Customer FINANCING

Purchase

When a Customer wants to own an asset, planning to use the facility in question permanently or over a long period of time.

The Customer takes over ownership of the immovable, which can be written off on their balance sheet by deducting the expense of the depreciation within the time periods stipulated under the General Accounting Plan for this type of facility.

Rental

When a Customer needs to use some facilities temporarily.

Normetal rents facilities it owns to the Customer for an estimated length of time. The advantage entailed is that no initial investment and therefore no financing is required for purchasing, not using up the Customer’s financial resources. The full rental fee is entered as an expense on the Results Account, with the resulting tax savings.

leasing

When a Customer wants to own an asset, planning to use the facility in question permanently or over a long period of time but without any initial outlay for making the investment.

Normetal negotiates a leasing contract with a financial institution in the Customer’s name, under which the financial institution is the owner of the asset in question. At the end of the covenanted leasing period, the Customer undertakes to purchase the asset for a residual value. This option has all of the advantages of a Rental, the Customer however having the enjoyment of a newly-manufactured product. All of the leasing fees must be entered on the books as a debt on the Customer’s balance sheet.

renting

When a Customer wants to own an asset, planning to use the facility in question permanently or over a long period of time but without any initial outlay for making the investment and also without having potential financing taken up as regards third parties.

Normetal negotiates a renting contract with a financial institution in the Customer’s name, under which the financial institution is the owner of the asset. At the end of the covenanted renting period, the Customer undertakes to purchase the asset for a residual value of 10%-20%. This has all the advantages of a Rental, the Customer however having the enjoyment of a newly-manufactured product. Depending on how the renting contracts are structured, it could be possible to avoid entering all of the renting fees on the books as debt, thus freeing up financing for other investments by the Customer.

Rental

With Customer option to buy from NORMETAL in the future

When a Customer is not certain how long they will be needing to use a facility.

This option allows the Customer to enjoy the advantages of rental, but reserving the right to purchase the asset in question in the future at a covenanted price known today.

Purchase

With option to sell back to NORMETAL in the future

When a Customer wants to own an asset, planning to use the facility in question over a long period of time.

This option allows the Customer to be assured that if their need has been covered within a certain time period, they may sell the asset in question back to Normetal at a covenanted price known today.

Financing

Structured for international projects

In projects for social purposes in developing countries.

These are normally soft credits by way of agreements among countries to favor exports by domestic companies, the user country benefitting from the social project under highly advantageous financing conditions.