Case Study: Financing the haulage industryPublished on 26th October 2015 2015-10-26T17:17:04+00:00 - Last update on 17th March 2020 2020-03-17T17:13:27+00:00
This week is National Lorry Week, so we’ll be spending a little time talking about finance solutions for hauliers. To begin, we thought we’d share another real-life solution we found to a tricky funding problem – this time, helping a haulage firm take on a new contract and expand their business.
The client’s challenge
A growing haulage firm recently won a new contract. Unfortunately, they couldn’t take it on without purchasing five new trailers – and they couldn’t afford that before they paid off a large VAT bill due later in the year. Their advisor, unable to find funding that fit these requirements, came to us.
We met with the company and their advisor so we could understand the peaks and troughs of their seasonal cash flow better. We suggested – and they agreed – that the best solution was to create a bespoke finance agreement that would help them to manage the large VAT payments that came as a result of seasonal cash flow.
In a meeting with the haulage firm, their advisor, and one of our key funders, we constructed a hire purchase agreement which consisted of a low deposit coupled with a VAT deferment on the purchase price of the trailers, solving both problems in one. Thanks to the customised finance we were able to arrange through our wide network of business lenders, the firm was able to take on the new contract and continue to grow.
If you want to be part of a story like this one, click here to get in contact with our finance team. Or contact us about haulage services financing today.
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