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1. Fleet Finance is extended by Lenders to part finance the purchase of fleet of cars/ buses/ trucks

2. Fleet Finance includes financing of vehicles for commercial purposes

3. Facilitates companies to source cars/ buses/ trucks; enhance capacity, improve average age of fleet, improve efficiency, etc.

4. Fleet Finance is for new or old vehicles

5. Ensures preservation of existing working capital in the business as separate Fleet Finance is mobilised to purchase the fleet.

 

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Typical Financing Terms

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1. Financing amount is generally in the range of 60% to 80% of the purchase price

2. Medium term financing; typically, in the range of 3 to 7 years

3. Drawdown of the Facility is in sync with the terms of the Purchase Agreement

4. Drawdown is directly made to the Seller of vehicles

5. Amortisation of the Financing is by income generated from the fleet or from other finance sources of the Company

6. Typical security package includes charge on the vehicles and registration of the charge with the relevant govt. department, assignment of income, guarantees, etc.

7. Financial covenants/ Undertakings are typically included by lenders as part of the financing terms