Pulp and Paper Case Study

Leveraging usage-based financing to sell more equipment

in the pulp and paper industry.

PROBLEM

Problem

 

An equipment builder from the pulp and paper industry was struggling to sell additional machinery due to high investment costs and the various financing barriers the machine buyer encountered. 


Therefore, these two key questions must be addressed:

1. How can the customer overcome their high capital investment hurdle?

2. How can the equipment builder implement and test a flexible payment model without encountering massive internal changes?

SOLUTION

Solution

 

linx4 stepped in to help the equipment builder offer their customer an all-inclusive usage-based financing solution. With linx4, the equipment builder had access to flexible financing options and the right tools for the customer to visualize how their per-unit production would facilitate variable pay-per-use installments. Additionally, linx4's end-to-end encrypted data collection methods allowed for accurate and transparent repayment calculations. 

OUTCOME

Outcome

 

The lower upfront capital investment and transparent financing costs motivated the machine buyer to purchase new equipment earlier. These supporting factors also helped their company calculate the actual unit costs more precisely and allowed the company to consider ramp-up phases as well as planned shutdowns in his cash-flow planning.

Key take-aways

linx4 created a win-win-win situation between

the equipment builder, equipment buyer, and the financing bank.

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Equipment buyer profited from more flexible repayment rates as well as updated equipment.

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Equipment builder levereged usage-based financing to sell additional equipment.

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Financing bank aquired an additional costumer.

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