Capital financing for trucks, construction equipment and agricultural machinery is very different from obtaining finance for a new car – and these complexities multiply when doing business in Africa.
Based on Tata International Africa’s successful retail finance solution in African countries including Tanzania, Kenya, Nigeria, Ghana and Zambia, the group has now made its retail finance offering available in South Africa.
“The financing of heavy commercial vehicles, construction equipment and agricultural machinery presents its own unique set of challenges in Africa. The introduction of a captive retail finance solution has afforded some leeway in the way credit is provided,” says Len Brand, CEO and Managing Director of Tata International Africa.
“We have now applied our successes across the continent to bring/offer a unique solution in the South African market.
AFCL was established to provide short to medium repayment terms for customers acquiring assets from Tata distributors and dealers. With its understanding of customers’ needs, AFCL offers convenient and flexible solutions and finance products, specifically designed to address the challenges of securing finance, with the added benefit of a quick response time.
“Our new finance offering is based on the fact that traditional lending models do not always support good opportunities for growth in African markets. We now have a solution that comprises products with the ability to finance them, making this a compelling proposition for businesses in Africa,” adds Brand.
AFCL is the exclusive and preferred credit provider to Tata International Africa, offering a wide range of finance solutions including leases to acquire a wide range of vehicle types. As an independent captive funding house, AFCL’s focus is on financing Tata and Daewoo trucks and buses.
AFCL aligns its financing solution with the customer’s needs by offering affordable repayment terms that fit the cash flow cycle of that customer.
“It is not a one size fits all approach,” says Brand.
“We are obsessed with serving our customers and helping to solve problems. Our policy of deep customer understanding and delivering customer value defines the way we do business. Our resourceful team is willing to go the extra mile to deliver proficient services. Because access to credit is restricted, we support customers in overcoming this obstacle by providing easy application and credit processes with novel, flexible repayment structures.”