A new steering group set up by the British
Vehicle Rental and Leasing Association (BVRLA) could encourage a
raft of new funders into the vehicle rental and leasing market.
The BVRLA states that the group’s aims are to
improve the availability of competitively-priced funding for the
industry and to help existing and potential funders better
understand its risks and rewards.
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The group has been formed as the industry’s
main funder, Lloyds Banking Group, continues to reduce its £1bn
exposure to the rental and leasing market. Although Lloyds has
pledged to work with the industry to make this transition as smooth
as possible, the BVRLA says it is keen to help Lloyds’ customers in
particular to reduce their dependency on its funding. The group is
already working with several new funders to evaluate the
opportunities and product requirements of the industry and to
identify barriers.
BVRLA chief executive, John Lewis said: “This
group has been created to help replace some of the liquidity lost
since the credit crunch, as banks struggled to build up their
balance sheets and improve their flow of lending. Our industry has
coped with this squeeze and now it’s time to help lenders return to
the market and explore new funding opportunities. From the
conversations we’ve had with potential lenders already, I’m
confident that there’s new finance available for leasing and rental
companies.”
The steering group is chaired by BVRLA
honorary treasurer and board member Brian Back and includes members
from the association’s three key sectors: Graham Hale of Fleet
Hire, Andrew Cope of Zenith Provecta, Roger Hancock of Thrifty Car
Rental and David Barlow of ProHire.
The group’s first meeting was late last month,
and it has begun work on producing an ‘Industry Profile’ document
for potential funders and aims to conduct a funding survey of
members by the end of May.
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