Summit has worked with Seven Investment Management to provide funding for business relocation, office fit out and the acquisition of new high technology assets.
Romad Ltd is a market leading specialist solutions provider of mobile location based services (LBS) for lone worker protection and personal security. They manufacture the Romad Personal Safety Phone, a powerful cell ‘phone based GPS location tracking product that provides security and peace of mind for lone workers in both the Public and Private sector across Europe.
Our customer, a major hardware manufacturer that specalises at delivering and implementing client served desktop systems, was granted a major sub-contractor remit by a well known IT outsourcing company.
Major finance house - desktop roll-out
A major finance house was seeking to replace the desktop computers within its back-office operations and, at the same time, upgrade the related network infrastructure.
The existing equipment had been purchased over the previous three to four years. The desktops were following the business'e general, four years depreciation policy for office equipment and most had a material book value. The installation of the new equipment was to be implemented over a three-month roll out period. The company did not want separate rental contracts for each delivery and many different invoices to reconcile and administer.
Summit Asset Management designed a bespoke financing solution to meet the customer's needs. The existing equipment was purchased at its book value to avoid any loss on disposal. Systems which were no longer required were removed and the balance of this equipment rented over its remaining useful life.
A line of credit was arranged to cover the total value of all the equipment and a master rental contract drawn up and signed by the customer.
Even though the new equipment was installed over three months and the supplier was paid as the equipment was accepted, the customer did not pay anything until the rollout was complete.
Summit warehoused the cost of the debt and made a supplementary charge that was simply calculated, on a cost per day interest basis, from the date of acceptance of each batch of equipment to the first payment date of the rental contract.
The supplementary charges for each batch of equipment were collected along with the first rental.
The customer was not charged rentals whilst the equipment was being installed and ultimately received one, simple-to-understand, invoice per quarter once the installation was complete.