At first glance, an OEM-branded financial organisation may be construed as nothing more than a paper-processing plant, set up merely to facilitate smoother truck sales. A closer look at the new breed of 'branded' truck finance houses shows a great deal more; behind the paper, policies and paybacks are people, committed not only to selling their brand, but to offering services that help make their customers more profitable. One such organisation is MAN Financial Services (SA), writes Paul Collings.

The worlds of trucking and banking are poles apart, but they intersect every time a transport operator approaches a dealer to buy a new or used vehicle. In days gone by, this quite often involved the intervention of dealmakers, who would slice a commission off a deal they'd struck between bank, dealer and buyer, says Shirl Camera, National Manager: Sales and Marketing at MAN Financial Services (SA) [MFS]. "While this arrangement worked well for the so-called deal 'brokers', many operators felt less than satisfied with the after-sales service delivered by the broker, who had suddenly moved on to greener pastures."
 

Like cherries on top - (From Left) Shirl Camera, Elmarie Smith and Michael Kaiser.

It may be a sign of the local transport industry's coming of age that OEM-branded finance and insurance companies are being established and are functioning with great success. "Launched in 2003, MFS has formed an integrated working relationship with MAN Truck and Bus (SA) to offer customers the most flexible, solution-orientated financial services available to MAN buyers in South Africa," says Michael Kaiser, Managing Director, MAN FS (SA). 

"MAN Finance International is the holding company of the MAN Financial Services Group of Companies, based in Munich, Germany," Kaiser says, "which has offices in 12 countries. In terms of market penetration, MFS is in 1st place. As far as 'book size' (total portfolio) is concerned, we are currently in third position after Germany and the UK operation respectively."

Filling a gap
These rankings speak volumes about the demand in South Africa for dedicated truck finance. Buying a truck is quite different to buying a car, after all. It's about business, turning a profit, and as such, matching client needs and capacity with the right products, both metal and financial, is crucial to forming ongoing working relationships. The gap being filled by MFS is all about servicing individual needs. 

"Around 15% of our customer base currently comprises start-up operations," says Camera. "We are able to assist their entry into the industry by conducting interventions that help ensure the deal goes down smoothly such as checking contracts and specific clauses, the state of their operation, cash flows etc.. We effectively create an incubator environment with these clients, contributing significantly to skills development within these fledgling operations."

The brand dedication of the organisation ensures 100% focus on commercial vehicle sales and support, Kaiser says. "The integrated solution covers every aspect of running a profitable vehicle, from selection, through financing and insuring, to maintenance, servicing and replacement. It's a complete, one-stop-shop offering."

In a competitive market, time is money and the fleet-of-foot usually win out. "Our turnaround time is what makes the difference," says Camera. "We work hand-in-hand with our dealerships around the country, sitting in on sales meetings and working in conjunction with them to make a sale as speedy, cost effective and painless as possible."

The extra mile
While purchase packages are tailor-made for each client, MFS also offers a spread of insurance products designed specifically for the truck transport industry. "We have a pro-active approach to finding the optimum insurance portfolio for individual clients, with a range of products including comprehensive, goods in transit, passenger liability and credit protection cover." explains Elmarie Smith, National Manager, Fleet Support Services, MAN FS (SA). 

"We look at respective claims histories as well as various risk mitigating factors, those already in place and others which can be implemented to effectively lower risk and therefore premiums, she says. "For a small additional fee, operators can access expertise that not only lowers their risk but boosts efficiencies as well."

Common goals
We all know that commercial trucking is a specialised game and as such, operators want to deal with people who properly understand the nature of their business. Having a vehicle supplier provide you with a winning rig is only half the deal; having a finance and insurance house under the OEM 'umbrella' means 'fewer moving parts', improved cost/time efficiencies and less margin for error. As Smith so neatly says, "it's a natural progression."