Specialist Transport Firm Asset Finance

Background

Start-up, specialist transport firm that does huge mileages each year and required a huge number of vehicles in a short period of time and had a very active replacement cycle with vans lasting in fleet for little over 12 months.

Challenges

• New start business
• High milage vehicles
• High capital demands

Solutions

Initially 2 x £250k Credit Limits – 24m term to a balloon

Invoice Finance Line – £100k

By setting up two credit limits for the customer, they could pick and choose the terms they wanted to fund against – At the start, they used the credit limit with the least deposit while they were aggressively growing. They used the invoice finance line to give them more flexibility with their clients as they took on more new customers, contracts and staff. They then moved to the second credit line which required a larger deposit to fund replacement vehicles using the equity from the sale of the initial vehicle. The business uses credit line one for all new contract vehicles and credit limit two for all existing fleet replacements.