DMG Mori Finance (www.dmgmori.com) has been structured to allow UK engineering companies to upgrade their machining technology at an affordable cost.

Running in Germany since 2007, its introduction in the UK market is said to have resulted in a step change in the way in which machine tools can be financed.

Traditionally, a lending assessment is based on historical financial information, with little credence placed on the positive effect of a new machine tool to a business; this can result in less than favourable terms being offered.

DMG Mori Finance says its intrinsic knowledge and understanding of the industry has enabled it to take a future-related view of machine tool investment.

James Clist, director (UK business) at DMG Mori Finance, said: “We have recently concluded a successful leasing arrangement with a small but very stable sub-contractor that has been in the business for over 20 years.

“The flexibility we offered played a key role in making the investment affordable. Payments can be structured to match the cash-flow from contracts, so arrangements can include no deposit, delays in the start date for payments, or payments that ramp up to suit earnings growth.

"Contracts can be written to suit the length of a project, so a three-year contract — for example — could be matched with a three-year leasing agreement that allows the customer to simply hand the machine back, pay the outstanding amount to purchase the machine or upgrade to a new machine to take advantage of the latest developments.

“Furthermore, because we have a clear understanding of the residual values of our machines, we can make the monthly costs highly competitive, enabling companies to install more-advanced machinery than would otherwise be possible.”