Innovative financial solutions for evolving industries

Dec 20, 2021


Michael Hart, Fleet Solutions Head Americas, and Steve Cole, Asset Manager, suggest their top three ways that DLL can help finance the changes many businesses are facing, from the electrification of vehicles to the automation of warehouses.

If you want to discuss this in more detail, why not contact Michael or contact Steve directly?

1.Flexible leases for emerging technologies

Many markets globally are moving increasingly towards electric and zero emissions vehicles, often driven by government legislation. Finding finance for new technologies can be difficult, as many lenders are cautious of the unknown.

Here, DLL is ahead of the curve, working closely with operators in the market to understand what support businesses looking to switch to electric fleets will need, whether that’s zero emissions buses, or electric materials handling equipment. This advanced knowledge, combined with flexibility within leases, is giving businesses the asset finance solutions they need to adopt new innovations.

The financing of electric buses is a good example. Flexibility and creativity with finance solutions enables DLL to offer fair market value leases, which is a key market differentiator. The team at DLL has extensive industry and asset knowledge, so can offer contracts with extremely competitive residual values based on analysis of likely customer behavior and commercial conditions.


2.Integrated finance for specialist assets

In sectors where cashflow is key, the ability to pay monthly for an asset is important. However, when this asset is a new or unfamiliar technology, many lenders are unable to provide a solution. This is another area where DLL takes an entrepreneurial approach to provide bespoke solutions for our customers.

Headshot Michael Hart
Michael Hart

A global company with broad expertise and local market knowledge, DLL is agile enough to assume Residual Value risk, even on very specialist equipment. For example, in the logistics industry, DLLwill collaborate closely with a business to understand how it operates and what it needs, to be able to provide a tailored solution that works.

DLL has close partnerships in the industry, which ensures that a finance solution can be provided for large investments from the outset. For example, for a warehouse automation project, DLL can finance all of the assets required, from racking, to robotic equipment, to AGVs, to warehouse software. The integration of smart financing from DLL at the start, helps more projects, such as automation rollouts, come to fruition before they are rejected for being too great a capital expense on the customer’s balance sheet. A recent example of close collaboration was where DLL was involved in the early stages of a project, together with the manufacturer and the customer, to consult and calculate the stage payments at the point of designing a warehouse for new AGVs.

Another great example of DLL supporting businesses with specialist assets, was with Picnic in Germany. Picnic was founded by four entrepreneurs who had a vision for creating a more cost-effective and sustainable way to get groceries delivered, based on a modern milkman system. Today, they have built a successful online supermarket, powered by a smart app, green fulfilment centers and clean electric delivery vehicles. When Picnic continued to expand its German operations in 2019, they turned to asset financing specialist DLL to help finance its large fleet of delivery vehicles. See the full story.

3.Reducing TCO with a new approach

Achieving a reduced Total Cost of Ownership is a key driver for many businesses who need to know how the value of an asset will change and how that will impact their balance sheet. This is an especially complex calculation when trying to compare a lease, to an outright purchase, or finance via a bank loan. Plus, it is necessary to consider depreciation of the asset, and what can be done with it at the point of depreciation.

It is impossible to predict what the future holds, as demonstrated by the Covid-19 pandemic. However, with industry-wide expertise, DLL brings the insight of working with a variety of companies globally and combines that with local market understanding to provide leasing options that take away much of the uncertainty. Whether that is simply a matter of what happens when an asset reaches the end of its lease or is unexpectedly not needed anymore. DLL finance solutions are based on extensive data that indicates how the asset’s value will change, reducing risk, and providing businesses with flexible solutions so they do not have to carry unwanted equipment on their balance sheet unnecessarily.

This reassurance enables businesses to invest confidently in technology that enables them to do their job better. It also allows facilities and equipment to be updated more frequently, keeping businesses functioning as productively and profitably as possible, ready to adapt to new developments and technologies to further improve efficiencies and profitability.

DLL always takes a consultative approach, considering the genuine customer needs and looking at the benefits to each application to find the solution that fits. To this end, DLL has recently been educating many customers about the benefits of moving from traditional ownership, to usage-based models, such as ‘pay-per-use’ leases, which may be more cost-effective than traditional leasing or ownership, while still providing flexibility. Interest is growing in these developments in many sectors, from waste management to construction.

Ready to learn more?

The right solution will always completely depend on a business’s particular needs. Contact our Fleet Solutions team now to discuss how we can help you. Or visit our Fleet Solutions web page.

Headshot Steve Cole
Steve Cole