Company announces in-house financing

Engineering support services company Babcock Africa, sole importer and distributor of DAF trucks to the Southern African market, announced in October that it had established a dedicated finance company, Babcock Financial Services (BFS).

“This development will give Babcock the competitive advantage of a full product offering over other brands in the market and enable the company to compete with others at the same level,” says Babcock Africa transport solutions division CEO Wilna Steyn.

The company initially entered into various joint ventures and partnerships with local banks to offer a solution to its customer base, explains Steyn.

However, she highlights that “these solutions did not fully meet all the requirements of Babcock’s customers who wanted an in-house solution”.

In addition to the recent renewal of Babcock’s DAF distribution contract for another five years, BFS demonstrates the company’s commitment to servicing and growing the DAF brand in South Africa.

“Within a short period, BFS has enjoyed a significant uptake from customers from all parts of South Africa,.” Steyn predicts that intake will rapidly increase over the next 12 months, adding that BFS currently has sufficient finance to cover more than a year’s sales and this will be steadily increased.

BFS is an independent legal entity, fully owned by Babcock Africa. It has been registered with all the relevant authorities to trade as a finance provider for capital equipment.

BFS sources its funding from Babcock Africa and the local market. Although administration has been outsourced to a reputable third-party service provider, Steyn explains that BFS management makes
the credit decisions.

The finance offering for buying DAF trucks for customers who qualify includes a wide range of structures to suit their business model.

Steyn says these include legal structures, payment-fee periods, terms, interest rates, balloon payments/residual values and quick decisions for credit approvals.

“All trucks financed through BFS will be sold with a repair and maintenance contract from Babcock Transport Solutions,” she concludes.