De Lage Landen Rabo band Issue 8/December 17, 1990 'We can supply great added value' De Lage Landen range consists of the following products, in the countries shown: The new head office of De Lage Landen in Eindhoven. The financial services company De Lage Landen was formed in 1969 by the then Boe renleenbank and the predecessors of the Interpolis insurance company. Today De Lage Landen is a wholly-owned subsidiary of Rabobank Nederland. The company has 540 employees, over a hundred of whom work outside the Netherlands. In 1989 the balance sheet total was 3.8 billion guilders, while in that year the net profit amounted to 24.2 million guilders. The holding company De Lage Landen BV has five operating companies in the Netherlands for leasing, factoring, debt collection, car leas ing and consumer finance. De Lage Landen's new head office - as from 15 December - is located in Eindhoven, the Netherlands. Toebosch explains things further: 'Initially, every country wili start with one firm in which various activities have a place, both leasing and cash management. At the start, it wili not pay to begin with two separate com panies.' Car leasing In view of the international clientèle, every country wili have to carry the minimum product range, taking account of the local market, of course. The com pany is also looking at whether very specific products can be added to this in each coun try. For example, full-service car leasing is a fairly unknown phenomenon in Germany, so De Lage Landen can profile itself effec- tively there with a leasing range like this. In the case of full-service leasing, car in surance, maintenance and repairs and the residual value risk of the car are entirely in the hands of the leasing company. This form of leasing is very normal in Belgium and the United Kingdom, so that De Lage Landen does not intend to waste much marketing energy on it there. Medium-sized companies A feature common to ali the foreign branches of the Eindhoven service company is that they of fer the markets the two 'spearhead pro ducts': international factoring and vendor leasing. Toebosch believes that after 1992 it wili mainly be the medium-sized compa nies which cross the frontier. The small ones wili continue to service the local mar ket in the Netherlands and the very large ones have long been familiar with the tricks of the trade abroad. 'These companies can make good use of our support. A business man like that can hardly speak the laguage, is unfamiliar with the payment customs and does not know how to find out whether a foreign debtor can be trusted to pay. We think we can supply the greatest added value, particularly for these com panies.' Conditions What added value can De Lage Landen suppiy? Toebosch gives an example: 'We have been in the factoring and debt collection business for a number of years now - services relating to debtor claims. On the basis of experience we know that you must have watertight deiivery and payment conditions if you don't want to get into difficulties. For example, if you don't state in your conditions that you wili charge debt collection costs in the event of default, then there is absolutely no possibility in Spain of claiming the extrajudicial costs from the defaulter. For that was not stated in your contract. So what do we do at pre sent: we don't only advise, but also sell de iivery and payment conditions. For we have buiit up know-how in that field.' Vendor leasing The second spearhead product, vendor leasing, has already got off to a flying start in the United Kindom. De Lage Landen sat down at the table with the tractor producer Massey Ferguson and to- gether they worked out a vendor lease plan that is advantageous to both of them and to British farmers. The farmer leases a tractor which in due course he can trade in at ad vantageous rates for a new one. To Massey Ferguson, that means continuity in its busi ness relations; 80 per cent of its tractors are sold under this leasing method. And it Iets De Lage Landen finance the lot. Next, De Lage Landen in turn is financed by Rabo- bank's London Branch. The financial ser vices company also intends to set up simi- lar programmes with Massey Ferguson in the rest of Europe. Dai-ichi Kangyo Bank Outside the Nether lands, De Lage Landen appears, in fact, to have only one handicap: its name can only be pronounced properly by true-born Dutch- men. But Toebosch does not worry so much about that. 'We talk to people from ali over of the world, but have never yet found that it is a real obstacle. However strangely they may pronounce the name. Of course it has its pros and cons, but now there is actually no way back. We have been investing in name recognition fortwenty years. And that can now be described as quite substantial. We are very regulariy approached by interna tional companies asking us to come and talk about particular programmes in our range. So in any event we are beginning to make a name for ourselves in our branch of business. Changing that name now would represent a big disinvestment. But I won't conceal the fact that 'De Lage Landen' says nothing about our activities. That's why you now see 'financial services' added in ali our advertising Communications. That's to let people know at any rate more or less what we are doing. In addition, we're happy to mention that we are part of the Rabobank Group. Just to let them know who we are.' It is obvious that Toebosch always puts things in perspective: 'I also think that if we can get used to the Dai-ichi Kangyo Bank here, then it is of course justifiabie to ask why foreigners cannot get used to De Lage Landen.' Consumer credit Car leasing CO CO Real estate leasing CO CO CO Vendor leasing CO (TT) CO CO Debt collection service CO CO CO CO CO CO Factoring CO CO CO CO CO CO CO

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blad 'Raboband International' (EN) | 1990 | | pagina 9