How servitization can free ‘trapped capital’

Finance companies are helping clients to free up hundreds of millions of dollars in ‘trapped capital’ by adopting servitization as a way of sourcing key business assets.

By shifting their business models from a focus on ownership to paying for the use of key assets, companies can quickly release capital to focus on other projects.

At the International Asset Finance Network conference in London, delegates heard how HPE Financial Services has successfully used servitization to support customers.

Maria Rita Rolfi-Rittgers, EMEA relationship finance director at HP, said: “In the past, we would have been a traditional asset management and leasing company.

“We have changed our view to say ‘we have significant asset management knowledge. So why don’t we partner with clients; let’s talk about their existing install base?’

“One of the business outcomes that we think is compelling is the importance of the circular economy.”

HPE Financial Services is able to look at a customer’s existing estate and help them move into a servitization model, while also re-purposing and recycling unwanted infrastructure through its network to release additional value.

Carita O’Leary, global head of pricing & program development, HPE Financial Services, said: “We are reducing the equipment that’s going to waste. We’re putting assets back into the marketplace for redeployment, extending the usage of assets for longer and helping organisations move from an owned infrastructure to a usage infrastructure.”

A detailed overview of how asset finance companies are introducing servitization to their business models is available in this exclusive video, courtesy of global automotive, consumer and equipment finance software company White Clarke Group.

You can also view and download a new report on servitization that was supported by White Clarke Group here.

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