How to Efficiently Access the Diverse Equipment you Need for HS2

The sheer scale of the HS2 project will require many suppliers to rapidly procure fleets of equipment from different vendors, often for a 2 to 5-year period. In part 2 of our HS2 series, specialists at DLL, one of the top five Asset Finance companies in the UK¹, share their perspectives on how HS2 suppliers in diverse sectors can efficiently access the diverse equipment they need.

“HS2 represents a golden business opportunity for suppliers, but only if they spend their time and money wisely on the equipment they need,” says Martin Jol, Global Head Fleet Solutions and New Business Development at DLL. “Buyers should look for industry-specific financing specialists who have the scope and scale to efficiently finance equipment from different vendors. Here are a few things to consider:”

One point of contact and one master lease
Traditionally if you want to lease a range of construction equipment from different manufacturers, you would have to negotiate financing contracts and return conditions with each separate company, captive financer or bank. That’s why it’s important to look for a financing partner that can arrange all of this for you.

“At DLL Fleet Solutions, for example, we offer a number of leasing products and fleet management services geared specifically to simplifying the process of acquiring and managing fleets with different types and brands of equipment. To do this, we draw upon our expertise across diverse sectors and we often use a master lease for these situations,” says Mark Hield, Senior Account Manager, UK Fleet Solutions at DLL.

A master lease is a pre-agreed set of master terms, credit limits and conditions set by the buyer and the financing company. It means that for any future financing arrangements, both parties have already set the terms, so it is very fast and easy to draw up new agreements. “We recently set up such a master lease with a global leader in the building materials industry. It enables them to fund assets ranging from heavy yellow plant to wheeled assets, while giving local countries allocated credit limits and Account Manager support.” says Mark Hield.

“This helped our customer to standardize his leasing processes and terms and conditions. It also made their procurement process more efficient because they don’t need to negotiate with different captives and banks or monitor different return conditions and other factors.”

Faster financing process
Time is of the essence with HS2. As an HS2 supplier, your ability to quickly scale up your resources can be a decisive factor in your ability to earn back your investment over a short period of time. The sheer paperwork involved in acquiring and managing an equipment fleet, whether it is from one brand or multiple brands, can obstruct the entire process.

“Master leases once again are key here. Take credit limits, for example. If a company has to renegotiate the credit limit on every separate contract for every separate piece of equipment, that quickly adds up in man hours and documents that have to be prepared, checked, signed and filed,” says Mark Hield. “Our master lease contracts leverage pre-agreed credit limits and one principal set of documents to streamline the entire process and help the customer standardize their leasing processes and terms and conditions.”

“Another way DLL helps companies save time in financing equipment for HS2 is through our industry-specific sales, asset management and credit teams who understand the construction business and assets required. Altogether, this can make the difference between arranging equipment financing in a few days or a few weeks.”

Financing solutions at scale
“DLL is a registered supplier for the HS2 supply chain and is actively working with key suppliers to help them meet their financing needs,” says Martin Joli, Global Head Fleet Solutions and New Business Development at DLL. “In the UK, we have ongoing relationships with leading manufacturers and HS2 suppliers across the Construction, Transportation, Industrial, Materials Handling, Waste Management, Specialist Vehicles and other sectors. Our global resources and underwriting capabilities enable us to provide financing solutions at the scale that will be needed for this project.”

Let’s make history together
“This is a defining moment for the people in the UK, and we look forward to playing our part in writing this new chapter of history,” says Mark Hield. “We believe that by working together with a clear focus on our end goal, we have the potential to make this not only the biggest – but also the most successful infrastructure project of this century.”

For more information please contact us.

¹ Annual Asset Finance UK 50 – 2020 rankings survey, published by Asset Finance Policy and Asset Finance International.