About the client
Based in Cumbria, our client is a premium provider of private hire taxis and luxury and group transport covering the North of England down to Yorkshire, with an office in Bradford.
Why did the client need finance?
Clean air zones are set to be introduced in Bradford city centre in September 2022.
The main objective of the Clean Air Zone is to discourage the use of older, more polluting vehicles from entering the zone by setting a charge for entering – helping every ward in Bradford to benefit from cleaner air.
As part of the move, there will be more electric taxis - and private hire vehicles will become subject to a daily charge if they are not compliant.
In preparation, our client wanted to replace some of their existing fleet of taxis with 11 Skoda vehicles that met the clean air zone emissions standard and would allow them to drive through the centre of Bradford without charge.
How did ABL help?
The client needed to borrow around £138,000 to purchase the 11 vehicles on a hire purchase agreement over a 48-month period.
Our senior finance consultant, Luke, worked closely with the business owner to secure the most suitable loan facility through Lloyds bank with the cheapest possible rates.
It made sense for our client to finance the vehicles to ensure the cash that would otherwise have been used to purchase the vehicles remained in the business for cashflow purposes and taking into consideration that the new vehicles will depreciate - meaning a 48 month hire purchase term made the most financial sense.
A word from the client…
“ABL have supported us with over 17 finance deals in the seven years we have worked with them, and we trust them entirely to help us achieve the outcome we need. When we were looking to upgrade our vehicles and needed to secure finance to do so, we knew ABL would be able to make it happen.”- Company Owner
If you want to find out further information about this topic you can get in touch with Alex via email or call her on 07903 769037 to talk through your options.