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Published Mar 4, 2021
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What happens when Pay-per-Use meets industrial fund?

Articles and press releases about new flexible financing models for equipment are becoming more frequent. This is hardly surprising, given that with an export volume of around 60 billion euros – which of total exports - equivalent to 40 percent - and annual investments of 2.6 billion euros, the equipment manufacturing industry is one of Austria's most important industrial sectors.

Why do manufacturers have empty order books?

Due the crisis-ridden year 2020 many OEMs are facing empty order books. The mechanical engineering sector is facing the same problem as it has in previous years: Financing new manufacturing equipment. Equipment buyers are confronted with high investment hurdles and there of often postpone investment decisions and work longer with old, inefficient machines.

The consequence is a declinement of new machinery and equipment purchases and, as a result, empty order books on the part of the OEMs.

We at Linxfour provide with our pay-per-use leasing a solution for such crisis leading periods. Clients get the change to put themselves in a better position at the market, as they can solve costs and invest in new equipment at the same time.

Whats happening when Pay-per-Use meets industrial funds ?

Linxfour combines Industrial IoT technology with modern financing solutions like an investment fund for institutional investors.

Paul Bruckberger, CEO and Co-Founder of Linxfour, says: "Traditional financing such as leasing or loan financing can no longer cushion these slumps. The investment risk remains solely with the equipment operator due to rigid repayment rates. The goal now is to rethink business processes and develop intelligent financing models."

The innovative solution comes from Austria: Pay-per-use financing offers a flexible alternative to traditional financing methods by means of a machine fund. As with other pay-per-use models, the amount of the repayment installments also depends on the use of the machine

There is a two-tier-society!

In a joint project of a specialist group of the Association of Austrian Sales Managers (VÖVM) with Linxfour, the flexible financing of new machine acquisitions is an ongoing topic. Christian Eberhardt-Motzelt, member of the board of VÖVM and Area Sales Manager at ZwickRoell, says:

Christian Eberhardt-Motzelt

"The financig an increasingly important topic. In the exchange with around 100 sales managers within the framework of VÖVM, it becomes apparent that there is a "two-tier society" here. Some SMEs are devoting a great deal of attention to this topic and are thus able to differentiate themselves from their customers. However, many customers have not made a strategic assessment or decision on modern financing models for capital goods - which makes it even more difficult to increase sales via this instrument even more difficult."

What are the advantages of Pay-per-Use Leasing for your company and customers?

Operators not only optimize their cash flow, but also minimize the investment risk at the same time. Pay-per-use is also an alternative for machine manufacturers, which want to enter the pay-per-use market because the revenue is recognized immediately - thanks to institutional investors. For financial investors, a new asset class opens up.

OEMs want to adapt to the modern needs of their existing customers and reduce their investment hurdles to purchase equipment. As a result, you position your company to increase revenues and establish better relationships with your customers.

All the advantages of pay-per-use financing at a glance:

Final Thoughts

Overall, the future looks bright for new innovatve and independend financial options. It’s time to push more tailor-made solutions and to meet the evolving demands of existing and new customers. Together we can archieve a lot and sustainably improve the industry through our One-Stop-Solution. Linxfour is your expert when it comes to Pay-per-Use leasing.

About Linxfour
Linxfour is a European leasing company, based in Austria, providing Pay-per-Use financing solutions to manufacturing companies. Using proprietary IIoT (Industrial Internet of Things) technology and AI-driven risk management, we are unique in underwriting true utilisation risk. Operating across different countries and industries, we are committed to helping businesses finance equipment with our unparalleled solution.

Linxfour: Transforming Equipment Finance