CUSTOMERS WANT LEASING OPTION
Dirk Groth says in the past the trend was to buy secondhand equipment but customers are now asking for the option of leasing which can be expensive, depending on country and/or the client, as banks and leasing companies have their own differing risk assessments for this country or that borrower. But with the appeal of off-balance sheet financing, many customers are more interested in leasing which of course increases the supplier’ s potential buy-back commitments. In the US, over 50% of all equipment is leased anyway, says Dennis Connors. Bernt Eriksson says most of Kalmar’ s machines are sold but are also available for short-term rental for peaking or back-up situations. Long term leasing is not common however due to the technical risks involved.
Dirk Groth says in the past the trend was to buy secondhand equipment but customers are now asking for the option of leasing which can be expensive, depending on country and/or the client, as banks and leasing companies have their own differing risk assessments for this country or that borrower. But with the appeal of off-balance sheet financing, many customers are more interested in leasing which of course increases the supplier' s potential buy-back commitments. In the US, over 50% of all equipment is leased anyway, says Dennis Connors. Bernt Eriksson says most of Kalmar' s machines are sold but are also available for short-term rental for peaking or back-up situations. Long term leasing is not common however due to the technical risks involved.
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