By Sachin Govender, Managing Director of Fulcrum Premium Finance
Premium finance offers significant benefits 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.
South Africa’s foremost independent provider of PREMIUM COLLECTION AND PREMIUM FINANCE
We offer innovative, effective premium collections and premium finance services to insurers, brokerages and UMA’s, allowing them to focus on what they do best: providing their customers with advice and service.
Fulcrum Collect (Pty) Ltd is an Authorised Financial Services Provider.FSP 50705
From Broker to Strategic Finance Risk Adviser
The evolving role of brokers in today’s landscape necessitates highlighting that they integrate premium finance into their service offerings to 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.