CED

October 2014

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42 | www.cedmag.com | Construction Equipment Distribution | October 2014 A Closer Look Few would debate the fact the construction industry has experienced some major shifts in how equipment is managed. Economic uncertainty has caused businesses to rethink purchasing and turn to leasing and rental to meet their needs and get the most use out of their assets. At the same time, anticipated new Accounting Standards being discussed and finalized by the International Financial Reporting Standards and Financial Accounting Standards Board are causing businesses to evaluate how they will purchase and finance assets in the future. A Vendor Finance Focus De Lage Landen (DLL), a fully-owned subsidiary of Rabo- bank, is intent on keeping abreast of these changes and looking for new ways to accommodate the needs of the market. Unlike some industry finance companies, De Lage Landen's focus is solely on vendor finance. Since 2001, they have had an active presence in the U.S. construction market. Tom Casey, vice president and general manager for the company's Construction, Transportation and Industrial Business Unit in the Americas Region believes that offers some specific advantages. "Because we support the manufacturer, dealers know they are talking with us in confidence. We are not going down the street to a competitor. When dealing with De Lage Landen, that deal is sacred," said Casey. Don Knackstedt, CFO of Hayden-Murphy Equipment, based in Minneapolis, Minn., concurs that DLL has a very strong alliance with manufacturers. "There is a high degree of credibility, trust and confidence that they know how to get the job done on the finance end." In the 2014 Monitor 100 Survey, De Lage Landen ranked No. 1 in new business volume among the Top 25 Vendor Finance companies in the U.S. for the third year in a row. The Monitor is a U.S. Leasing Industry publication. Construction Industry Expertise De Lage Landen offers a full suite of products and services including traditional loans and leases as well as asset-based working capital facilities, floor-plan facilities, and rental-fleet finance products. According to Knackst- edt, knowledge of the industry sets them apart from the competition. "I think the most important thing is their commit- ment to the heavy construction equipment business," he said. Hayden-Murphy uses De Lage Landen for retail and wholesale financing on both LBX excavators and Grove and Manitowoc cranes. "They are very tied-in. They understand the equipment and customers, and you know they will be in this industry for a long time. Other traditional sources such as banks sometimes get in and get out of it." Understanding the assets is another key factor. "Because they understand the equipment, they have a better appreciation for the values and the life of that piece of equipment," added Knackstedt. "It makes the process and the transaction very easy." According to Knackstedt, an independent finance source may not understand what the values are. "We'll give DLL the make and model number, and they know what we are talking about. They often know who the customer is." According to Knackstedt, understanding customer needs is just as important as understanding the equipment. "In a cold weather climate, a customer might need to have special payment terms. They might have to have months where they skip payments. You have to have a finance company that understands that and is willing to work for the customer." De Lage Landen is developing solutions to benefit the end- user, the dealer and the manufacturer in the construction equipment industry BY JOANNE COSTIN Forward-Looking Finance 1 Life Cycle Asset Management Tom Casey Lifecycle Asset Management challenges end-users and manufacturers to move away from thinking about owning assets and instead focuses on leasing the services the equipment provides. View the video at www.delagelanden.com

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