Click & FInance.png

Case Study 

Off-balance-sheet acquisition of equipment generates new sales opportunities for Original Equipment Manufacturers

„Pay-per-Use leasing creates new chances for accounting and tax plannng“

The Problem 

Machine user
In order to not burden the equity ratio due to the new IFRS16 rules, the machine user cannot or does not want to purchase a new machine.

Machine manufacturer
Seeks ways to provide machines to the machine user without having to capitalize the new machine on the user's balance sheet or on its own.

Traditional financiers
Do not offer the possibility of financing machines in such a way that the machine does not have to be capitalized in the balance sheet of the machine user or manufacturer, as it is not possible for them to assume the economic risk.

 

Copy%20of%20Untitled_edited.jpg
Bank%20-%20iPad%20solution%20compressed_

The Solution

linx4 Pay-per-Use Financial Services buys the machine from the machine manufacturer at the agreed purchase price, allowing the machine manufacturer to immediately obtain the cash flow out of the purchase. The machine is than made available to the machine user. Due to the Pay-per-Use contract structure with the transfer of the utilization risk to linx4, even under IFR16 only a fraction of the purchase price has to be capitalized in the balance-sheet of the machine user.

Important findings:

  • Machine manufacturer immediately recognizez 100% of the revenue from the sale of the machine, as in a traditional sales process

  • No additional risk is transferred to the machine manufacturer

  • Machine user only has to capitalize a fraction of the purchase price

  • The main utilization risk will be transfered to linx4. The machine will also be capitalized in the balance-sheet of linx4

Why Pay-per-Use leasing? 

Images Case Study Banners (1).png

Sell more equipment with flexible leasing.

Increase business revenue by lowering your customer's Initial investment costs by offering usage-based opex-oriented financing options and entering new target markets risk-free.

Images Case Study Banners (1).png

Instantly receive 100% of your sale amount.

Working with linx4's equipment fund backed by industry-leading players, guarantees  that you receive the full amount of your equipment sale while your customers profits from Pay-per-Use payment.

Images Case Study Banners (1).png

Upsell customer's with long-term service agreements.

Increase new revenue sources by creating contractual terms that require your customers to utilize your equipment services over their machine’s useful life.

Images Case Study Banners (1).png

Managing secondary market & get actionable performance data.

Managing the secondary market of your equipment and profit from high quality in a second life cycle. Insights about your machinery’s performance, like uptimes and downtimes will help you to improve the quality of your equipment and reach your sustainability goals.

About linx4

linx4 helps OEMs sell more machines by providing equipment manufacturers with the most secure data management platform for adopting usage-based financing and accompanying Pay-per-Use models. Our end-to-end encrypted solution permits secure data sharing with third parties worry-free and without compromising information quality. Industry-leading financial and insurance industry partnerships position linx4 as the industrial sector’s risk-free provider for Pay-per-Use digitalization.

 

linx4: Your one-stop usage-based financing and data management solution