It appears that Kingsley Asset Finance is
the only leasing company to have taken literally the expression
“step into the ring and fight” in order to stay afloat during the
current economic downturn. After all, this Chorley-based company in
February sponsored boxer Michael Jennings during his world
welterweight fight at New York’s Madison Square Garden.
Although the former British champion was
beaten in the fifth round of a fierce match, the contest gave
Kingsley, an independent lessor which traditionally has provided
leasing for the haulage industry, international visibility.
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But as with most lessors these days, the
biggest challenge for Kingsley has been the economic downturn, and
as a result its own “fighting strategy” has been fully revised.
According to managing director Jonathan Smith,
the company is moving away from financing assets – computer, gym
and catering equipment – which have “limited residual values in a
distressed situation” and focusing more on its core area of haulage
finance, as well as invoice discounting and commercial
mortgages.
Around 55 percent of its business is
haulage-related, and Smith feels this is a less risky area to be
financing as minimum initial deposits in this sector have increased
from 10 to 25 percent of the value of the asset. This growth has
been aimed at maximising recovery when assets are being
repossessed.
Smith acknowledges there is a need for caution
as increasing numbers of haulage companies enter administration. He
has also sought to offset risk by favouring the leasing of older
haulage vehicles as doing so means it will be less hit by the
downturn in residual values.
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By GlobalDataAlso, most other lessors – particularly larger
ones – are less keen to finance such vehicles.
Smith explains: “Because many small firms
can’t afford brand-new trucks, they are choosing used vehicles
which don’t have much appeal to bigger funders, whereas we are
happy to come out with some structured package for them.”
According to Smith, Kingsley, which started
trading in 1994, is also well-placed in terms of liquidity. He said
that it has “full support” from its funders who “are also looking
to increase our funding lines”.
