Wrapped up perfectly:
McHale and DLL stock financing

When it comes to future-oriented and customer-centric financing, agricultural equipment dealer Tobias Häußer from Borgholzhausen places their trust in DLL's expertise. Flexibility and reliability serve as the cornerstones of their business success.

In times of escalating inflation and an uncertain global economy, the need for reliable financing extends beyond production, maintenance, and supply chains. Manufacturers and dealers are now seeking financing partners who can provide valuable support, such as extended payment terms, credit lines secured by assets, and custom-tailored stock financing programs. This is particularly important for dealers as it allows them to expand their machine inventory and increase sales, while avoiding additional strain on credit lines or bank loans from other sources.

Tobias Häußer's case serves as a perfect example of successful cooperation in the agricultural technology sector. Operating from Borgholzhausen, North Rhine-Westphalia, they specialize in balers and bale handling equipment, primarily offering machines from the renowned Irish manufacturer, McHale. Over the years, the company has established a strong partnership with DLL's finance experts, relying on them for both commercial finance and retail financing needs.

Expensive yet reasonably priced: McHale impresses with durability

Tobias Häußer, a trained agricultural machinery mechanic with a background in agricultural machinery engineering, commenced his venture of selling bale wrappers in 1995. His introduction to the machines from the esteemed Irish manufacturer, McHale, occurred at a trade fair in London, sparking his desire to bring these machines to Germany and increase their recognition. Superior workmanship, quality, excellent engineering, and the wealth of Irish expertise in bale wrapping technology were the decisive factors then and continue to be the reasons why Häußer considers McHale machines as pioneers in this field, even with their notably higher prices compared to competing equipment.

Häußer explains, "These machines are simply incomparable in terms of durability. The word about their quality spreads quickly, leading others to want to purchase as well," attesting to their reputation and reliability. He adds, "Although the McHale machines come with a higher price tag, their reliability and power far surpass others. Additionally, their high resale value makes them a much more economical investment."

Notably, Häußer's business success includes an impressive milestone, as the first bale wrapper he sold boasts a remarkable record of 1.8 million bales processed. He perceives this exceptional durability as a fundamental aspect of sustainability, recognizing the vital responsibility they bear as a collective industry. To contribute to sustainability efforts, he emphasizes the importance of reclaiming and refurbishing used machines.

Direct sales: Integrated Bale Wrappers - Fusion in Focus

Sales is conducted directly, without involving intermediaries. This approach arose from initial discussions with agricultural machinery dealers in the 1990s, which yielded no results as they were already offering different equipment. Undeterred, Häußer took matters into his own hands and personally visited potential customers, showcasing his machines with a trailer. Over the years, the product range has grown steadily and continues to expand.

Among the company's offerings, the McHale Fusion integrated bale wrapper stands as the best-seller. Introduced to the German market in 2003, it now accounts for approximately 70 percent of Tobias Häußer's total business. McHale's innovative approach combines baling and wrapping into one compact concept, unlike other manufacturers who add a separate wrapping unit to the baler. With this integrated solution, baling and wrapping are efficiently carried out by a single person and tractor. This streamlined process allows for baling and wrapping 50 to 60 bales per hour under favorable conditions, increasing productivity while reducing operating costs.

More flexible payment terms and credit lines

Häußer's customers, primarily consisting of agricultural contractors and farmers, particularly those engaged in dairy or horse farming, purchase the popular Fusion, now known as Fusion 3. As a committed agricultural equipment dealer, Häußer not only offers top-notch machinery but also goes the extra mile in providing exceptional customer service. They take back old machines, ensuring a sustainable approach, and offer a rapid supply of spare parts to address any issues promptly. Remarkably, an impressive 98.5 percent of all customer problems are efficiently resolved over the phone, showcasing the company's dedication to exceptional service.

To allow their team to focus entirely on their day-to-day operations and their customers' needs, they have found tremendous value in collaborating with experienced experts like DLL for financing solutions. DLL Commercial Finance offers a smart solution that improves their cashflow management and optimizes their inventory. By securing the financed objects as collateral, the credit line remains flexible and can be repaid at any time without incurring commitment interest. Interest is only accrued for the duration the property remains in the dealer's inventory. Furthermore, the interest calculation is precise to the day, providing 100 percent transparency through an online system that displays the dealer's financed machine inventory. This straightforward and secure management ensures smooth operation of the financed machine inventory.In addition to stock financing, DLL also extends solutions for end-customer financing for both new and used machines, further enhancing the options available to Häußer's valued customers.

DLL provides support for end-customers and stock financing

Häußer's introduction to DLL came about serendipitously. He admits, "To be honest, I wasn't actively seeking financial partners at the time. However, McHale, the manufacturer we work with, already had a collaboration with DLL." What caught his attention was the proactive approach of a finance company reaching out to him as a dealer. As his business grew, Häußer saw an opportunity to explore new avenues in financing to further drive growth. The quality and minimal depreciation of McHale equipment over the years made it a mutually beneficial arrangement for both parties.

For approximately a decade now, Häußer has been in successful collaboration with DLL for retail financing. Their stock finance partnership has been going strong for more than five years. Playing a pivotal role in this synergy is Matthias Kollmeyer, the New Business Development Manager for Commercial Finance at DLL, who serves as their dedicated contact. This long-standing association reflects the trust and synergy between the two companies, fostering a strong and reliable team for their financing needs.

Improved control, less effort

Previously, Häußer used to pay for the machines at McHale through other financial partners with their payment terms and then went through the process of refinancing them. However, since engaging in the stock financing program initiated by DLL, the dynamics have shifted, benefiting both McHale and Häußer. DLL provides McHale with the advantage of immediate payment for the machines, offering greater security, while Häußer enjoys streamlined processes and increased flexibility. According to Kollmeyer, this arrangement significantly simplifies the control of such processes and enhances the overall efficiency for both parties.

In the context of the agricultural industry, reliable financing is becoming increasingly crucial, both in the purchasing process and for end customers. As mechanization continues to rise, high-quality agricultural machinery has also become more expensive over the years. While direct financing was a preferred option for farmers a decade ago, it is now often unfeasible in many cases. Working with an experienced financial services provider like DLL in purchasing proves to be advantageous as it streamlines all related processes, making the entire procedure much simpler, Kollmeyer explains.

Häußer shares this sentiment and likens the function of a dealer to a sponge, where they must keep machines and equipment in stock and readily available for customers. DLL's support allows him to achieve this seamlessly. Having machines in stock ensures that Häußer is always prepared to meet customer demands, even under unexpected circumstances, such as the incident of a warehouse fire at McHale. By having machines in stock, he gains peace of mind and is willing to pay slightly more interest for this security.

Furthermore, the vendor-based purchase financing model relieves the retailer from various tasks that were previously on their desk, leading to smoother operations and a more focused approach to serving their customers. Overall, the collaboration with DLL has proved highly beneficial, enabling Häußer to optimize his business operations and provide top-notch service to his customers.

Try before you buy

Working with DLL brings numerous benefits, with a significant focus on automation that expedites and streamlines processes. The system provides manufacturers with a comprehensive overview of when machines can be dispatched, and invoice entries are efficiently recorded. Inventory checks are effortlessly carried out using an app, eliminating the need for a field audit expert to visit. This high degree of automation optimizes operations and ensures smooth communication between all parties. Furthermore, DLL's international reach and flexibility are highly praised by many dealers. They have the liberty to release machines for demo purposes, a unique advantage not easily found elsewhere. Even short-term rentals are made possible, offering exceptional flexibility, and opening up new business opportunities for the dealers. Customers benefit from this setup as they can try out machines before making a purchase decision.

In addition to the operational benefits, Häußer emphasizes the value of personal and amicable contact with DLL: "Unlike the typical image of bankers, DLL fosters a more relaxed and approachable relationship with its partners. Together, they tailor financing solutions that precisely meet the needs of individual customers. Seasonal installment plans are just one example of the customized approaches that are offered. Moreover, DLL's employees possess valuable industry knowledge in agriculture, making them adept at understanding the unique requirements of the sector."

The cooperation between Häußer and DLL stands on the foundation of simplicity and mutual respect. Retail and stock financing processes are straightforward and transparent, ensuring all parties interact as equals, working in harmony to achieve their shared goals.

To learn more about how our stock finance solutions can help grow your business, visit our Commercial Finance webpage.