A multitude of financing solutions

Within the Earth, Road and Hydraulic Engineering sector, large investments are often involved. Smaller SMEs also need to have cranes, bulldozers and shovels in order to do their work. Increasingly, they are turning to financing companies, which make the necessary purchases possible quickly and adequately.

Activum Finance is one such financing company, and it recognizes the problems faced by GWW workers. "Often they are small-scale companies with about four to five employees," knows Casper J. Barendse, partner of Activum Finance. "But the investments they have to make are often large. The purchase of trucks, pontoons and transport equipment involves substantial amounts of money. And that's not to mention the investments in all the related issues such as surveying and remotely operated equipment - the more high-tech equipment that is also becoming increasingly important." 

Fast and adequate

Land, Road and Hydraulic Engineering is one of the sectors Activum Finance is committed to. By being approachable and quick to take action, it encourages GWW'ers to at least get in touch in case of financing issues. "We know the industry," says Duncan Dirkzwager, partner of Activum Finance. "We know the equipment needed and almost always the applicant already knows exactly what equipment he needs. Then we can act immediately. In most cases we can provide a quotation immediately after the telephone request. If this also requires an interview, this is generally scheduled at very short notice."

Object is collateral

Barendse identifies that many applicants have already experienced frustration with traditional funding agencies such as banks. They couldn't get hold of the relevant department, couldn't schedule an appointment until later, or couldn't get the financing they wanted. "Banks link collateral," Barendse says of the latter. "If you have a mortgage, an RC loan and stock financing, then all the collateral is going to weigh in for your lease which basically should only concern the financed property. At Activum Finance, we only look at the investment. Only the object is collateral."

Divergent possibilities

This is not to say that all applications at Activum Finance are financed in the same way. For starters, there are several financing options, including financial lease and operational lease. "In short, financial lease involves a loan with the purchased asset as security," Dirkzwager explains. "With operational lease, we buy the desired asset and the financier becomes the legal and economic owner. In this case, our client rents the asset from the leasing company." Activum Finance has a network of some 40 financiers. "We act as an advisor and mediator. We weigh the options against each other and select the most favorable option for the customer."

Just for innovations

As familiar as Activum Finance is with the regular equipment from the ground, road and water construction industry, it too receives requests for unfamiliar equipment from time to time.   

"This happened recently for a water construction project near Amsterdam," Barendse says. "The entrepreneur had to perform underwater welding work here and needed an 'ROV' or Remotely Operated Vehicle to do so. Then you've come to the right place. We know that developments within the GWW industry are rapid and that precisely these innovative companies deserve support. It requires more creativity, but at the same time this makes our hearts beat faster." 

Since 2008

Activum Finance has now been in existence for 12 years and in that time has helped over 2,500 customers with equipment leasing solutions with a total investment sum of over €700 million. These included excavators, trailers, offshore workboats and metalworking machines. But also robots with 3D measurement techniques and automatic excavators with GPS. To this end, it has established ties with independent financiers in the Netherlands and Belgium. Among these financiers, it selects the offer with the lowest interest rate, the longest term, the right form of financing, in short, the best conditions or the most appropriate solution for the given requirement.

Growing team of experts

As the number of clients grows, so does the number of employees. Activum Finance's team currently consists of six experienced individuals with diverse specialties. Team members help clients quickly, clearly and solution-focused. Together, they are committed to making the process leading to the financing of business assets as quick and easy as possible. At the same time, they are responding to the retreat of traditional financiers, the first signs of which were evident during the 2008 financial crisis. "That's when banks started closing their counters," Dirkzwager remembers. "Even before any offer was available online for equipment leasing. That was the downright reason for us to become active and offer financing online."

Holly horses

In 2008, the use of leasing as an equipment financing tool was only 5%, much lower than abroad. Meanwhile, that percentage is growing annually. This makes it clear that leasing is a highly desirable form of financing. "Of course we primarily go for the customer," says Barendse. "We look for the best solution for him. But we also have our own hobbyhorses. As I said, applications for innovative business assets can count on our passionate commitment. But if you want to appeal to our real passion, you have to come up with innovative developments in environmental management. Are you looking for funding for innovations related to recycling and CO₂-emissions reduction, then you have us on board. We would like to actively think about that. It's something that, by definition, requires creativity, and that is strong within our team!"