Komatsu and RentWorks launch KomRent for smart, cost-effective financing solutions
Capital equipment giant Komatsu South Africa and asset rental specialist RentWorks have launched KomRent, a residual-based rental solutions provider that offers customers in South Africa cost-effective and flexible financing options for Komatsu’s full range of world-class equipment.
“Tough market conditions have seen buyers, particularly in the mining and construction industries, re-think their purchasing strategies. What they need is access to world-class equipment with flexible financing terms that will help them to maintain their cash reserves, particularly in the demanding times we all face today,” says Komatsu’s General Manager Sales and Marketing, Mike Helm.
“At Komatsu, we pride ourselves on being in tune with our customers’ changing needs and see this strategic alliance with RentWorks as just another way in which we are able to help them to achieve their goals,” he says.
RentWorks is a member of the First Rand Group, and finances in excess of R3 billion in assets for more than 400 organisations, across a range of industries and asset types.
“A major factor in our decision to select RentWorks as the strategic partner in this venture is the fact that it is the only financial institution to carry 100% of the residual risk,” says Helm.
“Through our own financial strength and our ability to finance market-related residual positions, we have the ability to offer and procure competitive funding rates. We also have extensive asset knowledge and the expert ability to resell equipment at the highest market values,” says RentWorks Group Sales Director Kuben Rayan.
Through KomRent, Komatsu customers will now be able to operate a piece of equipment for an optimum period at the most cost-effective rate, and spread payments over the useful life of the asset.
“Because of this, they can access the equipment they need, when the need it, and not when only when capex budgets allows. Instead of buying a machine outright, they are able conserve cash to weather uncertain times or direct funding to income-generating pursuits,” says Rayan.
He explains that off-balance sheet funding enables customers to treat monthly capital equipment payments as an operating expense.
“They substantially reduce their initial cash outlay and do not need to settle for old technology as they are able to regularly invest in the newest and most technologically advanced equipment.”
Customers also maintain full control with a range of flexible end-of-term options. “A mining or construction company can return a piece of equipment with no further obligation. They can also continue renting it on a casual basis or extend the contract for a pre-determined term at a reduced cost,” says Rayan, adding that there are no hidden costs of asset ownership and potential losses on disposal
“We are delighted to enter into this alliance and believe that with our unique financial expertise and Komatsu’s experience in delivering high quality plant and capital equipment, we are set for a formidable partnership that will yield substantial benefits for customers,” concludes Rayan.
Helm makes the point that all equipment acquired through KomRent is accompanied by Komatsu’s full range of high quality back up and support services, including maintenance and parts supply. “At Komatsu, our focus extends beyond the manufacture and supply of world-class products that in numerous instances set the international benchmark. What sets us apart is a suite of value-added benefits that customers who acquire equipment via KomRent will also enjoy.”