Innovative financing structures for construction machinery

Financiers of construction equipment are fairly conservative, and that's putting it mildly. It often inhibits the innovativeness of entrepreneurs. Beequip proves that (re)financing construction equipment can be done differently and is not averse to innovations. They know the value of (heavy) equipment and offer flexible financing solutions.

Beequip is breaking with existing traditions in finance land. "We focus exclusively on financing construction equipment and look at equipment in a completely different way," says Rik van Hal, Lead Construction and equipment expert at Beequip. With years of background at Caterpillar, he knows exactly how to value construction equipment. We offer financing solutions starting at 15,000 euros. This means that both the gardener on the corner and the large infrastructure contractor can come to us, and from starter to seasoned entrepreneur. After all, we put the equipment first and not the annual figures." 

Innovating together

Beequip was founded with the goal of helping entrepreneurs do business in an accessible way. They have been doing this very successfully for 10 years. "We are now part of the American investment company Apollo. Because we know exactly the value of equipment, we are able to finance innovative projects as well," Van Hal continues. "Traditional financial institutions won't start there, because they can't assess the value of the equipment. They will reject anything 'different,' and that inhibits the power of innovation that is so important to the industry. So you're really doing business together." Beequip now sees innovation primarily in zero emission equipment. "A lot of entrepreneurs are looking for the right solution for sustainable projects, and that is often pioneering in their field. The winning machines are not there yet and you also have to provide the possibilities to recharge. So we see more and more batteries on the construction site. Our customers are actively working on this. Soon the bauma will take place in Munich, you will see that it is full of new electric equipment here, that has gone very fast in a few years."

Freeing up capital to invest

Another great example of a special financing structure is that for the demolition sector. "Purchasing a demolition machine is one thing, but often it doesn't stop there," Van Hal knows. "The machine is additionally equipped with a heavier counterweight or an extended boom. Aspects that increase value, but which often have to be paid for by the customer from his own resources. Suppose such a machine has a purchase value of 5 tons and is then rebuilt for another 5 tons from its own resources. This therefore gives the machine a financial value of 1 million euros. We use a sale-and-lease-back construction in which we finance 9 tons, so that the entrepreneur again has the necessary cash flow to continue growing. In this way, we also refinance, for example, an existing fleet that may have been written off as book value but still has some value. We then enter into financing so that the entrepreneur has free working capital to make further investments. It is precisely these innovative financing solutions that make us different from major banks."

It is important to move very quickly. Often an entrepreneur has won the contract and the equipment needs to be there. "We see ourselves as a fintech with a lot of technology and clout in-house to get processes done quickly," Van Hal states. "In many cases, financing is arranged within 72 hours. We also finance used equipment and that can be up to 750,000 euros virtually without annual figures. So start-ups are also welcome." And speaking of used equipment, Beequip operates its own marketplace on which many hundreds of suppliers advertise equipment. "Financing is then often arranged in no time. Incidentally, we also use the platform ourselves to relocate equipment that sometimes comes out of lease earlier. Because we don't bother with that either."