16.01.2019

Genie launches variable repayment finance plan

Genie has announced the new Seasonal Capital Repayment finance programme that provides customers with greater flexibility regarding repayments, reducing payments when business is slow and increasing them when cash flow is strong.

The company announcement stated: “The Terex Seasonal Capital Repayments programme allows customers to pay less at slower times when they need extra cash flow to sustain activity, invest or expand their business. They then pay the difference when business hits its forecast highs.”

Jacco de Kluijver vice president of sales & marketing for the Europe, Africa and Middle East region said: “Seasonality often leads to a mismatch between income and expenditure at different times of the year depending on a company’s geographical location. In north European countries for example, the low season generally coincides with the cold, wet winter months, from November to March. In others, income tends to decrease in May due to recurrent bank holidays, or from July to August, due to a combination of extremely hot temperatures and reduced resources during annual summer vacations.”

Stuart McDowall European director for Terex Financial Services added: “Finding the right balance between decreasing revenues and paying fixed costs is a common issue for many rental companies. The new Terex Seasonal Capital Repayments programme aims to help customers plan their investments in advance with a financing schedule tailored to provide the extra support they need to sustain their cash flow when their business needs it most.”

Comments

MS
Long story short:

We are offering equipment on 0% finance, so companies are expanding fleets in thousands, then they are struggling to utilize all that stuff, so they drag the price down (better put machine on hire for 50/week than let it sit in the dep!) and can't even make money for finance payments.

Managment's and sales reps of hire companies have finished their education on primary school, so math its not their strong side. All they get in consideration is machine price/hire rate, not calculating breakdown times, parts, labour, fuel, maintenance etc.
Let me remind you: Mercedes, BMW are not making money on cars anymore. Money comes from service and parts later.

I'm from third world country.
Asked friend (hire desk controller) from my old company about hire rates and compared them to rates here.

Turns out that in my 3rd world country, we have hire rates 20-30% higher than here - with labour, rent, electric power 4 times cheaper than in UK!

17 Jan 2019

Grumpy
Is this what we need?
Is this adding more support to the irresponsible?

16 Jan 2019
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