Access to/obtaining funding

“We reached our credit limit with our leasing provider, but weren’t notified in time to find the best alternative deal,” David Millar, fleet manager, REL field marketing

REL’s fleet shot up from 85 cars to 200 following two major contract wins, but David Millar was unable to source the vehicles from his main contract hire provider earlier this year.

“Initially we were offered some very good rates from our provider but then the bank which owns them said we had reached our credit limit as we already had 65 vehicles with them,”
Millar says.

This happened over a two-week period and left him with little time to shop around with the major players.

Millar sourced the vehicles from two smaller providers he had not used before so there were no issues over credit limit, but he believes he missed out.

“Our main provider offered a more competitive rate so it cost us money,” says Millar.

“It was a waste of everyone’s time. The bank should have alerted the sales team much sooner.”

The responses

 

GE Capital Fleet Services says: It is difficult to comment upon individual underwriting scenarios, but it is clearly quite unacceptable to leave a customer in a position of uncertainty.

Openness, clarity and speed of communication are the only ways to ensure that the relationship between lessee and lessor is not soured.

As with any key element of a contract, credit limits should form a core part of the strategic account review process on a regular basis.

Clarity of contract, strong service levels and sensible account management principles are the basis upon which successful, long-term relationships are built.

Zenith says: There should not be any surprises as the customer should have a close working relationship with their account manager at the leasing company.

They should discuss account evolution and credit requirements through account reviews and by regular contact.