Fleet Financing with a Difference (NZ Company Vehicle Magazine - June 2023 issue)
08 June 2023
How well do you know UDC Finance? You’ll have heard the name for sure, given the company has been financing New Zealand business assets for the last 86 years.
And for some of you, that’s like ‘wow, longer than I’ve been in business’ or ‘wow, that’s older than my oldest employee’ which all sounds amusing, but it’s a serious statement of how much UDC Finance is part of our local economy.
In fact, UDC Finance has been part of the financial landscape for so long, you might think it is a bank in its own right, but you’d be wrong. According to Alistair Doyle, Regional Manager - Commercial for the UDC Finance northern region, “We’re one of New Zealand’s largest non-bank lending institutions with an extensive history of lending to different and varied industries such as civil construction, forestry and transport.”
For NZ Company Vehicle readers, you may not realise that UDC Finance also provides financial loan solutions for the fleet sector. Alistair identifies two UDC Finance products which are especially fleet focused. The first is the revolving credit facility used to acquire significant assets. Used primarily for larger loans, vehicle fleets are often used to leverage this facility.
The second is a lending product called Easylink. UDC provides a facility limit under this product where the assets have a separate loan assigned to them. This works well for small and larger clients, and provides a wide range of flexibility.
“Either facility is useful to business customers – especially those in the small to medium sector – looking for finance which allows them to grow and upgrade their fleet,” says Alistair, “What we offer are finance products which are simple, flexible and which suit the business needs of those customers.”
“We provide an option for organisations looking to own, rather than lease their vehicles,” says Alistair. “For many small to medium enterprises – or SMEs – short, or long-term vehicle ownership can prove to be a much better and more attractive option.”
There are pros and cons to buying versus leasing, but the short version – and most experts agree – buying is better in the long term. When buying vehicles:
- There are no mileage limitations (unless you set them)
- There are no constraints on modifications
- There are no penalties for ‘excess wear and tear’
- If circumstances change or you no longer want the vehicle, early termination penalties do not apply
- At the end of the finance term, you own the asset, meaning you can either sell it or use it beyond its financed term, getting better bang for your buck so to speak.
To be fair, financing typically has a greater repayment schedule than leasing, but a loan through UDC Finance can offer fixed or floating interest rates; an advantage few, if any lease or lenders are willing or able to offer.
“This sort of information is what SME’s need to know about UDC and what we can provide,” says Alistair. “The difference between fixed and floating interest rates and the advantages/disadvantages can sound complex, but that’s part of our role as responsible lenders: to explain all the options open to our customers.”
To do this, Alistair says, it’s all about relationships.
“It’s important for our customers to be assured that we have all the financial expertise to help their business succeed. Over 86 years, we’ve seen a lot of ups and downs economically and amassed a wealth of knowledge and experience, but it’s building partnerships between us and our customers which makes the difference.”
UDC Finance has a national presence with a team of dedicated professional commercial managers who specialise in building and nurturing professional relationships – determining which financial product best suits each customer through understanding the nature if each customer’s business.
“You can’t form a relationship with an 0800-Helpdesk,” says Alistair, “and if you are meeting your financial advisors at their offices, there’s a good chance the relationship is not going to be as solid as it should be.”
“We make a point of seeing our customers where they work,” says Alistair. “That way, we can get a better understanding of their business and business needs which in turn, allows us to put together the best financial products for them.”
Whether it’s a loan for ownership of one or two EVs, 20 utes, a couple of line haul trucks or a 50-tonne excavator, UDC operates a ‘keep it simple’ model, allowing businesses to purchase vehicles and grow based on understanding the assets and the roles they carry out in your organisation.
The large print from UDC Finance:
- For businesses looking for single vehicle finance, UDC offer an easy online application process with a fast turn-around.
- Businesses can borrow against new or existing assets.
- Revolving credit facilities are available secured against a business’ assets.
- UDC offer a pre-approved credit limit if a business regularly purchases assets.
- UDC offer fixed or floating interest rates for loan terms.
- UDC has flexible repayment structures to suit a business’ cash flow.
- UDC has a nationwide team of specialists with extensive finance experience.
The not so large print (but just as critical) is how fleet operators can find out more about financing with UDC. To find some useful information on fleet financing, click here.
To work with a flexible finance partner who understands your business needs, UDC Finance are the people to see – at your convenience, at your business and with your business success in mind.
This article is a general market commentary and does not constitute financial advice.