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12.06.2013 - Ausgabe: 3/2013

No Playground? Lease!

The Berlin playground manufacturer Merry-go-round has been producing high quality playgrounds for years.


As a general rule those responsible for such undertakings desire the excellent quality but, ultimately, find themselves faced with the question of how to finance the project and the necessity to invest.

Ulrich Paulig, owner of Merry-go-round, has had contacts with the MKB Mittelrheinische Bank GmbH, a medium-sized investment financing bank and its subsidiary MMV Leasing GmbH, which has eleven offices and branches nationwide, for years. Paulig has used the MMV Leasing branch in Berlin in the past time and time again to finance his own expansion and replacement investment or leasing because the quality processes used when working with wood and metal raw materials require the costly utilisation of modern technology. At the same time, the implementation time of an individual project places a tremendous strain on the company’s liquidity.

During one of the last conversations with MKB/MMV up for discussion were the planning documents for a new Merry-go-round project. The local authority customer was being forced to discard essential components of the concept due to budget constraints because the required financial funds were subject to restricted availability. It’s regrettable that the overall vision and the high quality realisation of this idea suffer at the hands of the necessary cost cutting and that the end product is clearly less attractive to behold than what was originally intended.
The financing specialists at MKB/MMV have the components that constitute the entire project, each identified as a movable asset. In official depreciation tables the amortisation period could be used as an important indicator to determine the useful life and essential basis of calculation for leasing financing, so that it quickly became apparent that both individual pieces of playground equipment as well as complete projects are “leasable”. These types of projects can be financed through investment loans anyway.

A joint offer was developed by Merry-go-round and MMV/MKB out of this, in which the public law or commercially active customers are immediately offered, in addition to the overall investment costs named by Paulig, a leasing and/or financing rate for the financing of the project.

Customer interest in the offer is evident: budgetary considerations determine the available opportunities and not the question of whether or not a useful and attractive end product can be achieved. With a sensible financial plan by its side, the ugly duckling can be turned into a gracious swan, which is good for the image project.

The current interest rate also allows for an overview of the costs linked to the financing arrangements that arise when leasing as well as when taking out a loan. At the end of the financing term the entire installation will, of course, continue to be made available to the customer. The installation/object can be comfortably purchased by the MM at the end of the leasing contracts.

It’s easy to contact Merry-go-round or MKB/MMV: uli.paulig@merrygoround.de or axel.günther@mmv-leasing.de

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