6th October 2009
Oak Leasing hits financial press
From October's Leasing Life
Brokerage Oak Leasing has established two new vendor programmes in the last month,as part of its strategy to pursue manufacturer and distributor relationships in the middle ticket equipment market.
Most recent was an agreement with CFM, a Berkshire based supplier of printing and flexible material converting machinery, that represents a number of major European manufacturers. CFM chose Oak as its funding partner for the UK after finding the broker online. Whereas CFM had previously made use of asset finance, it had been on the basis of occasional deals with a number of different
providers.
According to Oak managing director
John Barter, CFM made the choice based on Oak’s “straightforward” approach to business and “truthfulness” concerning underwriting. Barter anticipates that most of Oak’s vendor business will be done with sales in the £80,000 to£300,000 (€87,157 to €326,857) range, although CFM occasionally deals
with equipment worth over £1 million. Financial products offered will include
lease rental, hire purchase and operating lease.
Colin Farrant, CFM’s managing director, commented that the leasing sales model offered a perfect fit for the plant industry, given high levels of customer concern overcashflow.
“At present, most machinery is sold at a
set price, with consequent debates over discounts,”
Farrant added.
“If customers are presented with a monthly
rental, it eliminates this aspect of the sales
process, and allows them to more effectively
decide whether a machine will pay for
itself on an ongoing basis.”
Four weeks prior to establishing the CFM relationship, Oak was chosen as European leasing partner for American chromatograph manufacturer Semba Bioscience – amove that further demonstrates the broker’sability to do business outside the UK. Semba had been looking to expand sales
into Europe for some time, said Barter, and made the decision to use Oak-sourced leasing as a sales tool for equipment between
£25,000 and £100,000.
In its American business, Semba operates an online leasing system with partner Crest Capital. Oak, which is very keen to develop its online marketing strategy, is considering implementing a similar programme “in the near future”.
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