Does Your Asset Financing Provider Have the Flexibility You Need?

When it comes to financing for your costliest assets, you need to find a financing partner that has creativity and flexibility that goes well beyond supplying capital.

When it’s time to replace existing assets and procure new ones, the first inclination for many businesses would be to approach their commercial banking partner to provide capital for the funding of the new assets. That might seem like the logical choice.

But money shouldn’t be the only issue under consideration when it comes to asset financing. You want to work with someone who understands your business and your industry as a whole. You want a partner that can help you to not only finance your assets, but will also help you evaluate your overall asset costs and asset utilization to determine the most efficient and productive financing program.

That’s why companies are now looking for resources other than banks; they’re looking for resources that have expertise in their specific industry. As an example, in our AmeriQuest Procurement Division, we have a customer base of over 2200 fleets.. The cost of the typical class 8 tractor ranges from $100,000 to in excess of $140,000.  Procuring just 10 has become a million dollar decision.. So before taking on this financial burden, companies need to explore if they are making the best choice of asset, how best to finance that asset, or even if they should be taking on this cost at this point in time. Banks cannot provide this information. They neither have access to nor understand the data that would enable their customers to make more informed decisions – data like fuel economy, asset utilization, maintenance and repair costs, and acquisition and disposal trends. This is where a finance and fleet management partner like AmeriQuest can make a major difference.

A fleet may still decide to work with their commercial bank…or they may try to pit one bank against another, spending a considerable amount of time and effort chasing 50 basis points in financing savings (which may amount to only $38 per month). Whereas by partnering with, and following the advice of an industry expert, that same fleet could realize over $300 per month in operational cost savings.  The key is to evaluate the total cost not just one aspect of the overall expense.

Each industry has its own data sets that need to be gathered and analyzed to help optimize a company’s asset acquisitions. Finding a finance partner that understands those needs, challenges, and priorities can help a company realize a greater ROI than they would find with a traditional bank.

 

Patrick Gaskins

About Patrick Gaskins

Patrick Gaskins is Senior Vice President Financial Services, CTP, of Financial Services with AmeriQuest Transportation Services. He has nearly 20 years’ experience as a financial services professional in the transportation industry. Prior to joining AmeriQuest, he held financial services positions with First Fleet and GE Capital.

Leave a Reply