Let’s meet Christophe Debatisse and Kris Tan who come back to the partnership setting-up to provide customized financial solutions to customers.
Christophe Debatisse - Head of Cash management & Haulotte Financial Services
Christophe Debatisse – an expert of leasing solutions in the banking sector – has joined Haulotte group in 2001. He successively held various positions within the sales department before working as Chief Financial Officer for Haulotte USA and eventually became CFO for Area Iberica and South America. He now works at the headquarters of the group, where he has been in charge of Cash Management & Financial Services for 3 years.
Kris Tan – Global Program Manager - DLL
DLL – a wholly owned subsidiary of Rabobank Group – is a vendor finance company founded in 1969 and headquartered in the Netherlands. It provides asset-based financial solutions in many sectors and represents more than EUR 30 billion in assets. DLL has offices in more than 30 countries across the world.
What is the role of Haulotte financial solutions as part of the global range of services of Haulotte group?
First of all, could you please introduce yourself and define your role within DLL?
We have developed various financial solutions regarding the purchase of Haulotte equipment. This service is an integral part of the comprehensive package we provide and that always includes financing, warranty, technical training and after sales “maintenance and repair” services as well as a reconditioning or purchase option at the end of the term.
The ‘services’ aspect is a key element for all our customers. We have a duty to support and assist them throughout the development of their business model and our financing options are a component of our ability to always meet their needs in the best possible way
Can you detail these different solutions? How do they work exactly?
Haulotte Financial Services delivers a wide range of financing and leasing programs intended to meet the varying business needs of our customers. We provide various types of schedules, with Financial Lease, Operating Lease (contracts that are similar to “pure” rental) and Hire Purchase (with a purchase option) but always custom-made.
Of course, these financial solutions are additional and optional. Nearly 80% of Haulotte machines sold around the world are bought by equipment rental companies. Haulotte thus provides them with turnkey solutions to maintain the balance between their different sources of financing.
Are these programs equally available throughout the world?
They indeed are, but obviously there are local variants. Since 2014 Haulotte Financial Services has a global partnership with DLL – Financial Solutions Partner, a 100% owned subsidiary of Rabobank Group. DLL is a Vendor Finance company with a global business portfolio of more than EUR 30 billion in assets.
DLL also has unique skills and a great expertise regarding assets valuation and financial support for rental operations in our field of activity. Their presence in more than 30 countries is perfectly in line with our commercial networking and allows Haulotte Group to deliver quite homogeneous solutions everywhere in the world.
Does that mean that all your financing solutions go through DLL?
They mostly do, but not exclusively. In 2019, Haulotte Financial Services has contributed to the financing of more than EUR 100 million for around 4500 machines, mostly in Europe, North America, Southeast Asia and Australia. In all these zones, financing programs are handled by DLL whenever it is possible and relevant. When it comes to specific geographical areas (such as China) or specific types of customers, our subsidiaries work with local partners. Haulotte group can also provide structured financing solutions such as Export Finance from France regarding major orders placed by foreign customers. This specific case is much rarer, but Haulotte believes there is always a solution.
In concrete terms, what can you tell us about the “standard” financing cases handled by Haulotte Financial Services?
There is actually no such thing as a standard financing case, and we strive to provide custom-made solutions. For equipment rental companies, we provide options that can range between 200 000 and EUR 10 million for batches ranging from 3 machines up to dozens of booms or telehandlers. Regarding machines with an average operational lifespan of around 10 years, “standard” financing periods are usually between 3 and 5 years and can sometimes reach up to 6 or 7 years, with or without end of term residual value.
Depending on the needs and the strategy of each customer, we can reduce or increase the amount of monthly payments by adjusting the repayment period or the residual value. Some companies grant more importance to Cash Flow while others are more mindful of the Total Operation Cost. Our financing programs and options can be adjusted to the needs of our customers.
My name is Kris Tan and I come from China. I am now based in Madrid and am the Global Program Manager for Haulotte, within our DLL organization. I have been working for DLL for 15 years now. My responsibility is to align with Haulotte Financial Services on our global financing strategy and local implementation in more than 20 countries, worldwide.
Could you tell us more on the activity and services provided by DLL? Who does DLL work with, and why?
DLL is originally a Dutch company. We are a 100% owned subsidiary of the Dutch Rabobank Group. Globally, we are established in more than 30 countries where we have both business and offices. Our current global business portfolio is around EUR 35 billion and we have quite ambitious plans to grow with our vendor partners over the next five years’ time into a global portfolio of EUR50 billion
We provide asset-based financing solutions in specific segments, where we have rich and strong industry specializations and knowledge. This includes food and agriculture, healthcare, clean tech, construction, transportation & industrial sector and office equipment & technology. In addition, we recently added a new business unit to our global picture, which we call Advanced Solutions and where we are actually being very ambitious to explore very innovative solutions that echo the revolution of the market we are in.
How would you define the purpose and the values of DLL?
DLL combines deep industry knowledge – as mentioned earlier- with customer-focus to develop innovative and sustainable financial solutions that deliver meaningful values to the world. We are also doing this by creating amazing customer experiences that enable businesses to easily access equipment and technology. We can also deliver insights and advice that drive a smarter way of using this equipment and technology. We are not only an asset-based financing company: we deliver additional value to our customers.
What is your vision of the market? Has it changed a lot according to you in the past?
I think that nowadays, for everybody, every market globally, the key theme and key word is definitely “change”. The market trend is changing: there are new equipment and technologies coming up, so change is really the theme of the whole world. Which is why, in my opinion, innovation is very core to both DLL and Haulotte strategy, going forward. All of this mirrors what DLL is aiming for, because now on top of the conventional business, we are really looking into the areas that we can trigger sustainable growth, such as automated guided vehicles (AGVs), 3D printing, robotics, etc. In fact, we are really stepping out of our comfort zone to try and see what the new technologies are for the future and also try to embrace the changing needs.
Apart from new technologies, we are also witnessing a new trend of equipment usage from an ownership mindset to a pay-per-use approach, where the ultimate goal of financing is to link the payment to the actual usage hours of the equipment. The more you use, the more you pay, and vice versa. We have recently closed our first pay-per-use deal with an international coffee supply solution provider Selecta. We finance their customers based on the income generated by all coffee machines they installed across the UK. Very different, isn´t it?!
How do you see 2020 and the future for Haulotte and you? What will be the opportunities and perspectives/prospects?
We are going to grow together with Haulotte, continue to offer different types of financing to suit customers’ needs, that is for sure. We are in a moment where financing will play a bigger role to explore and trigger more demand in the market.
In 2020, we will continue our journey of digital transformation. In the past year, we have been making a lot of efforts and investments in developing the mobile solutions through which customers would log into this DLL app on their mobile phones, make a quote or use the same app for credit approval or e-documentation, e-signatures, etc. Within DLL, we have a mission, that we call “Route 95”: in the future we are going to have 95% of our flow business managed digitally.
How and when did the partnership between DLL and Haulotte start exactly? Are both DLL and Haulotte fully satisfied so far in your opinion?
We have been nominated as number one vendor finance partner of the year for seven years in a row. Partnering with the global leading manufacturers is core in our strategy: it aligns with our go-to-market plans, it is our DNA. Our mission is really to help our vendors increase their market share and market penetration as well as enhance brand awareness in the market. Our relationship with Haulotte dates back to 2014 and since then we have a cooperation in around 20+ countries across Europe, Northern America, South America and Asia. To me, this Haulotte-DLL cooperation is like a family. We share our mutual targets and goals, the 2 organizations work seamlessly as one team to go to the market, jointly we created a strong branding Haulotte Financial Services that is helping more customers in the world to have a quick and easy access to the latest technology of Haulotte.
I am personally very happy with this partnership with Haulotte and so is DLL. This program is actually one of our few programs with a presence in 20+ countries across the globe, with active business operations. We look forward to reaching more milestones with Haulotte in the every-changing world and 1 plus 1 is bigger than 2.