2008
The economic downturn has meant CapEx Direct, a commercial
vehicle lessor, is expecting to see growth in new business levels
this year of 10 per cent, considerably down on previous years.
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John Stephenson, CapEx Direct’s managing director, said new
business has doubled year on year, since the company’s formation
four years ago but that this year he expects a marked slowdown.
CapEx, which writes some prime business on its own book and
passes some subprime proposals to a sister company, recently gained
authorisation from the Financial Services Authority to introduce
and sell insurance products, which it intends to cross-sell to its
6,000-strong database.
The company, which also sells Keyman and motor vehicle GAP
covers as well as breakdown and accidental damage insurance on
static industrial machinery, is also investigating whether to enter
the marine leasing market.
Some 90 per cent of new deals comprise prime business and the
majority of deals are non-wheeled assets averaging £40,000, but
sometimes stretching up to £4m. Around 40 per cent of proposals are
received from internet connections, dealers and other
partnerships.
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By GlobalDataRecent deals, for example, include a raft of cash machines,
refurbished rail carriages, traffic lights, commercial submarines,
road sweepers, and mezzanine flooring and brewery equipment.
Funding sources include ING Lease and Lombard but the company
has a portfolio of some 30 funders catering for a variety of niche
assets, market sectors or different types of complex
transactions.
The company recently implemented icenet’s integrated web service
to link its own front-end website with icenet’s back-office system.
“CapEx processes business from a variety of sources, so the ability
to cut down on paperwork and to track cases at anytime was crucial
to our future success,” said Stephenson.
“The icenet interface enables CapEx to submit applications onto
funders’ systems immediately.”
Brian Rogerson
