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.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
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.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataColin 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
over cashflow.
“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 – a move that
further demonstrates the broker’s ability 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”.
• CFM, based in Newbury, Berkshire, is
a UK agent for overseas manufacturers of printing, converting and
packaging equipment. This typically means machinery designed to
convert rolls of film, paper or other flexible materials into
products such as bags, packaging materials and disposable items
(for example, polyethylene gloves and shoe covers).
The company represents 12 principal
manufacturers, including major French producer DCM. Most recently,
the company has begun working with Turkish manufacturer Tifmak – a
brand that has seen good sales performance due to its highly
competitive pricing. CFM’s staff have, between them, over a century
of experience in the converting machinery market.
