RE: I asked a question... on Friday....29 Jul 2018 19:54
providing the german end user can demonstrate that each machine delivered will generate enough cash to service the finance cost then this could have legs. I have seen and set up a deal whereby for example redt sell a machine to the germans and book that as a sale and a gross profit, redt have an arrangement with a leasing company such as Siemens who credit underwrite the german user. if ok, then the german user then sells the machine to siemens and signs a leaseback deal with them which requires the end user to service a monthly lease payment, which they do from cashflow generated by the machine. Siemens will be interested in the value of the machine and the strength of the cash generation. this is known as vendor finance leasing and is common for capital items with intrinsic resale value.