Financialtreat – will explain the Heavy Equipment Financing Company Profile Including Excavator Finance that you will get in the following article. let’s look at this article carefully!
Multifinance companies (finance companies) that finance heavy equipment, one of which is excavator finance, generally target companies engaged in the mining, plantation, forestry, and construction sectors. Heavy equipment financing business services are wrapped in leasing financing schemes, factoring, or other forms of financing. The following is a brief profile of heavy equipment finance companies in Indonesia.
1. BFI Finance Indonesia (BFI Finance)
BFI Finance was established in 1982 under the name PT Manufacturer Hanover Leasing Indonesia, is a joint venture of Manufacturer Hanover Leasing Corporation (USA) with local partners. Officially changed its name to PT BFI Finance Indonesia Tbk in 2001.
Currently, 48.15% of BFI shares are owned by Trinugraha Capital & CO SCA. The rest is owned by local and international investors as well as the public. BFI’s products and services include working capital, investment, and multipurpose financing, as well as sales lease back financing, and unsecured financing.
Working capital financing, and investment, is aim at productive needs such as working capital, investment and business development. Sales lease back financing, namely financing for the purchase of machines and heavy equipment, new and use, to support business productivity.
Types of heavy equipment such as excavator finance, bulldozers, cranes, forklifts, heavy trucks, as well as printing machines, industrial machines to medical devices. The portion of heavy equipment and machinery financing at BFI Finance is around 12%, the financing contribution is still dominate by use and new car financing of 70%, the rest is use motorcycle financing and sharia financing (CNBC Indonesia).
BFI Finance has a marketing network with 217 branch offices and 57 outlets spread throughout Indonesia.
2. Buana Finance (excavator finance)
Buana Finance was established in 1982, starting from the establishment of a mixed private financial institution called PT BBL Leasing Indonesia (Bangkok Bank Leasing). In 2005, the company changed its name to PT Buana Finance Tbk, which was fully supported by the founding group of Bank Buana Indonesia (now Bank UOB Indonesia).
The majority shareholder of Buana Finance is PT Sari Dasa Karsa at 67.60%. The remaining 32.40% is owned by the public. The focus of business activities is in the leasing and consumer financing (used car) segments, as well as multipurpose financing, which includes investment financing, working capital financing, and fund facilities.
Excavator finance products that can be provided such as heavy equipment (excavators, wheel loaders, forklifts, tractors, heavy trucks), generators, printing & offset machines, industrial machinery, cars and commercial vehicles, and ships.
Buana Finance finances Komatsu heavy equipment through United Tractors, and Hitachi heavy equipment through Hexindo, as well as many other well-known heavy equipment brands. Investment financing and working capital financing transactions can be carry out under the following schemes:
- Financial lease.
- Sell and lease back.
- Factoring by providing collateral from the seller of receivables (factoring with recourse).
- Factoring without collateral from the seller of receivables (factoring without recourse).
- Purchase with installment financing.
- And other financing.
Throughout 2021, the portion of financing in the mining sector was 9.8%, construction 5.2%, services 4.5%, plantations and forestry 3.9%, and manufacturing 1.45%, if added up to around 25% of the total financing lease distribution of Buana Finance. Buana Finance’s office network spreads across 34 branch offices and offices other than branch offices throughout Indonesia.
3. Clipan Finance Indonesia (Clipan Finance)
Clipan Finance was establish in 1982, under the name PT Clipan Leasing Corporation, which is a joint venture between Credit Lyonnais of France and Panin Bank. In 1990, the company officially change its name to PT Clipan Finance Indonesia Tbk.
Currently the majority shareholder is Panin Bank at 51.49%, the rest is own by investors and the public. Financing products and services include car financing (new and use), fleet financing, heavy equipment financing, and multipurpose financing (cash).
Financing facilities for the procurement of capital goods such as heavy equipment for mining, industry, plantations, forestry, barges, tugboats and production machinery. Clipan Finance only open heavy equipment financing in May 2021.
After a pause in the era of the COVID-19 pandemic. Clipan is eyeing a 20% share of heavy equipment and transport car financing from the total new financing target. Clipan Finance has a marketing network with branch offices and marketing offices spread across Sumatra, Java, Bali, Kalimantan and Sulawesi.
4. Chandra Sakti Utama Leasing (CSUL Finance)
Chandra Sakti Utama Leasing was previously name PT Standard Chartere Leasing. In 1995 CSUL Finance was acquire by PT Trakindo Utama from Standard Chartere Bank, as well as being one of the subsidiaries of PT Tiara Marga Trakindo (TMT).
Initially, CSUL Finance carry out business activities in the field of leasing financing, and consumer financing which only focus on TMT group employees. However, in 2014, CSUL Finance diversify its financing business activities. Previously in the form of leasing, factoring, and consumer financing, it is now investment financing, working capital financing, and multipurpose financing,
CSUL Finance provides investment financing facilities such as financing heavy equipment, machinery, forklifts, escalators, generators, and project commercial vehicles, to support business activities, relocation and business expansion. The heavily finance equipment is also from various brands, such as Caterpillar, Komatsu, Hyundai, Hitachi, Kobelco, and many more, according to the wishes and needs of CSUL Finance customers.
CSUL Finance also provides working capital loan financing facilities for individuals and business entities to meet working / business capital needs or expenses that run out in one cycle of debtor business activities with a maximum tenor of 2 years. The financing value provide by CSUL Finance includes:
- IDR 100 million – IDR 5 billion for investment financing.
- IDR 50 million – IDR 1 billion for working capital financing.
- Rp 50 million – Rp 500 million for multipurpose financing.
Before the pandemic, CSUL Finance’s financing contribution was around 70% support by the heavy equipment financing segment, the rest was car financing of 30% (Kontan). CSUL Finance’s network of offices is in Jakarta, Bekasi, Depok, Tangerang, Karawang, Bandung, Semarang, Surabaya, Denpasar, Pekanbaru, Jambi, Palembang, Banjarmasin, Balikpapan, Samarinda, Makassar, and Malang.
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5. Komatsu Astra Finance (KAF) – Excavator finance
PT Komatsu Astra Finance was establish in 2005, is a joint venture between Astra International through PT Sedaya Multi Investama and Komatsu through PT Komatsu Indonesia (50:50). KAF aims to support the sale of Komatsu heavy equipment and its supporting products market by PT United Tractors Tbk. (UT), by providing financing facility services.
In addition, KAF also collaborate with UT to design and offer a trade-in program and parts financing, to meet customer needs. KAF provides komatsu unit investment financing to customers in the form of Financial Lease. That is to rent out Komatsu units within a certain period of time.
Where at the end of the leasing period, customers can own Komatsu units by exercising ownership option rights base on mutually agree conditions and conditions. Apart from Financial Lease, KAF also provides support to its active debtors in the form of other financing.
The majority of KAF’s customers come from the coal mining sector. And to meet customer demands in the agro-forestry and construction sectors, KAF also expand its business network by opening representative offices in Pekanbaru, Surabaya, Balikpapan, and Makassar.
That is, a row of heavy equipment finance companies in Indonesia. There are multifinance companies whose main focus is on financing heavy equipment. While some of them consist of multifinance companies whose portion of heavy equipment financing ranges from 10% – 30% of the company’s total financing portfolio.