Traditionally, a lending assessment is based on historical financial information, with little credence placed on the positive effect of a new machine tool to a business; often this can result in less than favourable terms being offered. The result can be delayed investment and the continued use of old technology and equipment far longer than managers would like. This can have a detrimental effect on competitiveness and make taking advantage of new growth opportunities, which necessitate new machinery, difficult.
With its intrinsic knowledge and understanding of the industry, DMG Mori Finance can take a future-related view on machine tool investment and instead of concentrating almost exclusively on historic financials, is able to place priority on the intended outcome of the investment.
James Clist, director – UK business, DMG Mori Finance, gives an example: “We have recently concluded a successful leasing arrangement with a small but very stable subcontractor that has been in the business for over 20 years.
“The flexibility offered by DMG Mori Finance played a key role in making the investment affordable. Payments can be structured to match the cash flow from contracts, so arrangements can include no deposit, delays in the start date for payments or payments which ramp up to suit earnings growth.”
Contracts can be written to suit the length of a project so, for example, a three-year contract would be matched with a three-year leasing agreement; this enables customer to make an informed choice and ‘future proof’ his business. The company can simply hand the machine back, pay the outstanding amount to purchase it or can upgrade to a new, different machine to take advantage of the latest developments in cutting techniques and the changing requirements of his company.
In addition to writing contracts in pounds sterling, DMG Mori Finance can to write leasing contracts in euros or US dollars, a facility suited to UK customers exporting and collecting income in those currencies. This can make a significant difference, protecting purchasers from currency fluctuations.
And as DMG Mori Finance has a clear understanding of the residual values of its machines, it can make the monthly cost highly competitive, enabling companies to install more advanced machinery than would otherwise be possible, while at the same time taking advantage of the expertise of DMG Mori engineers to automate and innovate processes for maximum productivity, delivering significantly better results than originally envisaged.
Additionally, items such as preventative maintenance can be written into the lease as can equipment such as a rotary fourth axis or metrology equipment from a third-party supplier.
Many companies in the UK have already seen the benefits DMG Mori Finance can bring, the company says, allowing them to grow their businesses.
