Financial Services news

Subscribe to industry newsletters

Press offices

Enquire about a press office
Bizcommunity has over 400 industry contributors and we always welcome further contributions and contributors.
Advertise with us
Advertise & RatesMy Account
Company press officeList company
Recruitment packagesSubmit job ad
Download ratecard
Financial Services news

BAW made progress to secure financing for taxis

19 Nov 2012 06:23
One of the most significant challenges within the taxi industry is gaining finance - many taxi operators battle to get finance for the vehicles that they require or they end up paying excessive interest costs. As John Jessup, head of sales and marketing at BAW South Africa, notes: "You cannot blame the banks; they are not in the market to take unreasonable risks."
However, this was a challenge that BAW set out to address from day one. "We wanted to come up with an innovative way of getting well priced finance to a broader base of taxi customers, and we believe that we have gone some way to achieve this," Jessup says.

Factory reconditioning facility

"We have established a factory reconditioning facility so, if a bank does repossess a taxi, that repossession can be converted into a valuable asset. We will respray the taxi, put in new seats, install a new drivetrain - do whatever is necessary to get that vehicle to a factory level of reconditioning."

There is a huge market for properly reconditioned taxis. "These will be re-marketed via our dealer network and refinanced by participating banks. Therefore this is a very creative way of offsetting a lot of the banks' risk in terms of financing taxis," Jessup concludes.

BAW, with the invaluable assistance of the IDC, has already signed a finance agreement with ABSA. Two of the other big four major banks are expected to sign agreements shortly.
    
 
LEGAL DISCLAIMER: This Message Board accepts no liability of legal consequences that arise from the Message Boards (e.g. defamation, slander, or other such crimes). All posted messages are the sole property of their respective authors. The maintainer does retain the right to remove any message posts for whatever reasons. People that post messages to this forum are not to libel/slander nor in any other way depict a company, entity, individual(s), or service in a false light; should they do so, the legal consequences are theirs alone. Bizcommunity.com will disclose authors' IP addresses to authorities if compelled to do so by a court of law.

News