At LDF we're helping retailers make sure they get there Christmas deliveries done in time! In the last year, there has been a 22% surge in investment in fleets of trucks, vans and other commercial vehicles as the rise of e-commerce leads to increased investment in delivery services.
Data from the Finance and Leasing Association shows that the value of asset finance used by businesses to fund commercial vehicles has risen from £4.9 billion to £5.9 billion in the last year (year-end October 31).
As e-commerce and m-commerce take a bigger slice of the retail sector, rising demand for delivery services is leading to increased investment in delivery vehicles by high street retailers, as well as the logistics services that deliver for online retail giants like Amazon and ASOS.
Retail businesses have now come to terms with the UK's 'retail revolution', and are now investing in the delivery vehicles that will allow them to compete in the online market, and keep delivery times within customers’ expectations.
Peter Alderson, our Managing Director, says:
“No retail business that targets long-term growth can afford to ignore online sales, and any major retailer without a significant online presence is already playing catchup. That has led to a big surge in investment in delivery vehicles over the past 12 months.”
"Consumers now expect their purchases to be delivered within a day or two, and a wait of a week for delivery might mean a customer goes elsewhere to buy. Retailers that have a reputation for quick delivery have a definite advantage in the online market."
Financing can be a cost-effective option for businesses that rely heavily on vehicles, as it provides for immediate use of the vehicles, while the cost is spread over a period of years.
Peter says: "Commercial vehicle finance means that retail businesses can avoid having to make substantial lump-sum investments that impact on cash flow, while still accessing the vehicles their businesses need to make the most of their online presence."