The laser and machine tool manufacturer, Trumpf, has founded its own bank for the production engineering community. Trumpf Financial Services GmbH is the first bank to have been founded in Baden-Württemberg, Germany for three and a half years.
A manufacturer's own deposit bank, while known in the automotive industry, is a first in the mechanical engineering sector. Trumpf president, Dr Nicola Leibinger-Kammüller, commented: ‘We certainly have industry-specific advantages – we are closer to our customers than many traditional bank representatives, we are active in the real economy, and we provide for reinvestment in the German mechanical engineering sector.’
Being licensed as a universal bank will enable Trumpf to offer entirely new products in the future for everything relating to sales financing, lending, and business startups – not only in Germany, but throughout Europe. Trumpf’s banking license includes an ‘EU passport', enabling services to be offered across borders without the need for separate authorisation procedures.
Trumpf’s UK branch, based in Luton, is currently processing 10 new finance projects with a combined value of €5 million.
‘Finance projects in the UK are now being processed directly by the Trumpf bank in Germany and the customer using a cross-border leasing agreement. Sales tax is therefore charged using the reverse charge mechanism which offers important cash flow advantages,’ said Simon Binns, finance director of Trumpf UK.
Trumpf employees will benefit from the banking license, as will the leasing sector, which has seen an increase in the regulatory requirements for hiring machines.
‘We understand the clients’ business and needs and can see potential behind their investment better than anyone,’ explained Hans-Joachim Doerr, managing director of the bank. ‘We can offer greater flexibility than others and, unlike alternative lenders, we only use the machine to guarantee the loan.’
Ever since 2001, Trumpf has provided sales financing via its own leasing company, which has operated since October 2012 under the name of Trumpf Financial Services GmbH. In 2007 a second leasing company, Trumpf Finance Switzerland, was added. Currently, customers in 22 countries are making use of the company’s financing models, and there are cooperation partners in 11 countries.