BNP Paribas Leasing Solutions is a subsidiary of BNP Paribas, one of the world’s most solid banks. Having emerged from the financial crisis of 2008-09 stronger than before, it is able to rely on the financial strength and stability of its parent to help suppliers of vending equipment win new customers despite the economic outlook. It has partnered with a number of vending suppliers over the last ten years and has a dedicated team of account managers that specialise in this market.

Given the market focus and expertise, the company has a unique financial solution that caters for the specific needs of the vending operator. Known as Master Vend Plan, this product combines the cost of the machine rental, servicing costs and ingredients in to a single, periodic payment. Master Vend Plan simplifies the sales process, increases machine sales and reduces the operator’s administration cost base.

From a customer perspective, this solution is an extremely simple and transparent method to procure new vending equipment. Presented as an all inclusive ‘cost-per-vend’ the customer has a fixed cost outlay for the term of the agreement. Additional machines can be added to the contract (or removed) and the usage volume can be renegotiated at any point. The customer has the further benefit of a single billing source for the full equipment fleet.

Jo Quantrill leads the Vending division at BNP Paribas Leasing Solutions. From experience she notes that customers like the simplicity and flexibility of the Master Vend Plan Solution adding, “Customers of all sizes can benefit from this solution as it provides total flexibility around volume commitment per single machine or a combined fleet of machines. Furthermore, from an operator perspective, what better way to sell the total solution than to calculate an all-inclusive cost-per-vend and present this to the customer as their unit cost for the life of the contract. It really helps to simplify the budget approval process and increase machine placement.”

The company also offers additional services to partners such as access to an online credit decision tool, marketing support; training and generous incentives that reward finance sales. It has developed a reputation for offering best-in-class service, as endorsed by winning the Business Moneyfacts award for “Best Service from an Asset Finance Provider” in 2010 and 2011.

Are things looking up?

Kevin Reed, National Sales Manager, Vending, Siemens Financial Services commented: “During the global economic crisis, the vending market experienced a downturn, in that customers became reluctant to invest in new equipment, choosing instead to continue with existing or refurbished models. This trend is starting to reverse as the economy picks up pace.  Nevertheless, the end-user customer has been greatly influenced by the recent downturn, and remains only cautiously optimistic in their investment and expenditure outlook for 2012.  This is serving to highlight the commercial imperative of using flexible financing to close deals.

“With the gradual economic recovery under way in the UK, albeit at a very slow pace, we are seeing definite evidence of end-user customers making new investment to upgrade or replace out-dated machines by the end of this year or beginning of 2012. In parallel, we have just released the latest edition of the SFS Business Investment Confidence Index, which clearly indicates a strongly growing desire amongst British businesses to increase their capital expenditure on business equipment and infrastructure for 2011. This Index, which has been tracking business investment confidence since 2007, has been shown to be an accurate predictor of the direction of actual annual investment trends.

“At this year’s AVEX, innovative manufacturers showcased new vending machines with touch screen technology. The introduction of such equipment inspired a great deal of interest, but will still require flexible financing arrangements to encourage customers to upgrade and be able to take advantage of the latest technology. The desire to invest is still tempered by post-recession caution, but if financing can keep monthly outgoings level, possibly by increasing the financing term equipment, then obstacles to investment tend to disappear. Encouragingly for the industry, at SFS, we have seen acceptances of new credit applications rise materially over the last six months. So the indicators are that the industry in 2011 has turned the corner, and now has an established platform by which to realise strong positive growth, supported by flexible financing options.

“According to the latest figures published by the UK’s Finance and Leasing Association, UK businesses across all sectors are heavily dependent on lease finance to assist with investment in new business equipment, including vending machines. Almost £20.4 billion of new capital expenditure in 2010 was financed on lease. With the restrictive lending practices now imposed by many banks, businesses are more than ever looking to independent finance providers to help them with their investment strategy.”

Printer friendly version

Email this article to a friend

Bookmark this

---