Asset Finance Made Simple (NZ Company Vehicle - April Issue)
11 April 2024
UDC is one of New Zealand's leading asset finance companies with a specific focus on tracks and wheels. They’ve got extensive experience across our five core industries, including transport/logistics, civil construction, forestry, agriculture, aviation, and in addition a clear focus on the financing of the motor vehicle industry as a whole.
According to Alistair Doyle, Regional Commercial Manager for Auckland and Northern, a key differentiator is that UDC is New Zealand’s largest ‘non-bank’ lending institution (that’s right, they’re not a bank), and on top of that, they’ve been providing finance to Kiwi businesses for purchasing vehicles and assets for over 86 years.
Alistair says, “I think the key is that we understand the asset and can extend value to that vehicle.”
Alistair Doyle
UDC operates a ‘keep it simple’ model, allowing businesses to purchase vehicles and grow based on understanding the assets. They offer an alternative to leasing vehicle fleets and as such, their service comes with a multitude of benefits.
Alistair says that they have a nationwide team of specialists with extensive finance experience, meaning that operators can meet with their local dedicated Relationship Managers and Assistant Managers in their own backyard. Literally. Adding, “If a business is looking for single vehicle finance, we also offer an easy online application process with a fast turn-around.”
He says that businesses can borrow against new or existing assets and that revolving credit facilities are available, secured against the business’ assets. What’s more, they offer a pre-approved credit limit if a business regularly purchases assets, offer fixed or floating interest rates for loan terms, and have flexible repayment structures to suit a business’ cash flow.
“We understand that businesses are looking for finance that allows them to grow and upgrade their fleet, but it must be simple, flexible and suit their business needs. UDC has numerous customers who use our facilities to fund everything from the EV for the office to a 50-tonne excavator to a line haul rig - by knowing our market, we can get maximum value for you out of your fleet.”
Alistair believes that there's always the demand for finance, and that it often makes sense to finance vehicular assets, particularly the ones that generate revenue.
“This week, we saw a situation where, due to their CFO not liking debt, a company had funded a number of vehicles by cash, and that had put some pressure on their cash flow. The CFO moved on, and with a fresh set of eyes, we're now going to lend money to that company to finance those vehicles. We'll put some cash and capital back into the business to help their cash flow needs.”
Although UDC’s business is multi-pronged, Alistair’s area has an SME lean, and will look at anything from a single vehicle loan, right through to a fleet finance facility, so that could be anything from one through to 100+ cars. Also, powertrains are not an issue either, including EVs. “UDC is the one of the largest funders of electric vehicles in New Zealand, and has relationships with many key EV providers across the industry,” says Alistair.
He expands on their EV stance. “We have seen a decline in EV purchases in 2024 off the back of the government subsidy ending, so the market and residual values over the next 24-36 months are somewhat uncertain, which we have also seen in other global markets. But we're still extending coverage against them - we still have a risk appetite for EVs.”
According to Alistair (and indeed their advert) UDC still has money to lend, lots of it.
“UDC is very well backed by SBI Shinsei Bank Group and we have a range of funding options through banks and securitisation, so there’s no issue at all in respect to funding lines.”
Alistair is keen to point out that they do make things easy and that they are indeed more relationship focused.
“We're not in suits and ties if you know what I mean. So, if you’re looking for a flexible finance partner who understands your business needs, talk to one of our dedicated asset finance specialists today.”
This article is a general market commentary and does not constitute financial advice.