DF Capital creates bespoke finance facility for Avant
DF Capital started working with Avant Tecno UK in 2018 and since then has provided the business with a finance facility which has helped the business expand and support its growing dealer network.
Based in Norwich, Avant Tecno UK is a subsidiary of Avant Tecno Group, a Finnish family-owned company with over 30 years’ experience in providing high quality compact multi-purpose loaders and attachments. Avant machines are exported to over 55 countries and today there are over 75,000 loaders working all over the world. They have been available in UK for over 20 years, a versatile alternative to compact tractors or skid steers. Customers include farmers, landscape gardeners, local authorities, horse owners, construction and plant hire companies, and private individuals.
Over the years, Avant dramatically expanded the sales of its products via a growing network of regional dealers. Orders have been consistently strong, and the Avant team wanted to provide dealerships with an option to reduce their cashflow for new machines. At the time, Avant did use other funders but approached DF Capital, because of its expertise in the agriculture sector and to understand if a bespoke inventory finance solution could be created.
The team at DF Capital structured an inventory finance ‘pay as sold’ floorplan solution, whereby Avant was paid upon manufacture/delivery, and the dealers then pay DF Capital upon final sale to their customer. Each qualifying dealer has a facility which meets their specific needs relating to tenor, repayment, and costs.
Since its launch in the UK in 1999, the Avant team has expanded to over 250 people in Finland plus a team of ten in the UK, and has sold more than 5,000 loaders through a network of 21 regional dealers and 30 sales outlets. Recently the company has launched a new product over here and is now also offering Leguan Lifts through selected dealerships. The majority of Avant’s book is now with DF Capital and the facility that is in place supports the continued growth of the business.
Julia Borge, industry leader – agriculture, at DF Capital said: “Avant is a great business that is going from strength to strength and, from the very beginning, we knew that DF Capital would be the perfect financial partner to it and its network of dealers. No other manufacturer offers the range of compact loaders and attachments that Avant does, and now with an extended product range, it’s a pleasure to be part of its journey.”
Raimo Ala-Korpi, managing director of Avant UK, commented: “Product development, process innovation and unique design have always been and will be the most important factors in Avant’s success. There’s a huge opportunity for us in the UK and the support that DF Capital provides us with is invaluable. The team’s extensive knowledge of the industry, together with its flexible funding solutions contribute to Avant’s and their dealers’ success and growth plans. During the pandemic, flexible floor plan solutions have been key to enable our dealers to keep suitable amount of new stock in these unprecedented times.