Volvo Construction Equipment Rents last week announced immediate plans to have more than 100 equipment rental franchise locations open throughout the United States by the end of 2005 and to provide more than $2 to $3 million per store in operating and inventory financing to assist qualified franchisees in getting their businesses up and running. The company’s plans call for continuing growth as franchises are added at locations throughout North America.
“The construction equipment rental industry is booming,” said Nick Mavrick, vice president of global strategy and marketing for Volvo Rents. “Our strong brand recognition, the growing demand for construction equipment, and Volvo Commercial Finance’s ability to provide a comprehensive financial package to qualified franchisees allow us to look to the future with great enthusiasm.”
Volvo Commercial Finance will provide, to qualified applicants, a comprehensive financial package including fleet financing, working capital, delivery vehicle financing and leasehold improvement financing. The amount of financing for qualified applicants can be significant and is averaging from $2 million and $3 million per rental center.
Mavrick added, “While capital is critical to the launch of a new franchise, equally critical is a financial sponsor that understands the construction equipment rental industry and the needs of these types of entrepreneurs. Through Volvo Commercial Finance, Volvo Rents franchisees have a financial partner that can support them in growth, versus a typical bank or other financial sponsor who may not have experience or expertise in the industry. Volvo Commercial Finance has committed substantial dollars to financially assist qualified applicants.”
As of mid-August 2004, Volvo Rents has grown to 48 locations in North America and serves more than 35,000 end-use customers.
Asheville, N.C.-based Volvo Rents debuted on the RER 100 in 2004 at No. 19.
