Alliance & Leicester cuts fleet funding
19 March 2009
Alliance & Leicester, one of the largest fleet finance providers, has stopped funding brokers and independent leasing firms in order to focus on its direct to customers business.
In a statement the company, owned by the Santander bank, said: ""Following a review, we have taken the decision to cease providing undisclosed agency contracts. This type of contract is provided to fleet companies, which then offer fleet services to individual businesses.
"In October 2008, Alliance & Leicester became part of Santander. Following a review of our services, we have taken the decision to focus on relationship-led banking, in line with Santander's business model."
The move follows Alliance & Leicester's own decision to increase its business in the direct-to-fleet market, which started toward the end of 2007.
Speaking to BusinessCar at the time, James Comrie, former head of wholesale finance at Alliance & Leicester Commercial Bank, said he was targeting 200-plus fleets that own their cars outright
Comrie added that his division had more than £1 billion-worth of vehicles on his books and was involved in funding contract hire firms, including Zenith, Ogilvie and Arnold Clark, and funding daily rental fleets such as National Car Rental and Hertz.
BusinessCar understands that National Car Rental, now part of Europcar, ended its funding agreement with Alliance & Leicester at the end of 2007.