Equipment Manufacturer

Discover how Linxfour helps manufacturers offer usage-based payment options without unwanted risks and increase equipment sales and maintenance revenues.

Discover how Linxfour helps manufacturers offer usage-based payment options without unwanted risks. Linxfour’s approach is to offer a full-service partnership and allows equipment manufacturers to concentrate on core competencies. Experience the Linxfour advantage today.

Industry 4.0 meets finance

Why choose Pay-per-Use Financing?

Choosing Linxfour's Pay-per-Use model offers significant advantages for equipment manufacturers without operational changes. Manufacturers sell equipment directly to Linxfour, rather than dealing with equipment operators. In this arrangement they receive the full selling price and sales commissions upfront, eliminating credit and underutilization risks. Additionally, Pay-per-Use financing requires operators to sign long-term maintenance contracts, increasing after-sales revenue.

Frequently asked questions about Linxfour financing

Linxfour finances companies in most sectors, with few exceptions. These include aviation (aircraft), the defence industry and gambling.

Linxfour finances equipment that meets standard leasing criteria. These are machines with a low degree of customisation or those easily reconfigured / refurbished for use by a third party. In addition, the machines must be easy to dismantle for transport to another location. An active secondary market for the machine in question is also a prerequisite.

The project volume financed is from €200,000 to €10 million. Larger projects up to €25m can be implemented across fund tranches. Those above €30m together with international banking partners.

By working with Linxfour, equipment manufacturer can offer their customers Pay-per-Use and flexible financing models without assuming the credit risk of financing themselves. Linxfour bears the default risk – there won't be late payments or unpaid deposits.

The equipment manufacturer receives the full purchase price (100%) after the end customer has accepted the machine without defects. For the sales team, the payment timing is similar to a direct sale. Financing is handled by Linxfour in the background.

No, generally not. The equipment manufacturer bears no economic risk in the event of underutilisation or early termination of the contract. Some economic risks exists if the manufacturer provides a residual value guarantee, in order to control the return of machines and subsequent use. This risk is limited to the residual value guaranteed. As residual values are well below the expected future market value, this also represents an opportunity to profit from asset realisation.

Generally, transport and installation costs are not financed, as they do not represent collateral value. These items are invoiced separately to the operator and passed through to the OEM.

No, the financing has no influence on list prices or the manufacturer's discount policy. The equipment price is negotiated exclusively between the OEM and the customer. Linxfour finances the price agreed and pays it in full after acceptance of the machine.

Yes. Linxfour actively supports the sales team with structuring expertise, training and an online calculator to create indicative offers in PDF format. On request, we provide support for PR and marketing activities. The aim is to simplify the sales process and increase the likelihood of closing transactions.

Linxfour generally offers its financing solutions in the European Union (without Italy, Croatia and Bulgaria), the United Kingdom and Switzerland.

Mattias Bertoldi Managing Director Washtec

Testimonials

Pay-per-Use from Linxfour is an interesting financing model. Our customers have demanded this utilization-oriented form of financing more and more, especially since the 2022 energy crisis."

Our current Pay-per-Use customers have had very positive experiences with Linxfour's financing model so far, both in the course of the consultation, during processing and ongoing support. The off-balance sheet financing is one of the biggest advantages for our customers."

If the operator can share some risk, that is always a good thing. The carwash industry has a natural fluctuation due to weather conditions. So, this is often an issue for operators. After all, the risk of a rainy peak month with no revenue and fixed financing costs makes extra financial security quite desirable. With Pay-per-Wash in cooperation with Linxfour we are now able to offer a payment option to mitigate this risk."

Especially in times of unpredictable and volatile market demand, measures to minimise the risk of underutilisation come increasingly into focus. flexPay from KraussMaffei and Linxfour provides an effective solution."

At present, issues such as inflation and rising energy prices are dominating everyday business life. With "Heat-Exchange-as-a-Service" users can integrate heat exchange solutions for heat recovery into their processes in a plannable and cost-efficient manner without having to invest CAPEX through the cooperation with Linxfour. It was important to us to ensure a maximum product lifecycle and that our customers can rely on a carefree heat exchange service so that they can focus on their core processes."

The biggest advantage lies in the variable risk models. Customers decide themselves whether to hedge the under-utilisation of their investment, thanks to Linxfour’s Pay-per-Use model. Particularly interesting, therefore, is that customers have lower financing costs when their equipment is underutilized."