You can help make decisions that implement positive changes within your business. However, not all companies operate the same way, and it’s common for a company to deal with occasional issues over time.
However, continual partner-related problems could negatively affect your company’s bottom line. In that case, selling a merchant services portfolio lets you part ways with a problematic processor.
Reasons companies part with vendors include:
- Negative Interactions: Understandably, your business doesn’t want unresponsive or unhelpful staff who don’t respond to concerns.
- Pricing Concerns: Frequent or sizable fee increases can be significant problems for any business.
- Not Being Transparent: No business wants to deal with hidden fees and other unexplainable expenses.
- Outdated Technology: The business world moves quickly. If a business partner uses obsolete technology, it could hinder your company’s operations.
Selling your portfolio removes the need to manage ongoing frustrations and frees you from tying yourself down with a lackluster processor.
3. Retiring or Entering a New Industry
Exiting an industry is another answer to the question, “Why sell a merchant services portfolio?” Two reasons for this include retiring or entering a new industry. Winding down your professional career is a stellar opportunity to sell your portfolio. However, your portfolio will likely not come with you if you plan on working in a new industry.
You have a viable reason to sell credit card processing accounts in either situation. Selling your portfolio lets you close the chapter of your time managing them. When you sell these accounts to Velocity Funding, you have the assurance that your portfolio is in good hands.
Our process is seamless. We believe you should focus on what’s next in your personal or business life while we handle the logistics of transferring and managing your accounts.
4. Reinvesting
Not everyone wondering why to sell merchant service portfolios wants to retire or exit their chosen industry. Agents and ISOs sometimes want to do a bit of reinvesting. Understanding why to sell a merchant services portfolio can be the foundation of what makes these new investing efforts possible.
Reasons to reinvest can include:
- Hiring more employees to handle more clients
- Upgrading company technology
- Launching a product line
- Expanding business operations into new industries or locations
- Wanting increased capital for investing
- Investing in website Search Optimization to drive more online leads.
This reason also ties into the importance of diversification. Selling a small portion of your portfolio can earn money to land accounts in new locations or industries.
Strategic reinvesting can turn a partial or complete portfolio sale into a major catalyst for unprecedented business growth. This capital infusion can help you target new markets, scale operations, or remain competitive when your business experiences a sudden downturn.
5. Selling for Maximum Value
Timing is vital when selling nearly anything, especially a portfolio. Another reason to sell a credit card processing account is to maximize revenue. This aspect of selling is a skill acquired through extensive knowledge of the merchant services portfolio industry.
However, it’s best not to get stuck finding the perfect time to sell your portfolio. Waiting too long could cause your accounts to experience a drop in overall value.
6. Take Some Risk Off the Table
Every portfolio experiences attrition. Unless you continue to actively replace the lost accounts, your portfolio is losing value. Selling for a lump sum of money and investing it in the stock market can produce an asset with income forever. You can sell all or part of your portfolio to spread your risk and invest the lump sum in another opportunity or in the stock market for steady long term income.
Why Sell a Payment Processing Residual Stream? The Main Benefits
After learning about why to sell a merchant services portfolio, wanting to know what makes it beneficial is just as important. If you’re on the fence about selling, consider the benefits below.
Receiving a Lump Sum Payment
Receiving a sizable payment is essential when considering selling credit card processing accounts. Having a residual income stream provides vital compensation instead of waiting for smaller payments to accumulate month by month. Having these options is a significant reason why people sell merchant services portfolios.
Not Dealing With Money Stress
Operating any business venture means dealing with distress. However, that doesn’t mean people want to deal with work-related stress if they can avoid it. Whether coping with disappointing merchant performance, market changes, or something similar, selling a portfolio can be a profitable way to relieve portfolio-related stress.
Having More Options
For most, life is better with options. However, these choices might not be possible if you’re limited to the monthly residuals you earn. Selling a merchant services portfolio provides options that aren’t otherwise possible, such as making a significant investment or changing careers.
Ready to Sell? Choose Velocity Funding
As you’ve learned in this post, there are many reasons to sell credit card processing accounts. What’s just as important as why to sell a merchant services portfolio is finding the right buyer. Look no further than Velocity Funding. Our company is backed by over 25 years of experience.
Velocity Funding guides you through the sometimes complex and confusing portfolio selling process. Join hundreds of satisfied clients who choose our company when ready to sell. We’re prepared to turn your hard work into an attractive lump sum payment.
Sell Your Credit Card Processing Account Portfolio
Dean Caso is a Managing Partner at Velocity Funding, which he founded with this company’s other Managing Partner, David Caso, in 2006. Caso graduated in 1983 from Babson College with a Bachelor’s degree in Finance and Investments. With over 35 years of experience, Caso has acquired over 300 credit card processing portfolios. He has a superior eye for opportunity and an unwavering commitment to excellence. Caso’s leadership instills confidence, fosters innovation, and inspires those under his professional command. His decades of industry experience and proven track record of success continue to drive Velocity Funding’s growth and industry-leading presence.