Banks to the rescue with $50 million lifeline for cash transporter Armaguard

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Banks to the rescue with $50 million lifeline for cash transporter Armaguard
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Armaguard's biggest customers will pour up to $50 million into the troubled cash transporter to keep it afloat for the next 12 months.

Australia's last remaining cash transport company, Armaguard , will get a $50 million bailout from its eight largest customers, including banks.A forensic accountant will scrutinise Armaguard 's books to ensure bailout conditions are met.

Armaguard rejected a bail-out offer in March from major banks and retailers, concerned it required them to reveal too much commercial information.The big four banks are poised to intervene in the business of transporting cash because its plummeting use is making it unprofitable for Armaguard to deliver.Armaguard has blamed the rapidly declining use of cash for its financial woes, with cash purchases falling from more than 60 per cent in 2010 to just 13 per cent in 2022.

A forensic accountant will scrutinise Armaguard's books, ensuring the targets are met and that the funding remains with Armaguard and not its parent company, Linfox. But just months after the merger, Armaguard flagged it was struggling to continue operating the same level of service, at the same price, while cash use continued to decline.

But almost all Australians still use cash occasionally, and those who use cash a lot are more likely to be older and have lower incomes. 'Carbon dioxide does not recognise political parties': Labor appoints former Liberal minister as head of its climate change body

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