‘O’ no! Why lack of finance can hold back haulage firms
With haulage companies required to hold cash reserves as a condition of obtaining an operator’s licence, access to finance can be a major barrier to growth.
Where a company needs to quickly scale up its activities, it not only needs to cover the cost of new vehicles but also increase its financial reserves. The current conditions for a standard ‘O’ licence require the applicant to have a certain amount of available funds showing in their account and this also applies to companies that use contract or hire vehicles. These conditions aim ensure that companies have sufficient funds to maintain vehicles when needed.
Fortunately, an invoice finance agreement or overdraft facility can help to provide the cash reserves required and is an ideal solution for those businesses which have landed a larger contract.
For example, when a haulage business secured a contract with a large chain store, it needed to lease an additional three trucks. Ashley was able to provide a finance facility totaling £60,000 to help the company to meet its ‘O’ licence obligations, and support its cashflow to aid the running costs and drivers’ wages for the additional vehicles.
If you need finance to support an “O” licence, please don’t hesitate to get in touch with our experienced team on 0161 233 6370… Just Ask Ashley