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QUICK-CLICK FINANCE?

27th October 2005
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Page 55, 27th October 2005 — QUICK-CLICK FINANCE?
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Which of the following most accurately describes the problem?

Sorting out finance for a new vehicle can be a time-consuming task. Does the internet approach throw up any new options?

With time becoming ever more precious in business, it's not always convenient to hunt down finance for a new vehicle via traditional methods such as the telephone or on foot. But while the internet may be useful when it comes to securing a loan for a new car, the world of commercial vehicles is a different proposition entirely. So, are there any takers?

Rob Jennings, of Close Asset finance, which has just redesigned its website,says:"When it comes to commercial vehicles everyone is different, so to offer a decision based on set parameters via the internet would not work. If an operator is after the best deal it would be hard to tailor it via specific questions on the internet."

A quick run-through of various websites shows that although there's plenty of information and advice available on the subject from finance companies, they direct you to a telephone number for the ultimate decision.

This approach can be partly down to the cost that's involved. Unlike a car loan, buying a commercial vehicle deals in much higher values (a tractor unit,for example, will top £50,000). So for a company to offer finance it has to be secure in the knowledge that the customer is able to repay without difficulty.

Kelvin Briggs,of Alliance and Leicester, says:"When considering an operator's loan application we have to know they are capable of meeting our requirements. We have to ask ourselves 'Do they have a legitimate business?' and 'What type of operation is it?'

"This will require looking at their accounts and current contracts to gain a picture of where the business is going. By doing this we can better understand the operator's needs."

Although getting a decision on finance over the internet might be seen as convenient in terms of time, operators may be after a specific vehicle, which might have a long lead-time.

Briggs says: -If someone is after a new vehicle they tend to plan six months ahead based on business predictions and manufacturer's lead-times. Most will want to discuss the proposal and not rush into it.There's still very much the personal touch in this business and face-to-face meetings are a regular occurrence. If we visit their operation we can see how things have developed, have a look round the business.This really builds a relationship that could be in place for years to come."

The finance company may also be able to offer other services through its relationships with, for example, vehicle insurers.This may not always be evident on the internet.

But with the increasing use of technology in business will the future see any change to the traditional finance approach? Alliance and Leicester conducted a workshop asking customers about innovations, including such facilities: the answer was a resounding "No".

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Locations: Leicester

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