GE Capital, one of Europe's leading financial services companies, today announced that it is to offer distribution financing to European agricultural machinery manufacturers. The company is already in talks with a number of pan-European manufacturers regarding the implementation of distribution finance agreements.
By working with GE Capital, agricultural machinery manufacturers will be able to take full advantage of the pan-European solutions available and access a planned $350MM of new liquidity in the market in 2010. GE Capital has a long history of providing asset-based financing solutions, with a market-leading distribution finance offer, and has great experience across a range of sectors including marine, recreational vehicles, motorsports, industrial equipment and technology. The business financed $7bn of assets across Europe in 2009.
In distribution finance, assets are financed from the time they leave the factory until dealers in the manufacturer's distribution channel sell them to end customers. The programme will provide agricultural equipment manufacturers with guaranteed payment for shipped product and, therefore, the liquidity they need to focus on their core business -- designing, manufacturing and selling their products. Meanwhile, dealers will benefit from reduced carrying costs and enhanced capacity to hold the right product to meet customer demand.
"Distribution finance is particularly relevant to agricultural machinery manufacturers in the current economic environment," said Andrew Stafferton, Industry Leader for Agricultural Products at GE Capital's Commercial Distribution Finance business. "Not only is the industry characterised by well established dealer networks, our distribution finance programmes can maximise efficiencies for manufacturers, flattening out the effects of seasonality and increasing stock turn."
Will Spiers
Michael Goodbody
GE Capital EMEA
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