Toyota, NIC Bank ink truck financing deal
NIC Bank #ticker:NIC and Toyota Kenya have entered into an assets deal that will see enterprises access 80 percent financing when purchasing Hino trucks from the auto dealer. The trucks available for financing include three tonne (300 series), four and six tonne trucks (500 FC series) with Sh3.3 million, Sh3.45 and Sh4.5 million bodies, respectively. The three trucks are manufactured by Hino Motors, a Japanese maker of light and commercial vehicles.Prospective buyers will have up to five years to repay the asset loan and a grace period lasting two months. The vehicles will be the principal collateral for the loan.“We have seen a spike in demand for buses and trucks by businessmen in various sectors that include manufacturing and agriculture. But these people lack financing and this is the reason why we have brought on board a partner that will meet that demand,” said Toyota Kenya managing director Arvinder Reel.”The partnership for Hino trucks presents a strong value proposition to small medium enterprises (SMEs) and individuals customers who are keen on expanding their businesses and buying new assets but face strained cash flows due to ever fluctuating economic situations in the business environment,” said NIC Bank Executive Director Alan Dodd.“The repayment period ensures that the SMEs have enough time to pay for asset while ensuring that their businesses grow,” said Mr Dodd.Hino trucks are said to be among the most fuel efficient and reliable commercial vehicles with low emissions globally.The Toyota and NIC deal comes just two weeks after Isuzu East Africa and Co-operative Bank announced a one year partnership that will see its mutual customers access 95 percent financing for vehicles assembled by the dealer.