Industrial Washing Case Study
Usage-based financing enabled an easy transition into an equipment-as-a-service business model.
An industrial washing equipment builder encountered the market trend of his costume not wanting to fully invest in new machinery since the washing procedure is often not apart of the main production process.
Therefore, these three key questions had to be addressed:
1. How can one pre-finance equipment if it will be rented in the future?
2. How can one reduce negative balance sheet effects?
3. How can the machine builder reduce their entrepreneurial risk?
The equipment builder offered his machine alongside linx4's pay-per-use model where now the company took care of the customer's entire washing process including their machine operations. linx4 also collected the data needed to enable on-site production and permitted the successful transition for pre-financing the equipment.
The industrial washing equipment builder successfully transformed his business model based on transparent data and usage-based equipment financing. Based on the data generated, the equipment buyer also analyzes customer profitability.
Usage-based equipment financing and reliable equipment data
were used to successfully transform a traditional business model
into an Equipment-as-a-Service business model.
The equipment builders profited from the machine's entire useful life.
The customer made the desirable switch from CAPEX to OPEX.
OEMs encountered less risk in their business.