Trailer Magazine

Growth through acquisition

  • From the June 2018 issue.
Growth through acquisition

The National Australia Bank has a dedicated, experienced team that assists commercial road transport businesses with funding the assets they need to grow and remain competitive.

President of the Truck Industry Council (TIC), Phil Taylor, said in a statement that he is pleased to see the heavy duty segment lead the sales boom, with reference to a new record in April truck sales.

According to TIC, the Australian truck and heavy van market – all vehicles above a gross vehicle mass (GVM) of 3,500kg, for the month of April, finished with a total of 3,151 sales. This was down approximately 300 units on the previous month of March 2018, however up a significant 634 vehicles, 25.2 per cent, over April last year. In fact, the result for April 2018 was an all-time sales record for the month, eclipsing the previous best April mark set back in 2008, just before Australia was hit by the effects of the Global Financial Crisis (GFC). Year-to-date sales were also above all previous results, with 11,826 heavy vehicles deliveries to the end of April – that is 483 vehicles more than were sold year-to-date April 2008, the previous record year.

Following positive trends in heavy vehicle sales across the country, this momentum does not seem to be slowing down any time soon, which is why the National Australia Bank (NAB) continues to invest in its specialist finance team. Tony Hales, NAB Equipment Finance Specialist, is one of many experienced, hard-working individuals, providing comprehensive financial services that are adapted to satisfy niche industry requirements.

“We typically handle equipment finance enquiries from a range of fleet operators, owner drivers and road transport businesses that are based all over Australia,” Tony says. “We work alongside the bankers to provide the most cost-effective and commercially viable long-term options for businesses.”

Tony explains that one of the most important aspects of providing financial services to the road transport industry is understanding the fundamental needs of the business. “During the initial consultation, we would typically determine the capital expenditure of the business for the next 12 months so that we can set a master limit to cater for multiple purchases. This is important because it not only helps us understand the business, but it also clearly defines the parameters that the fleet and the bank can operate in.”

Business owners, particularly in the manufacturing and logistics space, tend to require flexible payment arrangements, according to Tony. “Due to seasonal work cycles, such as grain harvest, or the delays associated with processing invoices between December and the start of February, there are periods of time where cash flow may be a challenge for a business. If an operator decides to add a new semi-trailer to their fleet, for example, there should be room to defer the initial repayment – usually around three months from when the asset was delivered. This allows time for the business to see a return on their investment from the outset, while also providing a generous timeframe for the business to engage with a realistic payment plan that will benefit everyone in the long-term.”

Tony says that each transport business is different, and it takes industry insight and a little technical know-how to best serve the needs of the customer. “With Equipment Finance Specialists located all over the country, NAB assists with the funding of thousands of trailers every year, from tippers and dogs, to refrigerated trailers, drop decks and skels. Ultimately, NAB takes the time to speak directly with the customer to structure the right asset payments, while helping businesses manage their cash flow to grow and be successful.

Fast Fact
Truck Industry Council CEO, Tony McMullan, noted strong April 2018 and year-to-date sales: “It is encouraging to see another good result in April to follow the solid first quarter figures. It is particularly encouraging to see heavy truck sales showing such continued progression. We are currently sitting on record sales growth and that is a strong position to be in as we head towards the end of the financial year.”

Fast Fact
Financial services company, the National Australia Bank (NAB), has been helping customers with their money for almost 160 years. According to NAB, it has more than 30,000 people serving 9,000,000 customers at more than 900 locations in Australia, New Zealand and around the world. “As Australia’s largest business bank, we work with small, medium and large businesses. We’re there from the beginning to support them through every stage of the business lifecycle.”

Fast Fact
According to the National Australia Bank’s Equipment Finance Specialist, Tony Hales, about 90 per cent of their transport and logistics customers organise Equipment Loans or ‘Chattel Mortgages’, where the business will own the asset and may benefit from tax deductions.

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