Driving new tractor business through flexible inventory financing solutions

The Caminel Group has operated retail garden center stores in France since the 1960s. But in 2018 they began a bold new business-to-business (B2B) commercial endeavor as the official French importer and distributor of FARMTRAC tractors. That year, they also changed the name of their stores to Rural Master. Today, Caminel manages 20 Rural Master stores directly while supporting 25 franchises and a network of independent dealers, with some 200 sales outlets in total across France. In 2021, the company generated €71 million in revenues, nearly 8% of which was already from the new B2B activities.

A key to the fast and successful growth of Caminel’s new business is the close relationship with DLL Commercial Finance. “Thanks to DLL’s trust in the concept, and deep understanding of the farm equipment industry, we could rapidly import a large stock of equipment to build our network of franchises and independent dealers,” says Vincent Caminel, co-owner and managing director.

Financing fast growth

With their new B2B activities, Caminel was challenging big brand names for the sale of tractors and vehicles. In 2018, players from China and India were also entering the market, so Caminel needed to get ahead of the game and build their dealer network quickly. They needed dependable equipment financing for their dealers and for effective planning with manufacturers.

Caminel realized equipment financing is a specialized discipline requiring industry-specific knowledge. That’s why they contacted DLL who helped them implement a “Pay as Sold” inventory finance program. This provided the needed credibility during the start-up phase and also gave Caminel important operating capacity. They could import a critical mass of equipment and distribute it to where it was needed to their own stores, franchises and dealers. With the support of DLL, Caminel quickly became one of the top six sellers of compact tractors in France. In 2019, they further expanded their B2B offering as the exclusive distributor of other brand-name farm equipment in addition to FARMTRAC.

The “Pay as Sold” program is the foundation of the working relationship. Approved dealers are set up with a DLL credit facility to finance their stock purchases. The dealer repays DLL when the unit is sold to an end-user customer, or 360 days after the purchase date – whichever happens first.

This flexible solution works well for all parties. The dealer is able to obtain a good selection of equipment to present to customers and increase sales potential. DLL takes on the risk management. Caminel focuses on business development.

Partnering for the future

Caminel has ambitious plans. The company is not active in about 40% of France, so increasing geographic coverage is a target, and the DLL relationship helps Caminel open up more accounts.

Caminel and DLL continue to set up new programs that offer greater assistance to dealers. A recently rolled-out project facilitates the financing of seasonal products. DLL understands the seasonality of the agricultural business and offers effective solutions to address seasonal demand.

“DLL has been open to new operating methods that facilitate our processes at every stage, and this is something we really appreciate. We are thankful for their confidence in us,” says Vincent.

To learn more about how inventory financing solutions can help grow your business, visit our Commercial Finance webpage.