Workshop equipment in the automotive sector

19 SUBSIDIARIES
5 MILLION EURO
VOLUME OF INVESTMENTS
4 LEASE SCHEDULES

Challenge: Asset acquisition for a workshop has not been centralized. It stands at about 5 million dollars per year. The number of different financing partners leads to lack of oversight and higher administrative expenses.

Solution: Using TESMA®, uniform ordering processes are instituted for all subsidiaries within a frame lease agreement. The investments are bundled quarterly, so only four lease schedules must be administrated per year. Financial efficiency is markedly increased.

Customer benefits: Standardized ordering and financing concept for all subsidiaries. Homogeneous processes for suppliers and leasing company. Minimized administrative expenses.

WORKSHOP EQUIPMENT OF AN AUTOMOBILE MANUFACTURER IN SOUTHERN GERMANY

REDUCED
ADIMINISTRATIVE
COSTS
AUTOMOTIVE
INCREASED FINANCING
EFFICIENCY

Challenge: To cut administration costs by standardizing order and financing plans for subsidiaries.

Solution: By bundling investments quarterly, the same order processes and standardized shopping baskets with different item categories and different suppliers was created.

Customer benefits: Administration costs were significantly cut and financing efficiency was increased.

COMPANY PRODUCTION LINE

EFFICIENT FINANCING
OF TOOL COSTS
PRODUCTION
SYNCHRONIZATION
OF INCOME AND EXPENSE

Challenge: The company must finance in advance tool and machine costs for all OEM until start of production (SoP). Revenue from the job will be generated exclusively on the basis of actual output. The enormous size of the investment was a hazard to growth targets.

Solution: Bundling of the individual investment components into a flexible financing structure, including pre-financing until SoP. Establishment of an off-balance sheet pay-per-production model.

Costumer benefits: Clear synchronization of income and expenditure. More financial leeway through refinancing syndicated by a bank pool.

REPLACEMENT DIE CUTTER FOR SECURING PRODUCTION

COSTUMER
COST CAPPING
CARDBOARD
INDUSTRY
NO INVESTMENT
RISK DESPITE ACQUISITION

Challenge: A cardboard manufacturer needed a new die cutter to secure production and to process additional orders. Possible amortization after five years came to 1.4 million dollar. The price of the die cutter came to 2.8 million dollar, but the budget to only 1.4 million dollar.

Solution: A finance lease in which the charging of costs amounts to a maximum of 1.4 million euro over five years. Once the lease period elapses the die can continue to be used, be bought or returned. The ending rate will fall due upon return. However, successful treatment of the die by CHG-MERIDIAN and its partners can reduce the ending rate.

Costumer benefits: At an estimated machine value of approx. 75 percent after five years, the customer bears no investment risk.