Expand your waste management fleet with financing

Industry: Customer story

Growing your business in tough economic times takes a laser sharp focus and a partner who shares your vision and drive. Valoriza, a leading supplier of waste management and collection services, made the decision to seek a financing partner to support their expanding fleet solutions demands. By partnering with DLL, Valoriza was able to access flexible and comprehensive financing solutions to invest in their fleet and build a competitive advantage in the struggling market.

Background: Who is Valoriza
Founded in 1982, Valoriza Servicios Medioambientales (Valoriza) was integrated into Grupo Sacyr, an international player in construction, concessions and services in 2005. Valoriza leads Sacyr’s environment division, which manages street cleaning concessions and city center waste collection from its headquarters in Spain. This includes underground containers, gardening and green area maintenance, parking meter management, and vehicle tow truck and removal from public thoroughfare services as well as waste treatment and management.

Challenge: High upfront investments in fleet solutions
Valoriza’s services are targeted towards municipalities with a goal of penetrating the public sector. As municipalities are experiencing tough economic times, suppliers are left struggling to find ways to do business with them. “In our national market of Spain, we are focused on growing our revenues in the public sector which can be a challenge for municipalities that have liquidity and cash constraints,” stated Rafael Gómez de Parada, Chief Financial Officer at Valoriza.

A typical waste collection vehicle can cost up to € 200,000 and many of Valoriza’s target projects may require a number of these vehicles. Luis Botía, Controller at Valoriza explained, “every time we win a public contract for waste removal or waste treatments, we have to invest high amounts upfront that will be paid back over eight years.” Parada continued, “our business investments usually involve various waste collection trucks, cleaning vehicles and waste containers.”

Faced with the decision to grow their business or turn down new public contracts, Valoriza made the decision to seek a financing partner to support their expanding fleet solutions demands. “We needed a financial partner that could be flexible. We wanted a partner willing to analyze our business model and see how we could finance it,” stated Parada.

Solution: Flexible fleet solutions financing
Emilio Silva Peña, Fleet Solutions Account Manager at DLL, worked with Valoriza to build the right financing program. Peña shared, “one important need for Valoriza was to have a partner who was willing to finance a variety of multi-branded assets.”

He continued: At DLL, we always adapt our offerings to meet our customers’ specific needs and thanks to our fleet-centric approach we developed a comprehensive mix of financing solutions to cover Valoriza’s vehicles and about two thousand containers.

Fleet solutions financing is new for the waste recycling market. Valoriza benefits by having one finance partner who helps them to provide capital, customized financial solutions and helps to control the fleet. Ultimately, Valoriza selected DLL as a financing partner to support their investment capabilities. “We chose DLL to strengthen our investment capacity for the public contracts we bid on,” says Rafael Gómez de Parada, Chief Financial Officer Valoriza.

In our national market of Spain, we are focused on growing our revenues in the public sector which can be a challenge for municipalities that have liquidity and cash constraints, "

Results: Increased investment capacity and reduced operation costs
By taking a partnership approach and maintaining an open dialogue, the DLL team was able to develop a strategic understanding of Valoriza’s business needs which helped them close more deals. “In one public tender we came up with a tailored financial product that helped Valoriza secure a € 1 million project,” stated Peña.

Valoriza is now exploring business development with waste treatment plants that require specialized investment strategies including financing options. DLL’s international reach will ensure that Valoriza has a global financing partner for the future. “DLL is one of the main finance companies that has supported us in this growth. Our account manager is able to provide solutions to every single investment challenge we have raised. That’s why we seriously consider all of the products DLL has offered us,” stated Botia.

Investment in fleet expansion can be a significant growth blocker to businesses that have not sought out financing solutions. Valoriza is an excellent example of a business that took a proactive approach towards seeking a financing partner like DLL to increase their investment capacity and reduce their total cost of operation (TCO).