Background
CuraFin Management Company (Pty) Ltd (“CuraFin”) is a company that creates, delivers and manages Owner-Driver Programmes using fleet and fuel management technology and strict contractual relationship management.
Their focus is to enable drivers to create and manage their own business, providing high quality logistic services to clients. In the long run, the goal is to create a sustainable business for the driver allowing them to grow their own skill-base and more importantly, expand their business to new clients and sectors.
CuraFin provides business solutions and management support to their drivers. Helping them navigate a variety of challenges and different elements when dealing with and structuring Owner-Driver Programmes. Through continued support, the Owner-Driver’s business is enhanced and more likely to become profitable and flourish.
A key feature of the programme is to facilitate the support of Enterprise Development and Empowerment initiatives through the providing of services to the business owner. In the long run, the Owner-Driver Programme will typically improve cost efficiencies and service levels towards clients.
The Challenge
The Owner-Driver business is a relatively small company, facing the same challenges any new small business would face. CuraFin offers a complete back-office solution, taking care of all administrative and accounting functions on their behalf. This allows the driver to align his/her focus accordingly and therefore complying with the service level agreed with their client.
However, the key constraint that Owner-Drivers face is the lack of capital to purchase their revenue generating asset, the vehicle. This slows growth and ultimately leads to more and more challenges down-stream. These challenges being that they cannot purchase further vehicles or employ additional staff. Without the vehicles, the driver would not be able to provide their delivery services resulting in a loss in revenue.
In this context, CuraFin required a funding partner to assist them in providing the driver with the full Owner-Driver Programme requirements, including access to vehicles.
The Solution
As a Section 12J company, Westbrooke Alternative Rental Income Assets Limited (“Westbrooke Aria”), has a mandate to partner with operators/entrepreneurs in providing their rental businesses with growth capital.
Westbrooke Aria established a partnership with CuraFin in order to support them in growing their Owner-Driver Programme. Westbrooke Aria recognised the need for a capital solution and aided CuraFin by granting access to funds in order to purchase vehicles for the Owner-Driver.
This partnership is comprised of Westbrooke Aria and CuraFin investing in a rental business which purchases a fleet of rental vehicles. These vehicles are then rented to approved Owner-Drivers associated with the CuraFin Owner-Driver Programme, giving the Owner-Drivers access to the very tool they need to generate revenue and grow their business.
The Result
Westbrooke Aria’s deep understanding of the underlying fleet industry resulted in a successful business relationship with CuraFin and the Owner-Drivers, as they were attracted to the flexibility and partnership aspects of the capital that Westbrooke Aria could invest as opposed to the options available to them with traditional financial institutions.
Brendan Nunan, the owner of Curafin Manco has said: “Westbrook Aria has made a difference; the fund has re-ignited my business; Without its investment we would not have been able to secure over 100 jobs. Working with Aria has changed my business, thank you.”
With the injection of Westbrooke Aria’s capital, CuraFin has been able to put 64 new vehicles on the road to date. Giving 64 drivers the opportunity to establish and expand their own small logistics business.
Westbrooke Aria still has over R30m in capital to allocate to another 70 vehicles over the coming months. This will allow additional Owner-Drivers to develop their businesses and set them up for success. It is estimated that revenue generated by the Owner-Drivers using these vehicles will be in excess of R55m a year.
Westbrooke Aria continues to support the strong relationship with CuraFin as well as the growth of the Owner-Driver businesses.[/vc_column_text][vc_column width=”1/12″][/vc_column][/vc_row]
