"Buy now, pay later"
How HINZ Steuerungstechnik manages its cash flow using Siemens Extended Payment Terms (EPT)
Positive effects on cash flow and liquidity
HINZ Steuerungstechnik GmbH is extending its payment terms for purchases of goods from Siemens in a smart way and independently of its primary banks.
Switchgear manufacturing, electrical installations for plant control, and innovative software applications – all of this is part of the portfolio of HINZ Steuerungstechnik GmbH, based in Velbert, North Rhine-Westphalia. To manufacture this complex hardware, expensive goods and components must be purchased and paid for early on and in large quantities. It often takes several weeks or months before the products are delivered and customers in the stone, earth, and bulk materials industries settle the agreed-upon purchase prices. This time lag between outgoing and incoming payments – typical in this line of business – was straining the liquidity of HINZ Steuerungstechnik GmbH.
As a Siemens customer, however, this medium-sized company can easily find a solution: Extended Payment Terms (EPT), Siemens’ payment term extension program. By offering payment terms of up to 180 days, this option represents an attractive and practical alternative to bank loans. A major advantage is that EPT is generally available to Siemens customers with an online order volume of up to approximately 25,000 euros on a fully automated basis. HINZ Steuerungstechnik GmbH also learned about EPT through the “SiePortal” e-business platform. Since the desired purchase volume exceeded the automated limit, the customer took advantage of the option to request a higher limit with a single click. Our sales team immediately contacted the customer to jointly arrange for the rapid establishment of a sufficient limit.
Freedom of choice during the ordering process
EPT offers customers the freedom to structure their payments flexibly.
When purchasing Siemens technology, our customers can, as part of their usual ordering process, opt for extended payment terms at any time with a single click, or continue to order under the standard payment terms agreed upon with Siemens AG.
The advantages of extended payment terms at Siemens are clear: HINZ Steuerungstechnik GmbH benefits from improved liquidity, thereby optimizing its cash flow. The available liquidity can thus remain within the company longer and be used flexibly for other purposes. In addition, the extended payment terms from Siemens also offer tangible operational benefits. Rüdiger Hinz, Managing Partner of HINZ Steuerungstechnik GmbH, comments:
Thanks to Siemens EPT, we can purchase Siemens technology with extended payment terms of up to 180 days. This has significantly simplified our purchasing process and improved our cash flow.