Point2Point | GRENKE
Thomas Sauerteig, MD, GC Leasing Middle East FZCO
Germany in 1978, has met with a positive response from the market. Luckily, with GRENKE’s demonstrably successful leasing model we don’t have to reinvent the wheel here in the Arab region either. Furthermore, we can always rely on the support of the franchisor, GRENKELEASING AG. But there are certainly differences. For example, GRENKE’s Dubai location has great market potential, as the small-ticket IT leasing market is still untapped to a large extent. This pioneering role brings us both advantages and disadvantages. On the one hand, standards firstly have to be created. On the other hand, we are in the comfortable position of not yet having any competitors. This means that we can help shape and develop the market.
A Pioneer in IT Leasing In a conversation with The Integrator, Thomas Sauerteig, Managing Director at GC Leasing Middle East FZCO -GRENKE Franchise discusses how the company is uniquely positioned in the small-ticket IT leasing market while his colleague Kunal Arora, Sales Director mentions how the company also offers a rewarding reseller program. Discuss your operations in the region? Thomas Sauerteig: We are a Franchise Company of GRENKE and we started our business in Dubai in February 2013. GRENKE our Franchisor have more than 30 years’ experience in Small-Ticket IT Leasing.
40 | October 2013
This is a unique Business model. Please elaborate on the feasibility of this in the region? Thomas Sauerteig: The financing model of offering small-ticket IT leasing for products such as PCs, notebooks, copiers and printers, which was developed by Wolfgang Grenke in
Discuss the target profile of customers who are likely to avail of leasing for their Technology and office equipment? Thomas Sauerteig: 95 % of the companies in Dubai are SME companies. And these are exactly our target customers. The situation in the
UAE is similar to Europe. They can safeguard their liquidity by leasing of IT and office systems. With our attractive leasing terms and leasing installments they protect their capital and give them a greater leverage and leeway when it comes to credit lines with banks and suppliers. The capital cost is spread across the leased item’s entire service life. But GRENKE offers even more for SME customers. With our trade-up option, they can replace your leased items with newer technology within the term of contract – without necessarily increasing your leasing payments. How are these IT products leased out? Are these purchased by Grenke or is this a Financing model? Thomas Sauerteig: It’s not a financing model. Our classic lease model is similar to a long term rental model. We close the leasing contract directly with the lessee and the supplier sends us the invoice. After receiving the invoice and the required documents, we guarantee the payment to the supplier within 24 hours. Leasing with GRENKE is available from a purchase price of 2,500.00 AED. Are these yearly leasing contracts? If customers want to exit a contract, what happens to the IT equipment that they have leased? Thomas Sauerteig: GRENKE offers different leasing terms from 15 months to 60 months in case of the leased equipment. For example, notebooks or PC’s have to be changed earlier than