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The highly competitive Australian transportation sector, coupled with government regulations, often requires businesses to operate with updated fleets and equipment. Reliable transport equipment and machinery is essential for the delivery of top-quality services.
However, the financial burden of manufacturing, purchasing or upgrading such equipment can strain manufacturers, dealerships and end users alike. ATN sat down with Stephen Denlow, Business Development Manager for Transportation and Isabelle Marolho, Business Development Manager for Floorplan Finance of DLL ANZ, to understand the benefits of offering equipment financing to customers.
Regulatory changes in the Aussie trucking space are pushing for higher safety standards and sustainable vehicles, compelling manufacturers to invest in advanced and expensive technologies upfront, thereby triggering a domino effect on dealerships and end users acquiring vehicles at an elevated cost.
Enter transportation equipment finance: a practical solution for manufacturers, dealerships and end-users seeking funds for new vehicles, trucks, trailers, or any other machinery.
“DLL understands the unique challenges that exist in the current Australian transportation sector which are affecting the entire supply chain,” Denlow told ATN.
“There are also exciting opportunities within the sector with improved fleet safety and sustainability becoming focus points. These challenges and opportunities often mean an increased outlay is required to keep up with the need to upgrade fleets and equipment or expand the businesses for future growth. Manufacturers, dealerships, and end-users all face the challenge of managing these costs.
“DLL can offer a tailored solution by providing flexible financing plans that help spread these expenses over time. By using this approach, it alleviates the pressure of a substantial upfront cost which allows all parties to stay ahead in the market while ensuring they can invest in the latest, high-quality equipment without compromising their financial stability.”
When considering avenues for gaining a competitive edge, equipment manufacturers and dealerships may find financing solutions holding significant promise. Offering the end customers tailored financing can ease cash flow constraints and amplify their purchasing capabilities. DLL says the benefits of financing transportation equipment include an impact on sales and enhance the customer experience.
Top benefits of transportation equipment financing
Accelerate sales
Marolho says it is crucial for equipment manufacturers to swiftly distribute stock through an engaged dealer network to achieve business success. It’s also equally important for dealers to speed up sales by offering flexible financing options at the point of sale.
“To thrive in today’s competitive market, equipment manufacturers must efficiently distribute stock through a dynamic dealer network. For dealers, accelerating sales is equally vital, which can be achieved by providing flexible financing options directly at the point of sale,” Marolho told ATN.
By partnering with a financier like DLL, manufacturers can streamline their sales process and support dealers with solutions like floorplan financing for inventory purchases.
“Dealers can improve customer satisfaction by offering leasing and loan options with manageable monthly payments and attractive ownership choices which supports the end-user customer for their road ahead,” Denlow says.
Increase customer retention
“At the start of the supply chain, partnering with a financier to offer floorplan financing can significantly boost revenue for equipment manufacturers,” Marolho says.
“A strong financing partner helps reduce days sales outstanding (DSO) while ensuring a steady income stream. Meanwhile, dealers who provide leasing options to end users open the door to repeat business and a predictable sales pipeline. Leasing not only gives customers the flexibility to return, upgrade, or purchase equipment, but also keeps them engaged with the latest technology—meeting their evolving needs and driving continued success.”
Boost revenue and drive more margin per sale
At the very beginning of the supply chain, equipment manufacturers can increase their revenue by partnering with a financier to offer floorplan financing to their dealer networks. Working with a strong financing partner on a solution like this means reduced DSO and an increase in steady revenue.
On the other hand, further down the supply chain, dealers offering leasing options to end users mean more repeat business opportunities and a predictable pipeline.
Financial solutions such as leasing provide customers with a choice to return, upgrade, or offer to purchase the equipment. Often, customers want to stay up to date with the latest technology on the market by upgrading their equipment to newer models. This ensures not only customer retention, but also repeat purchases and contract renewals, securing a steady stream of revenue and higher margins per sale.
Expand into new markets
Venturing into new markets often poses significant challenges for equipment manufacturers and dealers, including upfront investments, extensive market research, and establishing suitable business networks.
“Partnering with the right financing solutions provider is essential for successfully entering new markets. Floorplan financing, for example, allows manufacturers to tap into dealer networks and build strong relationships in specialised sectors from day one,” Marolho says.
“In this way, financing becomes a powerful catalyst for seizing opportunities and a trusted guide through uncharted territories.”
Deliver a great customer experience
Recognising the diverse financing needs of customers is paramount. The best brands always know higher revenues come not only from winning new customers, but also from servicing the ones they have.
Manufacturers must consider the varying sizes of dealerships and their available cash reserves. For dealerships, catering to varying customer preferences is crucial; while some may opt to purchase equipment outright, others may prefer flexible leasing options.
Customising financing solutions for transportation equipment delivers an exceptional customer experience and lays the groundwork for future sales.
Offering a comprehensive range of equipment acquisition options — including reduced upfront cash outlays, flexible payment plans, and access to easy upgrades — presents an enticing opportunity to expand your customer base and foster greater loyalty. This holistic approach not only addresses the diverse needs of customers, but also enhances their overall satisfaction and engagement.
“In today’s evolving market, a reliable transportation equipment financing partner is essential. With over 50 years of experience and a global reach combined with local expertise, DLL is well-positioned to drive your business forward,” Denlow says.
“We offer innovative and flexible finance solutions tailored to the needs of manufacturers and dealers, helping you meet your customers’ long-term equipment and technology needs. Contact us to explore how our financing options can support your business growth.”
If you want to find out about specific financing solutions and are looking for a partner who can help you plan and offer such solutions, reach out to us here.
Finance is provided by De Lage Landen Pty Limited (ABN 20 101 692 040) (DLL). Equipment to be used for business purposes only. Subject to DLL’s standard credit criteria, fees and terms and conditions apply.
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