Fuel Finance
The fuel industry:
In South Africa, the fuel industry is a highly competitive space. Fuel is transported domestically to depots, storage facilities, and various customers via three channels:
- own distribution by oil companies
- branded-marketers
- independent fuel wholesalers
These players in the industry form a hierarchical structure, and it is often the oil companies and branded-marketers who dominate, due to the financing that is at their disposal.
Independent fuel wholesalers:
Looking into the fuel sector more closely – the independent fuel wholesalers [can be 1st, 2nd or 3rdt tier, depending on their size] adopt the following models:
- They re-sell diesel – WITHOUT their own fuel tanker fleet NOR their own depots
- They re-sell diesel – WITH their own fuel tanker fleet AND/OR their own depots
Where Spartan comes in …
As a company that is dedicated to backing entrepreneurs, we understand that securing Fuel Financing in the diesel sector is extremely difficult. It is especially difficult to secure financing due to the lack of terms and cash-on-cash (COC) payments the diesel industry demands. Spartan has done extensive research into the fuel and diesel sector, and thoroughly understands the space. Our finance allows us to back these fuel distributors because we understand your growing pains, and have the solutions to over come them.
Our solution to your challenge …
your challenge
- cash upfront and cash-on-cash (COC) needed to pay for daily wet stock purchases of diesel
- consequence: constrains your cash flow and puts a handbrake on your growing volumes
our solution
Working Capital Finance – Spartan will solve your Wet Stock supply constraint with our Fuel Finance
your challenge
- financing your fuel storage tanks on your/your clients’ premises
- difficultly in financing such a specialized asset means using your precious cash to acquire these fuel storage tanks instead of using that cash for diesel wet stock
- financing your fuel tanker fleet often means banks will require your precious cash, as a deposit/to pay the VAT upfront – sacrificing your available cash for diesel wet stock purchases
our solution
Specialised Asset Finance – Spartan has designed unique financing products for the Fuel sector, our 100% Specialised Asset Finance helps you grow by financing your fuel storage tanks and fuel tanker fleets