How Premium Finance Unlocks Value for Your HCV Clients

Published Date: 05/20/2024
Source: the Fulcrum Group

---

Sachin Govender, Managing Director at Fulcrum Premium Finance

In a recent article, Sachin Govender, Managing Director at Fulcrum Premium Finance, explored the

significant benefits that premium finance offers to brokers and their Heavy Commercial Vehicle (HCV)

clients amidst the rising challenges in South Africa’s fleet and logistics sector.

Heavy Commercial Vehicles (HCV) Nightmare

The risks associated with owning and operating trucks in South Africa and neighbouring nations are

formidable, with an alarming increase in truck hijackings and civil unrest-related incidents. These risks have

led to skyrocketing insurance premiums, placing additional financial burdens on fleet and logistics

enterprises. According to recent crime statistics, 1,996 truck hijackings were reported in 2023, nearly

double the number from the previous year. This environment has escalated financial strains on fleet

operators, compelling them to seek cost-effective insurance solutions to protect their investments.

From Broker to Strategic Finance Risk Adviser

Govender emphasises the evolving role of brokers in today's landscape, highlighting how integrating

premium finance into their service offerings can enhance client retention and attract new businesses

transitioning from merely arranging coverage to providing strategic financing solutions that align with their

clients' operational and financial goals.

Benefits for HCV and Fleet Owners

Premium finance offers several advantages to HCV and fleet owners. It enables them to safeguard their

working capital, spread out insurance premium expenses, preserve credit lines, access input VAT upfront,

and streamline the financing process without additional collateral requirements. This financial flexibility is

crucial for businesses operating sustainably and maximising growth.

As the industry progresses, premium finance is becoming crucial for fostering long-term, trust-based

relationships with clients and driving the overall success of brokers and their business clients.

For more information on how premium finance can benefit your HCV clients, please get in touch with

info@fulcrum.co.za

Source: "How Premium Finance Unlocks Value for Your HCV Clients" by Sachin Govender, Managing

Director of Fulcrum Premium Finance. (FA News, April 2024)