Are your fleet partners strong contenders in this economic marathon?

The Coronavirus pandemic has created a marathon economic slowdown that businesses are having a tough time enduring. Many companies are cramping up due to extreme liquidity challenges that will likely stretch into the foreseeable future. Lack of accessible cash often translates to staggered project launches and scratched development plans in order to sustain operating essentials, such as payroll and customer support. Complications such as funding availability and delivery delays of new, more efficient vehicles can further slow business recovery.

If your business is facing these challenges, you’ll want to lean on your strategic partners for solutions. When you’re evaluating how to curb cost increases in aging vehicles, harness equity from assets, or avoid delivery delays, your fleet and funding teammates should be poised to grab the baton and run with replacement recommendations, a sale leaseback analysis, or alternate acquisition plans.

In these difficult times, do your suppliers have the necessary  resources to help your company cross the finish line in both the short and long-term?

Can you clear funding, equity, and delivery hurdles?

Banks are tightening their credit standards in anticipation of rising bad debt, and bankruptcies will impact their credit losses. What’s more, some fleet leasing companies may not be able to get money from big banks either. Big picture – even some financial institutions will lose their speed and fall behind the pack.

At the same time, interest rates are low. This is precisely when you should be bounding toward the current funding market. For example, if you have a floating rate, should you switch to fixed (or vice versa)? A move like this could put you in an ideal position for the next leg of the race, which is more critical than ever considering the course ahead is uncertain.

Do you already have an inclination that your current finance or leasing partner is struggling to give you the support you need, especially if you’re looking for creative funding solutions? If you’re not sure, then it’s time for a team huddle to discuss the game plan, starting with whether or not the capital and/or credit you need is within their grasp.

Or you could be fearful of the vehicle acquisition baton getting dropped in the exchange zone of your relay team. In other words, one or more of your supply chain partners can’t move your vehicles from one step to the next. Maybe you’ve already experienced it. How do you get your new vehicles all the way to delivery if one of your partners can’t leave their starting block?

Review past indicators to predict future performance

Think back to the Great Recession of 2008. Do you remember which fleet management suppliers on your team demonstrated strength and stamina in helping your company craft a fleet recovery strategy? Did your fleet partner support you by:

It’s been 12 years, but if you’re not confident in your answers to these questions then it’s a good time to review the strength of your team roster. As your company races toward recovery, you need teammates that can pivot quickly and help reassess your funding structure, interest rate strategy, and supply chain plan. If you’re not comfortable with your partners’ agility, you can look for another anchor – a stable funding and procurement partner with the experience to help you make up for lost ground.

Ready, steady, go

You need a fleet partner to help your company avoid false starts and unexpected market hurdles when it comes to your finances. ARI’s procurement, finance, and vehicle supply chain teams have a winning track record for mitigating costs and expediting capital needs on behalf of our fleet customers during times of economic uncertainty. You can depend on the relationships we build on your behalf, based on trust, transparency, and clear expectations with other lenders and suppliers.

When factors outside of our control will impact your funding rates or delivery times, we avoid blind passes and help your company map out a better play. Working with other Holman companies, such as Auto Truck Group and Kargo Master, can help simplify your supply chain and run a steady race despite marketplace headwinds.

As the world strides toward pandemic recovery, ARI will go the distance with you. We have the time to discuss your funding and supply chain needs. Please contact us if there’s any high or moderate hurdles you’re looking for advice on, or to discuss how changes in your current fleet strategy could serve as a tailwind to restore the strength and security of your business. Help is just a hop, skip, and jump away. Request a call from a fleet specialist, download our latest eBook on sale and leaseback, or check out the latest COVID-19 supply chain updates.