When it comes to business equipment financing, the projects are as diverse as the imagination. It is clear that Glitnir finances projects and equipment for LazyTown as well as group buses for familiarization trips companies. What companies get out of such business financing is efficiency, flexibility and personal service.
When it comes to business equipment financing, the business is diverse and the customers can come from different backgrounds. Among Glitnir’s customers there are many and they come from different places. Large-scale work machines in contracting activities, group buses in tourism and complex computer and equipment in film production are just a few examples of job-creating financing projects that Glitnir is currently involved in.
LazyTown and Glitnir
LazyTown is currently producing children’s content for international television in Iceland’s largest film studio ever built in a 5,000 square meter building in the lava south of Garðabær. LazyTown is among the many companies that have taken advantage of Glitnir’s financing. Most of the equipment as well as the company’s vehicle fleet is financed with Glitnir’s financing lease.
“Our communication with Glitni began in connection with a comprehensive financing agreement concluded with Íslandsbanki. After Magnús Scheving reached an agreement with the Viacom conglomerate to show LazyTown in the United States, he looked for financing agreements with the Icelandic banks. Íslandsbanki understood what was needed and was the first to jump on the issue,” says Ólafur Njáll Sigurðsson, CFO of LazyTown.
He adds that when working with intellectual property, it can be difficult to price plans based on future expectations. Íslandsbanki has trusted itself to arrive at such a valuation and participate in the sale of shares and bonds to the company. “Thereby, the bank was not only providing funds, but it was putting its name to the sale of bonds to other investors.”
Ólafur says that although the biggest item of expenditure is labor costs, there are also huge costs in equipment, and that’s where Glitnir came into play. “The equipment we use is mostly bought and financed by Glitnir, as it turned out to be cheaper than renting it from manufacturers or other equipment rental companies.
Ólafur says that he likes to use equipment rentals in shorter film projects, but because of the length of the LazyTown project, it seemed more sensible to buy the equipment. In order to minimize the financial commitment, it was decided to negotiate a financing lease with Glitnir. “Our communication with Glitnir has been successful, as they are flexible and understanding,” says Ólafur Njáll Sigurðsson, LazyTown’s finance manager.
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