A newly formed preferred supplier agreement between Absa Group and transport company Imperial Group is set to afford prospective Imperial customers improved access to vehicle and asset finance from the Barclays subsidiary.
As part of the deal, Absa would carry the credit risk while providing finance solutions to Imperial clients.
The bank’s full range of insurance options and products would also be made available.
Absa Retail Markets head Arrie Rautenbach said on Tuesday that Imperial clients would have access to flexible, customised finance options, which included financial leases, Islamic finance and value-added risk mitigation products.
He believed the bank’s understanding of the commercial asset finance industry, demonstrated through its maintenance of a profitable vehicle and commercial asset finance book, proved its ability as an ideal banking partner to Imperial.
“We work closely with clients across all market segments to offer effective funding solutions, and aim to capitalise on our strong existing business banking client base to make financing more accessible to the market, in line with our ambition to become the ‘go-to’ bank,” he commented.
Imperial Automotive Retail CEO Philip Michaux added that the agreement was an extension of an existing relationship between the two companies, and believed the alignment of both growth strategies would create multiple business opportunities.
Rautenbach noted that Absa had made its intentions around its Africa-focused strategy clear with the acquisition of Barclays' assets on the continent – a deal that the finance provider expected to be finalised by year-end.
“Through the combination of Absa’s capabilities and assets and Imperial’s ambitions, there is no doubt that, ultimately, this partnership will solve vehicle finance needs across African markets,” Rautenbach concluded.