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Lombard tells dealers it has money to lend for stocking finance

Lombard, the asset finance arm of RBS, is targeting dealers looking for stocking finance.

Lombard currently provides nine out of the top 10 dealer groups with stocking finance covering finance for new, used, demonstrator and rental vehicles.

This supported by a fully-automated system linked into dealer management systems, which is refreshed daily.

This is the only facility of this type currently available in the market place.

Dealers have been hit along with other sectors by the tightening of credit over the past 18 months.

However, Alex Baldock, managing director Lombard, which is sponsoring this year’s SMMT dinner to attract more dealer interest, told AM that the availability of credit is not an issue.

Lending, he explained, did drop during the credit crisis – last year the asset finance market shrank by 30%.

But predictions are the market will grow this year, although few figures are available to suggest by how much.

During 2009, Lombard grew its market share and is planning for “modest growth” in the overall market this year.

“We have increased new lending by a substantial double-digit amount,” Baldock said.

“There are too many people out there who do not know we are open for business.”

However, he said while Lombard is keen to attract new business, it will only do so if the dealers are stable.

Lombard will only work with the top tier dealers – those that understand Lombard’s lending qualification criteria – he said.

“We will not deal with those dealers who are not in that top tier, they understand our criteria very well,” says Baldock. “We are very careful – we have a responsibility to RBS.”

But he says Lombard is prepared to look at other dealers wanting to take advantage of its facilities. “We always have an interest in growing more,” he says. “We have that appetite, but we already have a good base.

“We have plenty of money to lend.”
 

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