Agreement with FleetPartners
Sydney, Nov 21, 2014 AEST (ABN Newswire) - Cash Converters International Ltd (
ASX:CCV) is pleased to announce, that its wholly owned subsidiary, Green Light Auto Group ("GLA"), trading as 'Carboodle', has entered into an partnership agreement with FleetPartners for the provision of high quality fully maintained end of lease vehicles for re-lease to Carboodle's customers.
This partnership will provide a significant new platform for the growth of GLA's business.
As part of the agreement, FleetPartners has purchased the current fleet of vehicles owned by GLA on a sale and leaseback. GLA will use FleetPartners exclusively for all future vehicle leasing.
This new relationship for GLA has replaced the previous significantly more expensive financing arrangements with a third party.
Benefits
This transaction provides GLA with lower cost of funds on a go forward basis and a funding arrangement that doesn't require further capital from GLA for the acquisition of vehicles, leveraging FleetPartners highly efficient, low cost, capital markets funding platform.
FleetPartners will also provide fleet management services to GLA including the administration of GLA's warranty programme.
Mr Doc Klotz, CEO and Managing Director of FleetPartners said, "We are very pleased to partner with Cash Converters on this initiative creating a further opportunity to grow our end of term vehicle re-lease business with a well-known brand".
Mr Peter Cumins, Managing Director of Cash Converters said, "This arrangement provides a lower cost funding model with the capacity to support the planned growth of the Carboodle business.
We look forward to working closely with such an experienced partner". Carboodle is now well positioned for growth.
About Cash Converters International Ltd
Cash Converters International (ASX:CCV) is a franchised retail network listed on the ASX. It specialises in the sale of second-hand goods. The Cash Converters group employs modern retailing practices, professional management techniques and high ethical standards to the management of its stores throughout the chain which appeal to a wide cross section of the community. As a result, Cash Converters has been able to position its outlets as credible retail merchandise stores, resulting in a profitable market for the group.
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