Case Study: Minibus for Large Bus and Coach Operator

The Challenge

One of the largest coach and bus operators in the UK. With a strong market presence, the operator has established itself as a reliable choice for transportation needs in the region. Historically, the operator has funded its fleet through Hire Purchase agreements with leading financial institutions, specifically Lloyds and NatWest, accessing credit lines of £5 million with both banks. The operator faced significant pain points when interacting with banks, including slow contact points and the frustration of needing to submit information multiple times to different institutions. This complicated and protracted financing process hindered their operational agility. With a goal to streamline financing processes, the operator sought to explore quicker and more cost-effective options, prompting them to consider working with a broker that specialises in commercial vehicle finance. The client wished to fund a £55k minibus for private contract work and found Lloyds and NatWest prohibitively more expensive.

Our Solution

The operator decided to engage with a broker as their sole point of contact, which significantly simplified the financing process. The broker facilitated a thorough understanding of the operator's future purchasing plans and current financing arrangements, ensuring tailored solutions. The broker conducted a thorough pricing comparison, obtaining quotes that were more favourable than those offered by Lloyds and NatWest, with lower interest rates and more attractive terms. The small balance was funded over 3 years, 5% deposit and a VAT deferral to minimise cash out of the business as they approached the end of their financial year. This bespoke commercial vehicle finance arrangement ensured that the client could access funding quickly and more affordably, while maintaining flexibility around their wider fleet strategy.

The Result

The broker liaised seamlessly with vehicle suppliers, resulting in quick funding approvals. This efficient communication ensured that the operator could acquire vehicles without unnecessary delays, allowing for a smooth operational flow.

By choosing the broker, the operator benefited from lower interest rates and improved terms, enhancing their overall financial health and making vehicle acquisition more affordable. Feedback from the management team highlighted their satisfaction with the broker services. They expressed confidence in the broker's ability to meet current and future financing needs, paving the way for additional financial facilities with the broker as their relationship matures.