Whether you need to sell your portfolio ASAP or want to increase its residual income, learning how to skyrocket the sales value of your portfolio can help you elevate your investing success. While this isn’t a simple task to achieve, it’s possible when you understand what drives portfolio value.
It’s easy to make mistakes with merchant services portfolios, such as poor portfolio diversification or haphazard market timing. Thankfully, these mistakes are fixable. Let Velocity Funding show you how to set clear investment goals, focus on long-term investing, and other strategies to maximize your portfolio’s sale value.
Understanding What Makes a Portfolio Valuable
Before you can maximize the value of your portfolio, understanding what makes it valuable is vital. After understanding these factors, you can begin working to optimize your portfolio.
- Performance History: Buyers understandably want to know they’re making worthwhile purchases. One way to research a portfolio’s worth is to ensure a stable history of earning significant residual income.
- Diversity: Diversified portfolios are considered less risky than non-diverse ones. Diversification helps minimize the risks of buying a portfolio heavily investing in certain companies or industries.
- Market Conditions: No matter the value of your portfolio, broader economic conditions can and will affect its worth to some degree. For example, selling your portfolio when the companies that make up your accounts are in a market upturn can help maximize your portfolio’s sale value.
- Stable Revenue: This metric is often vital for a potential portfolio buyer. It shows that a portfolio is earning consistent and residual income.
Follow These Strategies to Maximize Your Portfolio’s Sales Value
Implementing innovative strategies can help ensure your portfolio reflects stability, long-term growth, and immense profitability. Whether you’re ready to sell your portfolio or increase your residual income, these proven tactics can help you attract buyers willing to make attractive offers.
1. Focus on Long-Term Investing
Finding anything more valuable than a stable long-term investment is challenging. Because of that, most portfolio buyers would prefer a portfolio that provides more long-term than short-term profitability.
Follow these tips to maximize your portfolio’s sales value through long-term investing:
- Avoid Trend Chasing: When investing, trends are understandably enticing. However, more often than not, these opportunities can also prove volatile and risky. Avoiding this temporary enticement can help you avoid a common payment portfolio sales mistake. Upfront bonuses from a processor with clawback potential is an example of avoiding this situation.
- Look to the Future: Researching which industries and sectors that will have increasing sales volume is a great way to rebalance your investment portfolio.
2. Take Advantage of Compound Interest
Selling your portfolio allows you to invest and diversify in other areas. However, reinvesting in compounding investments can maximize your income .
The longer you let compounding investments work its magic, the greater the potential for you to experience astronomical growth. Turn your static merchant portfolio into a dynamic investment by selling it and buying stocks or bonds.
3. Invest In Growth Sectors
Predicting the future with complete accuracy is impossible. However, research what sectors and industries are primed for growth in the coming years and decades.
Spotting customers and industries showing long-term profit potential is critical for maximizing your portfolio’s sales value.
4. Balance Your Merchant Portfolio
Balancing your collection of accounts means utilizing portfolio diversification to minimize risk. If not, you risk having a portfolio that relies too much on a sector or business type.
5. Focus on Consistent and Predictable Cash Flow
One of the most critical factors for any person or business purchasing a portfolio is having dependable income. If your portfolio currently has wildly fluctuating revenue, it may not instill much confidence in potential buyers.
In this case, a diversified portfolio and focusing on long-term customer relationships can provide predictable cash flow.
Avoid These Common Payment Portfolio Sales Mistakes
Deciding to sell a payment portfolio doesn’t guarantee a sizable profit. A lack of profit often happens because sellers unintentionally make mistakes as they prepare to sell their portfolios. Fortunately, you can avoid common payment portfolio sales mistakes by knowing what they are.
A Lack of Portfolio Diversification
A crucial aspect of maximizing your portfolio’s sales value is diversity of merchants.
Maximizing a portfolio’s sales value might seem daunting. However, a strategic approach focusing on diversification, stability, and in-depth analytics is a proven way to increase its worth.
Whether you want to know your portfolio’s worth, you’re ready to sell, or both, contact Velocity Funding. We’re one of the nation’s leading direct buyers of merchant services portfolios. That means no dealing with third-company companies. Get started today with a free portfolio valuation.
Avoid Gauging the Merchant With High Fees
High margin Merchant accounts are enticing but that is a bad way to build a residual stream. It is the equivalent to “putting all of your eggs in one basket”. It is better to build a portfolio of many merchants at low margins. You will end up getting more referrals and obtaining loyal customers. A portfolio consisting of many happy merchants with great processing rates is worth much more than a few merchants with high processing rates.
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.