A number of lessors working in the
health care segment are now offering vendor finance programmes.
Among these is Dutch lessor De Lage Landen
(DLL), whose health care business is focused on vendor finance
programmes, says Steve Riggs, president of the global business.
Programmes are offered across the US and
Canada, as well as Australia, Asia and throughout Europe, he
said.
Riggs added: “Demand is very strong – in the
last three years, our European business has tripled.”
DLL divides its health care business into
treatment and related equipment, dental, veterinary and life
sciences and offers 36, 40 and 60-month terms to its clients, with
an average of 40 months.
The average deal size is about €50,000-€60,000,
although a number of deals rise above €1m, Riggs said.
He added: “Our primary objective is to follow
our vendors.
“However, the make up of some markets requires
us to go direct in order to win business – we go direct in South
Korea, the UK, and in Germany.
“We really like the industry segment and simply
do not want to give up market share in these countries to the large
captives.”
Siemens Financial Services also runs vendor
finance programmes in the health care segment, as does Scandinavian
company Nordea Finance, although both have said they are unable to
provide fuller details.
Jukka Salonen, CEO of Nordea, said: “We do have
vendor finance programmes – we are dealing with a couple of leading
suppliers.
“In the Nordic and Baltic environment, this
type of co-operation is increasing.”
Deutsche Leasing has a joint venture with a
major equipment company, specialising in health care.
Its health care finance business is currently
focused solely on Germany after a return to the market four years
ago.
GE Capital is also expected to expand its
presence in vendor finance within the health care segment by next
year.
