The Vanarama Bond is a very straightforward idea – you loan money to us and we agree to pay you interest quarterly per annum and redeem your initial investment (the ‘principal’) when the Bond(s) mature in 4 years. The Vanarama Bond will be issued by Autorama UK Ltd.
We have designed the Vanarama Bonds to be a simple investment. For an initial investment of £500 or more, Autorama UK Ltd will provide registered holders of Vanarama Bonds (“Bondholders”) with a fixed-rate return of 8% gross interest per annum over the course of an initial four year term payable in cash.
At the end of the initial four year term and on every anniversary thereafter, you have a choice: either continue to hold the Vanarama Bonds for another year on exactly the same terms or give us six months’ notice and we’ll redeem your Vanarama Bonds. On maturity of the Vanarama Bonds, the full amount of your initial investment will be repaid without any deductions or charges.
Please note: Vanarama Bonds are issued on a first come, first served basis.
Use of Proceeds:
Our plan is to raise up to £3.4 million so that we can hold more new ready to go stock. In doing so, we intend to significantly improve lead times to customers and therefore make our overall proposition significantly more attractive and enticing to new customers and to existing customers approaching the end of their leasing period.
Our business ethos is to continually look for ways in which we can improve the service we deliver to our customers. Can we do it in a better, faster, simpler, more convenient and more cost effective way for customers?
We identified a key area in which we can deliver an even more attractive proposition to our customers and in doing so, further cement our position as the number one independent van leasing broker in the UK.
To ensure customers can be behind the wheel of their brand new van in just 5-7days. We can only achieve this by making a significant upfront investment in physical stock.
And this is how we are going to use the funds we will raise from the bonds.
We currently quote a lead time of 2-3 weeks for a customer to take delivery of their brand new van. Research with our customers including anecdotal comments when customers have spoken to us on the telephone has revealed room for improvement. Today’s customer rightly wants it all; great service, a great deal, speed and ease of ordering plus rapid delivery of their ‘purchase’.
Our buying power enables us to negotiate competitive deals with vehicle manufacturers and we will use this power to hold more ready- to- go physical stock so that customers can have their van in record breaking time. Overall, we will deploy up to £5 million for this purpose and we will self-fund the remaining balance.
By doing this we believe that we can significantly improve lead times; deliver an even better, swift and more responsive service to the customer who wants their van now; widen the gulf between ourselves and competitors and strengthen ourselves as the leading and most customer focused provider of commercial vehicles in the UK. We believe that it will give us a significant commercial advantage but above all else it fits in with our strategy of continually placing the customer at the centre of our universe.
This all adds up to an irresistible combination for our customers large and small regardless of the sector they hail from or their occupation.