The Client
A family-owned haulage and logistics business based in the East Midlands, established for over 25 years. The business operates a mixed fleet of HGVs serving food manufacturing, retail distribution and automotive clients across the UK.
The Challenge
The business had secured a significant new three-year logistics contract with a national retailer, requiring them to add eight new HGVs to their fleet within six weeks. The total vehicle cost was GBP960,000. A previous approach to their bank had stalled due to lengthy internal approval timescales.
The ABL Solution
ABLs asset finance team identified that spreading the lending across multiple specialist lenders would both accelerate the process and provide the most competitive blended rate. We approached four lenders simultaneously, receiving credit approvals from three within five working days. The final structure was:
- Total facility: GBP960,000 across three lenders
- Structure: Hire purchase over 48 months
- Blended interest rate: 6.4% per annum
- Monthly payments: GBP22,800
- Deposit: 10%
- VAT deferred to month one to aid cash flow
The Outcome
All documentation completed within 11 working days. All eight vehicles were delivered ahead of the contract commencement date and the client retained its working capital intact.
We had been trying to get this sorted through our bank for three weeks with no progress. ABL had it done in under a fortnight. - Managing Director