Diesel engine purchases can get expensive. Very expensive.
On large projects, it is not always just the initial purchase of engines that is the major financial burden. Customization. Installation. Shipping. Spare parts. Maintenance. Training. All these required functions come with their associated costs and financial burden, often exceeding the mere purchase price of the engine. Not just MarineDiesel engines. ANY engines.
MarineDiesel is a proudly Swedish company. As such, we are eligible to work with the Swedish Export Bank, EKN, to offer financing plans to our customers and distributors.
Costs of power projects over the last decade have soared, not only for shipbuilding, but also for industrial power projects. Cheap engines, usually made in China or India, have flooded the market, putting price pressure on all engine makers. There is much more to overall financial costs than simply purchase price. The presence of financing and the ability to finance large projects is often just as important, or more so, than acquisition cost alone.
The nature of engines means that they are difficult to finance. Boats are mobile, and move between countries. How does a bank mitigate that kind of risk? Additionally, another risk element is present: How do you separate the engine from the vehicle it was designed to power? This refers to legal or financial risk and reality. Do you place a lien on an entire ship, if only the engine is financed?
The answer is government.
EKN allows MarineDiesel to offer financing plans to customers, subject to approval. Approval varies, subject to many factors, both financial and geographic. However, plans are available, and they can make a big difference in terms of cash flow and affordability. They allow decisions based on technical merit, rather than simply cost.
If you have an upcoming project and would like MarineDiesel to offer a plan, simply contact your local distributor or MarineDiesel for more information.
For more information about EKN and the services they offer, visit the EKN website: EKN