On the occasion of AED Rent’s 25th anniversary, the company confirmed the launch of AED Lease, allowing audio-visual companies to innovate while maintaining a healthy cash-flow.
At press time, AED Lease concluded major lease contracts with companies in Germany, Switzerland, Spain and the Benelux, for a total value of over €3 million. Following the 2008 crisis’s business fluctuations, AED Rent took over equipment from European rental companies having difficulties. In a sales-and-lease-back agreement, AED Rent bought the company’s inventory on condition the company had to rent all of its equipment exclusively with AED Rent. “This idea was projected as an embryo for AED’s leasing operation; looking for a solid financial partner, investment companies ING Corporate Investments and Phifin came to reinforce AED Rent in September last year, paving the way for AED Lease,” explains AED Rent CEO Glenn Roggeman. To meet the professional rental industry’s need for up-to-date equipment at reasonable rates AED Lease elaborated a revolutionary system allowing their clients to invest in new gear of their own choice and continue to do viable business at the same time. “With just an initial advance of the total investment value and the monthly payment of 1.5% of the total lease value we offer a unique opportunity for rental companies wanting to invest without their cash-flow being affected,” calculates Martufi, business development manager with AED Rent. “After four years, the client has been renting out the equipment, generating money – it’s up to him to decide whether to buy the equipment (opening new fiscal opportunities while debiting investments) or return it to us. AED Rent has a vast secondhand fleet network – we know the market value of brands like JBL, L-Acoustics, Clay Paky or MA Lighting, that’s what our core business is.” “For companies depending on seasonal peaks like rental companies for touring business, finding fresh money for new investments is not evident,” explains Eddy Degreef (pictured), managing director of AED Lease. “And, with the upcoming Basel III regulations, strengthening bank capital requirements and introducing new regulatory requirements on bank liquidity and bank leverage, banks are less into allowing credit lines. The problem is not so stringent with homes or luxury cars, with a more or less fixed security value. But what do banks know about amplifiers, speakers or lighting?” According to Martufi, the key issue with AED Lease is that the company has a different approach with an asset based credit check rather than a company balance based credit check. “The equipment, consisting of market standard brands, is our main collateral for the lease operation – AED Lease’s profit lies in the investment on capital and the re-sale market value,” concludes Martufi. With subsidiaries in The Netherlands, Germany, France and the U.K., Belgian dry-hire company AED Rent posts some 85% of the group’s turnover abroad. Recent investments worth over €10 million in professional audio equipment Sennheiser, JBL, L-Acoustics) further strengthen the company’s position as pan-European equipment banker.
Marc Maes www.aedrent.be