Financing a military vehicle purchase — Options and advice

Buyers of ex-army military vehicles have very different profiles, and so do their financing needs.

Professional buyers in France:
- Construction firms, foresters, farmers in difficult areas
- Service providers to NGOs
- Transport companies in remote areas
- Collectors and enthusiasts (collector vehicles)

Export buyers (mainly Africa):
- Mining and oil companies
- Construction and public-works firms
- NGOs and humanitarian organisations
- Used-vehicle dealers
- Local governments and armed forces

Each profile has specific financing options. Here are the main solutions.

For private buyers and small businesses, cash payment remains the simplest option. Lys Tout Terrain accepts payment by bank transfer (SEPA or international SWIFT), and in some cases, by bank cheque.

Advantage: No financing costs, simple transaction.
Drawback: Large cash outlay.

Businesses can finance their purchases via a professional loan from their bank or a specialised credit institution.

Available credit types:
- Leasing: the bank buys the vehicle and rents it to you, with a purchase option at the end of the contract
- LOA (Lease with Purchase Option): similar to leasing but with more flexibility
- Classic bank loan: repayable over 12 to 60 months

Institutions specialised in industrial-equipment financing:
- Regional banks with a business department
- Natixis Lease, BNP Leasing, Société Générale Equipment Finance
- Bodies specialised in financing African equipment (Africa Finance Corporation)

Lys Tout Terrain can provide all the required documents (detailed quote, technical sheet, market value) to put together your financing file.

For African buyers, international financing often goes through banking instruments:

Documentary letter of credit (L/C):
The most secure payment method for both parties. The buyer's bank guarantees payment provided the seller meets the documentary terms (presentation of transport documents, invoices, certificates).

Stand-by Letter of Credit (SBLC):
A bank guarantee triggered only in case of payment default. Used for long-term relationships between trading partners.

Documentary collection (D/A or D/P):
The seller's bank sends the transport documents to the buyer's bank, which releases them against payment or acceptance of a draft.

CAD (Cash Against Documents):
Release of shipping documents against immediate payment.

Lys Tout Terrain regularly works with these instruments and can guide African buyers in setting them up.

In some cases, Lys Tout Terrain may offer instalment payments for regular customers or large orders:

• Deposit on order (30 to 50% of the price)
• Balance before shipment (before the vehicle is loaded)

This option is reviewed case by case, on presentation of references and trading history. Contact us to discuss your specific needs.