Elizade JAC, SMEDAN target SMEs with truck financing – Daily Trust

Elizade JAC Motors has partnered with the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) to offer financing solutions that will enable small businesses to acquire light-duty trucks and reduce rising logistics costs.

The initiative targets SMEs that rely on hired vehicles, transporters or used trucks to move goods and supplies, providing access to JAC trucks with capacities ranging from 1.6 tonnes to 10 tonnes.

The models include petrol, hybrid CNG and diesel options.

Speaking at the engagement, Chief Operating Officer, Elizade JAC Motors, Arvind Bhardwaj, said the initiative was designed to help SMEs move from dependence on third-party transporters to owning productive logistics assets.

Bhardwaj said the company’s total-cost-of-ownership assessment showed that used vehicles could become more expensive over time because of maintenance, repairs, tyres, batteries and other running costs.

According to him, an SME could spend about N8.7 million more over five years by using a used vehicle compared with acquiring a new JAC truck, after associated ownership and maintenance costs are considered.

Senior Brand Manager, Elizade JAC Motors, Olumide Olaokun, said the entry-level 1.6-tonne truck is available in petrol and hybrid CNG variants, while the 3-tonne, 5-tonne and 10-tonne models are diesel-powered.

He said the hybrid CNG model can travel about 120 kilometres on a tank, potentially lowering operating costs for businesses in areas with access to CNG infrastructure.

Under the financing arrangement, customers can make an initial contribution and finance the balance through partner banks. One financing option presented at the engagement involves a 20 per cent down payment, an annual interest rate of 25 per cent and a four-year repayment period, with monthly repayments for the 1.6-tonne truck projected at less than N800,000.

Another option allows customers to pay 10 per cent to reserve a vehicle while the bank processes financing for the balance.

Zonal Coordinator, South-West Zonal Office of SMEDAN, Olukayode Shode, urged business owners to take advantage of the initiative, describing access to affordable productive assets as critical to SME growth.

He said the initiative aligns with the government’s SME development agenda by improving access to finance and productive assets, noting that transportation remains a significant operating cost for many small businesses.

Elizade JAC Motors said customers would also benefit from a three-year warranty, three years of basic servicing and access to about 39 service centres. Attendees at the engagement were offered a two per cent discount on the vehicles.

The company said the initiative is open to business owners generally, although SMEs remain a major focus, with the broader objective of helping businesses convert recurring transportation expenses into ownership of productive assets.