DMG Mori Finance is enabling UK engineering companies to upgrade their machining technology at an affordable cost. Running in Germany since 2007, its introduction into the UK market will offer new financing options for buyers.
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 reality of these limitations results in 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, very difficult.
The advent of DMG Mori Finance and its intrinsic knowledge and understanding of the industry has enabled it to take a future related view on machine tool investment. Instead of concentrating almost exclusively on historic financials, DMG Mori Finance is able to place priority on the intended outcome of the investment, as it is funded by DMG Mori itself.
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 we were able to offer 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 which enables the customer to make an informed choice and futureproof the business. The customer can simply hand the machine back, pay the outstanding amount to purchase the machine or upgrade to a new different machine to take advantage of the latest developments in cutting techniques and the changing requirements of the business.
In addition to writing contracts in Pounds Sterling, DMG Mori Finance also has the ability to write leasing contracts in Euros or US dollars, a facility ideally suited to UK customers exporting and collecting income in those currencies. This offers protection from currency fluctuations.
Furthermore, DMG Mori Finance has a clear understanding of the residual values of its machines which can make the monthly cost highly competitive, enabling companies to install more advanced machinery than would otherwise be possible.
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, installed as part of the overall package.
DMG Mori UK www.dmgmori.com
