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For Greater Flexibility: Leasing MES for Production

Leasing instead of buying – companies today prefer this method of financing, especially for company vehicles. However, leasing can also make sense in other areas, such as software. There are advantages in terms of liquidity, but also in the ability to plan projects. In cooperation with CHG-MERIDIAN AG, technology manager and financial expert and new partner of FASTEC, companies can now lease the Manufacturing Execution System (MES) FASTEC 4 PRO for their production.

Like renting, leasing is a method of financing. It involves the transfer of use of an item or software in return for a monthly fee. The difference between the two methods lies in the duration: the up time is usually not fixed in the case of renting, whereas it is in the case of leasing. However, it can be extended over time if required. The exact leasing process can be illustrated in a so-called leasing triangle, which consists of a customer (e.g. manufacturing companies), a supplier (e.g. FASTEC) and a lessor (e.g. CHG-MERIDIAN).

If a company wants to introduce an MES in its production, it has the option of buying or leasing FASTEC 4 PRO. If the customer opts for the latter, he contacts the lessor CHG-MERIDIAN and receives the corresponding leasing offer based on the negotiated offer from FASTEC. This is based on the licenses offered by FASTEC, which are the asset for the lease. FASTEC’s services and planned maintenance as well as the company’s own services can be integrated into the lease financing. When the parties come together by contract, the leasing triangle is created. For a monthly fee, the company can now use the MES in its production for a fixed period of time. 

We are very pleased that our customers can now also lease our MES if required and thus act more flexibly. I am sure that this offer will suit many companies and make the decision to introduce FASTEC 4 PRO into production easier. After all, at the end of the up time, they can decide again how they want to proceed.

Felix Czaja, Sales Manager at FASTEC

Leasing Offers Advantages in the Areas of Liquidity, Planning and Processes

Software projects, such as the introduction of an MES, are characterized, among other things, by the fact that a higher investment is necessary at the beginning. Leasing can therefore be a suitable alternative to purchasing for companies. This is because the investment peak is eliminated. 

By leasing software, a company can plan its budget transparently because it knows from the start of the project how much liquidity it will have to set aside each month for future leasing payments.

Bernd Busse, Technical Sales Software at CHG-MERIDIAN AG

A company benefits not only financially, but also in terms of its accounting: The lessor is responsible for accounting for the asset as the owner, while the company reports the leasing expenses in the income statement. 

New Licenses Can Be Integrated on Time

Software leasing differs from hardware leasing in terms of the rights of use. The lessor acquires these from the supplier and then transfers them to the customer. An important prerequisite is that the license may not be limited in time and can therefore be used indefinitely. In addition to the software as the leased object, a contract can also specify a service, such as consulting or support.

If a customer wishes to acquire new licenses during the project, these can be integrated in line with the term. The MES FASTEC 4 PRO has a modular structure. While many industrial companies start with the Machine Data Acquisition (MDA) and Production Data Acquisition (PDA) modules, they can also add functions for maintenance, quality assurance, traceability or production planning over time.

The leasing term depends on the customer’s requirements. The customer has a specific budget, which usually specifies the period. At the end of the term, the customer has various options: They can return the software, buy it or, if the project is going well and further investment is required, extend the leasing contract. 

We have noticed that, due to the current market situation, more companies are once again willing to consider the topic of leasing. This is another reason why we are pleased to be partnering with FASTEC.

Bernd Busse, Technical Sales Software at CHG-MERIDIAN AG

CHG-Meridian AG develops, finances and manages individual usage models for technologies in IT, industry and healthcare sectors. The company is active in 30 countries worldwide. Its customers include international corporations and medium-sized companies, as well as public administrations and hospitals. With its technology2use approach, CHG-Meridian focuses on the principle of “using instead of owning”.

The company sees itself as a process facilitator in its projects with customers. In addition to leasing, customers are also advised on how to introduce the software correctly, for instance. This provides support throughout the entire life cycle. 

We have experts in the company who exclusively specialize in software leasing. They can guide companies through the project and make the process easier for them. Customers view this cooperation very positively and are happy to make use of it.

Bernd Busse, Technical Sales Software at CHG-MERIDIAN AG

In summary, leasing lowers the decision-making hurdles. In every MES project, expansions and upgrades are carried out over the long term. The investment sums for purchases must always be authorized. With leasing, however, only the existing installment is increased, which can have a positive influence on a decision. 

Our contact for software leasing: Bernd Busse from CHG-MERIDIAN AG.

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Author: Alexandra Hain

PR & Content Specialist
Experience in B2B communication and target group-specific copywriting in print and online since 2019.

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