Whether you’re looking for capital to take your business to the next level or de-risking a portion of your residual portfolio, PaymentCloud can help by buying your merchant portfolio. PaymentCloud is the best resource for strategy advice and merchant portfolio valuation. Find out how much your portfolio is worth.
The value of your merchant portfolio will depend on a number of factors, including the size of the portfolio, age of accounts, attrition rate, type of merchant & industry, and card-present vs card-not-present transactions, amongst other variables. Also, note that portfolios are usually evaluated on a “multiple” basis. This means the buyer is willing to pay X times (the multiple) your current monthly residual based on the factors outlined below.
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The rate at which merchants close their accounts will have a direct impact on the value of the portfolio. A high account attrition rate indicates that there is a higher risk associated with the receivables, which will result in a lower valuation. On the flip side, a purchaser will pay more if they think your accounts will stay in the portfolio for a long time.
The size of the portfolio is also a factor that can influence the valuation. A larger portfolio will typically be valued higher than a smaller portfolio.
You'll get a much higher valuation if you've built a sales engine that will keep running after the sale. This is called the "enterprise value" and it comprises all of the hard work you've put in to build your company. This is because the acquirer will be able to generate additional revenue from the new merchant accounts.
Valuing a merchant portfolio is a complex process and there are many factors that can influence the valuation. Call us now for specifics about your portfolio.
There are a number of benefits that come with selling your merchant portfolio. The most immediate benefits include de-risking a portion of your portfolio and receiving large amounts of capital to grow your business. Additionally, when you’re looking to retire or move on to other ventures, selling your merchant portfolio can provide you with the financial security and peace of mind you need.
De-risk Your Portfolio
Growth & Expansion
Buyout of Partners
Exiting the Industry
Peace of Mind
Selling your merchant portfolio can be a big decision, but the process does not need to be complicated. PaymentCloud’s portfolio purchase initiative extends to all our peers in the merchant services industry. We are here to provide consultation to your portfolio sale questions with full transparency. Upon assessment of your portfolio, we’ll make the process simple and fund you quickly.
With a team of experts who are well-versed in the valuation process, we can help you get the most for your portfolio.