Featured in RVBusiness.com, by: Gary Gerard on Mar 27, 2020
De Lage Landen International B.V. (DLL), a global finance partner for equipment and technology assets, recently announced its entry into the global RV space.
Through its existing commercial and inventory finance business, DLL, based in the Netherlands, will be specializing in dealer inventory financing, according to Mark McGovern, DLL business unit president for commercial finance. And, as one of the largest commercial finance companies in the world, DLL “clearly has the infrastructure in place to succeed in the RV space,” maintains McGovern.
“There’s a lot of muscle at DLL already,” he told RVBusiness.com. “We do commercial finance in similar asset types. We are the largest vendor finance company in the world if you combine our retail services and commercial finance services.”
Moving DLL’s commercial finance business into the RV arena is a good fit because the company “has the right complementary metrics to what our business, globally, wants to achieve,” asserted McGovern, adding, “It’s typically shorter-term finance. It revolves very quickly. It’s a nice financial complement to the ways in which we earn and support our vendors on the term finance side.”
As DLL seeks to expand its commercial finance footprint in the States, McGovern explained, the company wants to work more with assets that are mature and industries that are familiar with commercial finance delivery types. “We want to be able to leverage our vendor finance model,” he noted. “We’re taking the core value of what DLL does and bringing it to new asset types. RVs represent a mature industry, a large industry, an industry that would have real attraction to the DLL vendor finance delivery model.”
DLL, a wholly owned subsidiary of Rabobank Group, is looking to take a meaningful step into the RV industry and “make a big splash, if you will, for lack of a better word,” said McGovern.
“We have a unique vendor finance approach,” he said. “That is what we’ve built the company on for 50 years. The way we manage our relationships, the way we interact with our partners and our ability to do that on a global basis, we believe, is truly unique. The fact that we are highly specialized and segmented into our desired industry types means that we can take the expertise we have in our various other business units — namely healthcare or technology or construction or food and agribusiness — and use that same model to create expertise in the RV business.”