Fleet Finance
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Fleet Finance is extended by Lenders to part finance the purchase of fleet of cars/ buses/ trucks
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Fleet Finance includes financing of vehicles for commercial purposes
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Facilitates companies to source cars/ buses/ trucks; enhance capacity, improve average age of fleet, improve efficiency, etc.
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Fleet Finance is for new or old vehicles
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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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Financing amount is generally in the range of 60% to 80% of the purchase price
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Medium term financing; typically, in the range of 3 to 7 years
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Drawdown of the Facility is in sync with the terms of the Purchase Agreement
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Drawdown is directly made to the Seller of vehicles
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Amortisation of the Financing is by income generated from the fleet or from other finance sources of the Company
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Typical security package includes charge on the vehicles and registration of the charge with the relevant govt. department, assignment of income, guarantees, etc.
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Financial covenants/ Undertakings are typically included by lenders as part of the financing terms