1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100
101
102
103
104
105
106
107
108
109
110
111
112
113
114
115
116
117
118
119
120
121
122
123
124
125
126
127
128
129
130
131
132
133
134
135
136
137
138
139
140
141
142
143
144
145
146
147
148
149
150
151
152
153
154
155
156
157
158
159
160
161
162
163
164
165
166
167
168
169
170
171
172
173
174
175
176
177
178
179
180
181
182
183
184
185
186
187
188
189
190
191
192
193
194
195
196
197
198 
Alliance and Leicester Commercial Finance
Page 59
If you've noticed an error in this article please click here to report it so we can fix it.
As a large independent provider, Alliance and Leicester Commercial Finance (ALCF) funds all makes of commercial vehicles and trailers. The company offers hire purchase, finance and operating leases among its finance schemes. Its customer base extends from owner-drivers and small hauliers to major PLCs and FTSE top500 companies.
Our company offers the capacity to fund the full residual value of a vehicle, whereas some manufacturer's financial arms cannot do this," says Kelvin Briggs, head of sales. "We can offer lower cost funds than manufacturers. This is because we're a bank. Manufacturers have had their global credit ratings downgraded in recent years."
He poses the question: "What are customers looking for?" While manufacturer packages might focus solely on funding trucks the independents are able to offer a range of ancillary packages associated with the industry, including buildings and equipment. In recent years ALCF has enjoyed growth in the corporate-scale haulage sector, mainly with operating leases. owever, hire purchase is more pt.Oar with smaller operators.
As one of the biggest dependents in the sector, ALCF is able to fund multimarque truck purchases.
"Some 50% of our finance deals with operators are through operating lease schemes," says Briggs. ''The remainder includes 30% hire purchase and 20% finance lease schemes."
But while customers have a wide range of packages to choose from, he believes some banks or independent companies are not prepared to offer operating lease finance packages because of the higher risk factor. Briggs adds that his company has an asset management team which disposes of vehicles at the end of contract.
"Independent hire purchase schemes are marginally lower cost than those offered by the manufacturers," he claims. "We have access to a lower cost of funds and our APR rates are generally lower."