UDC Finance

Date: 14.02.2013

After seeing a media release announcing UDC Finance lifting its profit by 31 percent, we thought it would be good to find out a bit about them and how they can help Deals on Wheels readers with purchasing trucks and equipment. Rather than speak to some PR guru, we went to the head of the food chain and spent some time with CEO, Tessa Price.

UDC Finance

DOW: What is your role with UDC Finance?

TP: I'm the CEO and a very proud Kiwi returning home after a 12-year stint across the ditch.

DOW: How long have you held the position?

TP: Since June 2012. Before that I was working in Australia for one of Australasia's largest banks.

DOW: Have you had any other roles within UDC?

TP: Yes, I actually started my career as a graduate at UDC in 1997 and then went across and worked at UDC's sister finance company, Esanda, where I learnt everything there is to know about cars! You could say I'm a boomerang.

DOW: Who owns UDC Finance?

TP: We're a wholly-owned subsidiary of ANZ and have been since 1980. This gives us the best of both worlds and allows us to offer our customers holistic banking solutions. No other bank has a specialist finance company so UDC has a real point of difference to offer customers.

DOW: How long has UDC been operating in New Zealand?

TP: Since 1938 – it's actually our 75th anniversary this year, which we'll be celebrating with our customers.

DOW: Your media release says that UDC profitability is back at pre-GFC levels. What does this mean to borrowers?

TP: It gives our customers confidence that we can supply capital finance and demonstrates our longevity. We've always taken a long-term view and work with our customers through thick and thin.

DOW: Approximately, what percentage of your business, does loans for heavy machinery and trucks account for?

TP: Fifty percent. We are a great supporter of New Zealand businesses.

DOW: Generally speaking, what requirements from borrowers is UDC after when loaning money for trucks or equipment?

TP: We're a prudent lender and determine our lending on financial capacity and ability to repay.

DOW: Relating to the Deals on Wheels demographic, has there ever been a loan that you wished you hadn't turned down? If so, what was it for?

TP: Nothing springs to mind.

DOW: What is the average interest rate that finance companies are currently charging?

TP: Pricing is determined on risk and market conditions so it's difficult to quote an average rate.

DOW: In the current market, how much would someone expect to repay per month if they borrowed, say $100,000 over three-years to finance a piece of equipment?

TP: That would be about $3,100 per month.

DOW: Prior to signing a loan, can a borrower negotiate their interest rate?

TP: Our interest rates depend on the asset being financed and the individual circumstances of the borrower – our sales guys talk all this through with our customers when they approach us about a loan.

DOW: Can a borrower get pre-approval prior to finding a piece of equipment to buy?

TP: Yes, absolutely – it means they can spend the time to find the equipment/asset that's right for them without having the hassle of sorting out the finance – that's the dull stuff!

DOW: Do you loan to people with a chequered credit history, but sound business proposals?

TP: We consider each loan on an individual business merits basis, so I can't give you a definitive yes or no.

DOW: What points of difference does UDC have compared to other finance companies?

TP: We've been supporting New Zealand industry for more than 70-years – we speak to thousands of businesses, from forestry and agriculture to telecommunications and film production companies, about their financial plans and their asset requirements. This means we have an in-depth understanding of the industries and markets our customers operate in and we can see the potential beyond the immediate numbers – we get the bigger picture. With this knowledge and feedback from our customers, we've developed a number of finance solutions to suit a wide range of business requirements.

Our main expertise and focus is in providing asset-based finance to New Zealand businesses for purchasing plant, vehicles and equipment – helping them to grow and prosper. We do not rely on land or buildings as security, and we steer well clear of speculative property developments. Sticking to what we know best has meant we're still here today.

DOW: What is the best way for potential borrowers to make contact with UDC?

TP: Call us on 0800 500 832 or visit our website udc.co.nz where you can apply online.

Feel free to make a comment or ask us a question about this story on the Deals On Wheels page.