decision to close its broker arm to new business, BNP Paribas Lease
Group (BPLG) has announced it will cease some of its
Europe-wide broker business as of 1 January.
Mike Dix, the UK managing director of
BPLG, confirmed in December it will be closing its broker sales
channels in its technology solutions division as of this date.
Dix said: “The default on broker
business always has been significantly higher than on vendor
business. Given the current economic environment, the model does
not produce the level of return that the shareholder requires.”
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The lessor is believed to regard IT
and office equipment, which form part of its technology solutions
division, as more risky and less rewarding than agricultural or
commercial vehicle lines.
As a result of this move, it is
understood that 14 staff are due to be made redundant from BPLG’s
Bristol offices, from which broker business has been run in recent
years by business development manager Martin Arden.
It is uncertain whether the decision
to reduce its use of brokers will have staffing implications at the
lessor’s UK headquarters in Basingstoke.
A BNP spokesperson declined to comment
on when broker business might be resumed in 2009, or what
circumstances might prompt such a decision.
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By GlobalDataLikewise, Barclays Asset & Sales
Finance has made no comment as to when its own broker channels
might be reopened in 2009, but reiterated that it remained open for
direct business.
HSBC Equipment Finance head Derren
Sanders, meanwhile, made clear his bank’s intention to retain but
not expand its broker base.
Sanders said: “HSBC Equipment Finance
continues to use a limited number of brokers.
“We concentrate on those who can
introduce larger value, high quality business and who share our
culture of treating customers fairly alongside high levels of
customer service. We currently have no plans to add to this broker
group.”
CIT, meanwhile, dismissed market
rumours that it was reducing its use of brokers.
A spokesperson for CIT said: “CIT
continues to work with brokers in Europe.”
Nikki Cann, assistant director of the
National Association of Commercial Finance Brokers, said:
“Hopefully, we might start to see movement again within the next
eight to 12 months but, even then, things certainly won’t be like
they were in 2007.”
