Other financial instruments of Delete Group include instalment credit used to finance capital expenditure, with a typical contract maturity of 5 years. The Group also utilises both finance leases and operational leases to attain vehicles and other equipment needed to run the business operations. The typical maturity range of the leasing contracts is 3–6 years. The instalment credit and finance lease liabilities are reported on the Group’s balance sheet in accordance with IFRS.
Other, non-debt facilities:
Delete Group has a guarantee facility of EUR 2 million with Nordea Bank Plc. for the purpose of issuing for example performance, warranty period, advance payment, and environmental permit guarantees in the ordinary course of business. The guarantee facility is not debt to Delete Group and is reported as an off-balance sheet item in the Financial Statements.
The Group utilises non-recourse factoring mainly to finance working capital needs. Non-recourse factoring is not debt for Delete Group, as the financier purchases the receivables from Delete and carries for example credit risk on the sold receivables. Delete Group has a non-recourse factoring agreement with Aros Capital, with a limit of EUR 20 million and a continuing agreement with flexible cancellation term.