UCPB Leasing to fund refleeting of school service
THE LEASING arm of United Coconut Planters Bank has opened a new loan facility designed for school service operators who need to upgrade their fleets to comply with the requirements of the Land Transportation Franchising and Regulatory Board (LTFRB).
In a press statement on Monday, UCPB Leasing and Finance Corp. (ULFC) said the school service program facility would allow operators to replace a non-compliant unit among their fleet without putting significant pressure on their finances.
Under the loan facility, ULFC will finance up to a maximum of 90 percent of the cost of a brand-new vehicle, which covers vans, mini-buses, coasters, coaches, and buses from accredited auto dealers. The units should also be front-facing seats with seat belts in order to protect the passengers.
The company said the facility carried “friendly” terms, allowing operators to pay their loans at a maximum term of five years on a manageable interest rate.
One significant feature of the loan is that the operator could take a two-month break on their amortization payment every year within the term whenever their school goes on its annual summer break.
In explaining how the ULFC came up with the design of the facility, ULFC said school service operators who could not comply with the new regulation were at risk of losing their franchise that took them months, or even years, to obtain.
“One of the priorities of ULFC is to support small and medium enterprises including service operators who need fast and secure access to funds to ensure their businesses continue to thrive while meeting government’s requirements and, at the same time, make it safer for the precious passengers,” ULFC president Franco Magalong said.
“This unique financing facility aims to provide local businesses with the ability to draw funds whenever required, cover their long-term funding needs to modernize their vehicles and enable them to seize growth opportunities as the demand for service operators rise,” he continued.
ULFC’s facility is initially available to operators running a school service business in the following schools: Ateneo de Manila University, Miriam College, La Salle Green Hills, St. Paul University, St. Joseph’s College, Don Bosco Technical College, Claret School of Quezon City, St. Scholastica’s College and Assumption College.
The LTFRB – which oversees the operation of school services, among other public transport vehicles – mandated school service operators to remove fleet vehicles that are 15 years old and above, as well as those without specific safety features.
