In economically challenging times, sufficient liquidity is an important basis for every entrepreneur to be able to make the necessary investments and set the course for the future of the company. TRACTO Finance GmbH supports its customers with flexible financing models.
For some time now, relatively high interest rates and a weakening economy have made many planned new investments more difficult for entrepreneurs for some time now. Higher costs, for example in purchasing or energy procurement, can quickly render plans obsolete and restrict financial scope, meaning that existing funds often cannot be used for investment, but must be allocated to other purposes.
Despite, or perhaps because of the challenging economic situation, many contractors are looking to broaden their base with a NODIG system in order to meet the growing demand from their customers. This is also due to the increasing desire of clients to use NODIG technology to not only save time and money, but also to reduce the impact on the environment, people and infrastructure. However, at the time of purchase, it is often uncertain how quickly a new system can be put into permanent use.
TRACTO Finance is more than just a financial service provider
For these and many other situations, TRACTO Finance GmbH, is a financial services provider that offers its customers solutions for new and used machines, ranging from loans and various leasing models such as operating leasing or hire purchase to the simple purchase of new products in instalments, and also accepts used machines as payment.
Torsten Wedi heads TRACTO Finance, which was established in April 2019, and is also responsible for the entire used machine business, rental and internal reconditioning of purchased machines. Together with his colleagues, he has continuously expanded the service portfolio over the years. He knows from experience: "For a long time, sales financing was a topic that was met with reluctance on all sides. Customers often didn't want to ask about financing and the sales department also kept quiet because they didn't necessarily want to talk to the customer about how they were going to pay."
This has now changed and many customers are grateful that TRACTO is there for them in this matter. The sales representatives also use the financing offers as as another sales argument. In 2022, a volume of 11 million euros was already financed; in 2023, demand fell slightly due to a general reluctance to buy and rising interest rates, but the market has now got used to interest rates and demand is rising again.
Numerous options and benefits of financing with TRACTO Finance
When buying a new machine, customers have to make a fundamental choice: they have to decide whether they want to the ownership of a machine, which involves a classic financing model. The second option is the use model, known as an operating lease, which is becoming increasingly popular because it gives the customer maximum flexibility.
The advantages for the entrepreneur of dealing with TRACTO instead of his bank are obvious: thanks to the low-threshold access to financing, the entrepreneur can concentrate on his core business at all times and does not have to conduct lengthy negotiations with his bank, submit proofs and documents. With TRACTO, you get everything from a single source and save a lot of time: you have only one contact when you want to rent or buy the right machine for the job via a financing or leasing model. Enquiries are handled discreetly and quickly.
At the same time, the credit line with your local bank is not used and liquidity is conserved, which can be used for other projects, such as business expansion. As an entrepreneur, you are also protected against numerous risks through various insurance policies. Unlike many banks, TRACTO Finance has the ability to create highly customised financing plans or adapt the process to current circumstances.
TRACTO Finance reacts quickly and flexibly
According to Torsten Wedi's experience, financing is mainly used for the purchase of high-value HDD or burst systems, as these machines involve a higher investment volume and therefore a higher financing requirement. As soon as earth rockets are involved, the machine is often financed together with the required compressor.
Of course, the current difficult market environment in the construction industry is also being felt in the financing sector, but TRACTO Finance still has some advantages over the house banks: Firstly, the range of services, because a house bank cannot offer an operating lease, for example. This can only be offered by the manufacturer, who can then take back the used machine, refurbish it and deliver it to new markets.
In addition, the company is able to react very quickly once the customer has reached an agreement with the sales force, for example. For smaller amounts, all the necessary steps can be completed within one working day, up to and including approval of financing. For larger amounts, a credit check is required, but all the necessary steps can be completed within a week in Germany and a maximum of two weeks abroad.
However, the processors need to be very careful, because unlike their house bank, TRACTO Finance cannot draw on the entire collateral pool such as the house, farm and receivables in an emergency, but only has the financed machine itself as collateral. In some cases, personal guarantees may be required.
In summary, TRACTO Finance is an important element in the company's concept of offering customers all products and services relating to trenchless construction from a single source.
For some time now, relatively high interest rates and a weakening economy have made many planned new investments more difficult for entrepreneurs for some time now. Higher costs, for example in purchasing or energy procurement, can quickly render plans obsolete and restrict financial scope, meaning that existing funds often cannot be used for investment, but must be allocated to other purposes.
Despite, or perhaps because of the challenging economic situation, many contractors are looking to broaden their base with a NODIG system in order to meet the growing demand from their customers. This is also due to the increasing desire of clients to use NODIG technology to not only save time and money, but also to reduce the impact on the environment, people and infrastructure. However, at the time of purchase, it is often uncertain how quickly a new system can be put into permanent use.
TRACTO Finance is more than just a financial service provider
For these and many other situations, TRACTO Finance GmbH, is a financial services provider that offers its customers solutions for new and used machines, ranging from loans and various leasing models such as operating leasing or hire purchase to the simple purchase of new products in instalments, and also accepts used machines as payment.
Torsten Wedi heads TRACTO Finance, which was established in April 2019, and is also responsible for the entire used machine business, rental and internal reconditioning of purchased machines. Together with his colleagues, he has continuously expanded the service portfolio over the years. He knows from experience: "For a long time, sales financing was a topic that was met with reluctance on all sides. Customers often didn't want to ask about financing and the sales department also kept quiet because they didn't necessarily want to talk to the customer about how they were going to pay."
This has now changed and many customers are grateful that TRACTO is there for them in this matter. The sales representatives also use the financing offers as as another sales argument. In 2022, a volume of 11 million euros was already financed; in 2023, demand fell slightly due to a general reluctance to buy and rising interest rates, but the market has now got used to interest rates and demand is rising again.
Numerous options and benefits of financing with TRACTO Finance
When buying a new machine, customers have to make a fundamental choice: they have to decide whether they want to the ownership of a machine, which involves a classic financing model. The second option is the use model, known as an operating lease, which is becoming increasingly popular because it gives the customer maximum flexibility.
The advantages for the entrepreneur of dealing with TRACTO instead of his bank are obvious: thanks to the low-threshold access to financing, the entrepreneur can concentrate on his core business at all times and does not have to conduct lengthy negotiations with his bank, submit proofs and documents. With TRACTO, you get everything from a single source and save a lot of time: you have only one contact when you want to rent or buy the right machine for the job via a financing or leasing model. Enquiries are handled discreetly and quickly.
At the same time, the credit line with your local bank is not used and liquidity is conserved, which can be used for other projects, such as business expansion. As an entrepreneur, you are also protected against numerous risks through various insurance policies. Unlike many banks, TRACTO Finance has the ability to create highly customised financing plans or adapt the process to current circumstances.
TRACTO Finance reacts quickly and flexibly
According to Torsten Wedi's experience, financing is mainly used for the purchase of high-value HDD or burst systems, as these machines involve a higher investment volume and therefore a higher financing requirement. As soon as earth rockets are involved, the machine is often financed together with the required compressor.
Of course, the current difficult market environment in the construction industry is also being felt in the financing sector, but TRACTO Finance still has some advantages over the house banks: Firstly, the range of services, because a house bank cannot offer an operating lease, for example. This can only be offered by the manufacturer, who can then take back the used machine, refurbish it and deliver it to new markets.
In addition, the company is able to react very quickly once the customer has reached an agreement with the sales force, for example. For smaller amounts, all the necessary steps can be completed within one working day, up to and including approval of financing. For larger amounts, a credit check is required, but all the necessary steps can be completed within a week in Germany and a maximum of two weeks abroad.
However, the processors need to be very careful, because unlike their house bank, TRACTO Finance cannot draw on the entire collateral pool such as the house, farm and receivables in an emergency, but only has the financed machine itself as collateral. In some cases, personal guarantees may be required.
In summary, TRACTO Finance is an important element in the company's concept of offering customers all products and services relating to trenchless construction from a single source.
