Banks and financial institutions
Most new equipment and a very significant proportion of used equipment is purchased on finance.
Banks have some interesting challenges with plant and equipment given the very high level of theft in the plant and equipment industry. These include:
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Sales staff paid on commission can be too keen to close deals quickly, possibly without sufficient due diligence to ensure long term success of the agreement
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Pressure on sales staff from customers to make the deal quickly otherwise they will take the deal to another another bank, which severely restricts – often intentionally by a customer intent on fraud – the opportunities for the bank to carry out due diligence by either physical inspection of the asset(s) by the bank or their agent to verify the existence of the equipment and that it is what the customer says it is, or at least checking the registered ownership and finance status of the plant and equipment
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Lack of knowledge about plant and equipment amongst bank staff
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Lack of pre-agreement due diligence
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Lack of awareness of plant and equipment related frauds
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Lack of sufficient information about the parties requesting finance
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Lack of mid and end of term inspections to ensure the equipment still exists, its condition and value
TER’s services for banks and financial institutions
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Registration of financed equipment. Notify TER of all equipment in which you have an interest.
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Registration of stolen/‘missing at insolvency’ equipment. Notify TER of all equipment which is stolen or missing and in which you retain an interest.
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Pre-finance due diligence checking/asset inspection. Before financing used equipment the bank or finance company can check with TER to determine whether the equipment exists, is what the client claims it to be, and is not registered as stolen. TER will also determine the registered finance status. Services available include:
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Physical inspection and report to determine: that the machine exists, the identity data, date of manufacture, registered ownership and finance status, provide machine condition report with photographs, and valuation.
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TER database Trade or Premium Check on equipment identification details supplied by you to TER.
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Mid and end of term inspections to determine whether the asset is still in the client’s possession, its condition, and value.
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Recovery contract. TER recovers items of equipment on your behalf (ie where you are the title holder or retain an interest) and each recovery will entitle TER to a recovery fee whether it is returned to your client or sold by us on your behalf.
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Equipment sales. TER sells equipment at the end of a contract or where TER is asked to sell equipment by the bank.
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Intelligence