Page 60 - Linkline Yearbook 2017

AIB Provide Proven Financial Solutions for Transport Operators
Rob Quill
Rob Quill is AIB Transport & Logistics Sector Strategy Team Manager
After a number of difficult years the Irish economy has been growing steadily in recent years. Although uncer- tainty will always be a part of economic outlook many
Irish businesses are now looking forward to the future with confidence. As companies look to grow and invest in their business they need to plan carefully to optimise their capital investment and ensure the business has the most appropri- ate capital structure in place.
Careful financial planning is key to managing business growth. The business should produce detailed financial projections outlining where the business wants to get to and how it will achieve this growth. It is important to revisit the plan periodically as situations may change and should be flexed to take account of new or lost opportunities.
In a recent Ipsos MRBI survey commissioned by AIB focusing on transport operators, 57% of respondents indicated they were seeking to expand their fleet in the next 12 months.
At AIB we have a range of short, medium and longer term financing solutions available to transport and logistics companies. This is a key sector for AIB and we are always working to improve our product offering and decision turnarounds for this sector. We have introduced focused sector specialists in order to understand our customers' needs and the challenges they face in business.
If you are looking to invest in new vehicles, equipment or machinery AIB Finance and Leasing offer a range of flexible asset finance solutions. At AIB, we’re Backing Brave and that means we will support you to purchase and finance the assets you need to take the next step with your business. Around the country we have a team of over 45 Asset Finance specialists who understand your business and are ready to help you. Whether your business is small or large, we have
a lending package that can help you with the finance. We have financed assets ranging from vans, trucks, specialist tooling machines, tractors, trailers, computer hardware and everything in between. You get to choose the term and frequency that suits you, with a typical term of three to five years, depending on the asset.
A major impediment to growth is not managing working capital cash flow. As sales of your company grow cash can become tied up with debtors, thus slowing your potential growth. Invoice Finance is a simple and discreet product which can smooth out cash flows giving businesses immediate access to cash from invoices raised. Ordinarily, businesses selling on credit can wait between 60 and 90 days for customers to settle invoices. Invoice Finance eases cash flow pressures, by making up to 85% of the invoice amount available the day our customer assigns invoices to us. When debtors pay, the remaining 15%, excluding fees, is then released to the customer. AIB Commercial Finance have a very simple, user friendly online platform to manage this process.
In recent AIB market research focused on the transport and logistics sector and through regular feedback from our customers, rising insurance costs is a challenge for the sector. This can put pressure on company cashflows. AIB has a range of flexible options which can assist with larger annual payments.
If seeking finance from a lender, businesses should have
a clear plan in place with detailed financial projections and be able to demonstrate a track record of positive trading with an ability to meet repayments. AIB seek to build relationships with clients so it is important there is an experienced management team in place with 79% of AIB's transport and logistics customers having been in business over 10 years. We recognise the transport and logistics sector is a challenging sector, it is therefore these relationships and experience that will allow us to trade through economic cycles together.
Although the recent Brexit vote will bring some uncertainty to the transport and logistics sector there will also be opportunities, with increased production in certain sectors. Ireland should also focus on attracting new manufacturing and logistics companies to Ireland to use us as a gateway to the EU. A total of 98% of transport operators are Irish owned which makes this a key indigenous sector.
60 The CharTered InsTITuTe of LogIsTICs & TransporT
AIB FINANCIAL SOLUTIONS