Three Real Fleet Equipment Challenges Overcome with DLL Tailored Financial Solutions

Dec 20, 2021


We know that what sets DLL apart from other financial partners is a wealth of knowledge, 20 years’ experience, a global presence, and a thorough approach to the customer’s challenge. But as a customer looking to finance equipment or vehicles for your fleet, how can this help you?
Here, two of our DLL experts Industry Risk Officer, Herwin Bolijn, and Key Account Manager, Guido Guiking, share three real-life examples that show the actual benefits for their customers.

Real life challenge 1: Intralogistics – Financing the automation of a production operation

A successful international condiment manufacturing company needed to separate the production process for two of its different products, alongside targets to reduce manual processes and enable 24-hour operation.

The company wanted to automate their production and warehouse operations and required a financial solution to cover the $3.5 million cost. They first approached a bank, which was unable to help finance the unfamiliar assets needed to automate the operation, so the company looked to DLL for a solution.

After meeting with the company and learning about the operation and business requirements in great detail, DLL was able to offer a bespoke asset leasing solution, with affordable monthly payments, rather than up-front costs. This enabled the company to quickly progress with the automation of the operation.

“We understood the customer’s specific challenge and provided a tailor-made solution” says Guido. “DLL has provided many similar solutions to challenges like this and can finance every part of the automation process of an operation, including racking, equipment, and even software, such as telematics and warehouse management systems.”

Plus, for customers in logistics and warehousing, typically DLL can offer favorable residual values on a wide range of high-quality equipment.

“A lower quality forklift, for example, is cheaper to buy outright. However, those seeking a monthly lease price will find that the cost will be similar to that of a higher-quality truck,” Herwin explains. “Customers often find that it makes greater financial sense when leasing equipment to select the more expensive, higher quality equipment options that also support better reliability and productivity.”

Real life challenge 2: Waste Management – Financing hydrogen waste trucks to keep up with green regulations

Vehicle electrification is a fast-growing trend due to a global concern for the environment, and more government regulations driving businesses to move towards greener options with fewer emissions. Typically, heavy duty vehicles cannot easily accommodate large heavy batteries, or the power demands of charging, so some applications are looking to hydrogen powered vehicles as an innovative alternative.

“The Netherlands is one example where legislation is dictating that certain types of new vehicles bought within the waste sector must now be zero emission, and this has led to a sudden demand for hydrogen powered waste trucks,” says Guido. “Banks and other companies are often not willing to finance new and unfamiliar assets like this, but DLL can. The size and global scale of the DLL business also enables us to take greater risk than some other banks or loan companies.”

DLL is already working with a hydrogen waste truck manufacturer to help businesses rent the zero emissions equipment that they need. For organizations looking to update their fleet to hydrogen fuel cell power trucks, or to adopt other new technologies, the DLL team will evaluate the individual business case and assets in detail to provide the bespoke solution that is needed.

“In order to work out a good business case you need to think about who your end customers are, and who their end customers are,” Guido explains. “That is where our expertise comes into play, because we don’t just know the finance, we know the asset and the industry too.”

“We are doing more and more relating to new technology in the waste sector and there is huge potential for this technology to move across into ports and terminals,“ says Guido.” DLL sees a future in these types of assets, and in alternative energy sources, as this is a logical development that enables us to help businesses, but also the environment.”

Real life challenge 3: Machinery rental – Banks refusing finance to rental companies

DLL works with several hire companies renting heavy equipment to their customers. This includes aerial working platforms, forklift trucks, harbor equipment, cranes, construction equipment, and more, and helps businesses looking for short or long-term rentals to cover the needs of their business and specific projects.

Many successful equipment rental companies find banks refuse to finance the growth of their fleet and business.

Guido Guiking
Guido Guiking

“When a credit analyst reviews the balance sheet of a rental company, it may show high debt from all the assets that they have financed,” explains Herwin. “But rental companies are a unique type of business, so you must first understand this context to truly assess how best to support them with asset finance solutions”

DLL specialists have long experience working with rental companies, so can understand the true value of a hire company and its assets. If a rental company’s figures look unfavorable on paper compared to other types of business, DLL can still provide a solution. DLL uses specific rental underwriting guidelines to make an informed assessment and provide the right tailored asset finance solutions for rental companies.

“We are able to look at the numbers from the right perspective and understand that the company is actually doing very well, so we can lend the money with confidence,” says Herwin. “There is nothing that highlights DLL expertise like reviewing the figures in context and knowing you can offer a solution where others refused.”

“We continually build on our existing experience and understanding, to come up with realistic values,” Herwin adds. “Customers simply don’t get this depth of knowledge and understanding when they go to other leasing companies, or banks.”

Exceptional global service from DLL

DLL’s vast experience also comes from providing finance solutions to companies around the world.

“Many customers don’t just want asset expertise, but global presence,” adds Guido. “For multinational companies, it is easier and more efficient to have one solution provider in DLL, which offers worldwide coverage for its asset finance solutions, tailored to the business and the local market needs.”

To find out more about how DLL can help you with tailored financial solutions for your specific requirements and individual business case, please contact us, or learn more by visiting our fleet solutions web page.

Herwin Bolijn
Herwin Bolijn