Asset finance funding was the ideal solution to ensure the firm’s determined plans for growth could be realised.
(PRWEB UK) 31 August 2012
A Coventry haulage company is expecting its turnover to rise to over £1 million after investing in new equipment using a £75,000 hire purchase facility from Lloyds TSB Commercial Finance.
Established in 2002, Steve Frowen Transport operates a fleet of eight vehicles to deliver aircraft engines and parts from manufacturers to airports across Europe for clients including Ceva Logistics, Lawton Tubing, Geberit and Kuehne and Nagel.
The business, which has 14 employees, has seen its annual turnover reach over £750,000 after securing several new contract wins.
To enable the firm to transport larger engines, its long-term banking provider Lloyds TSB Commercial introduced the company to Lloyds TSB Commercial Finance, which provided the asset finance facility enabling Steve Frowen Transport to purchase a stepped frame trailer.
The scheduled payment structure provided with this form of funding simplifies cashflow forecasting and ensures that the purchase of essential equipment does not put pressure on the business’ liquidity.
The new state-of-the-art trailer will enable the company to efficiently supply engines for both small and large aircraft. It also provides the firm with the capacity to move alternative cargos and therefore engage with a wider customer base.
As a result of this increased capacity, the firm expects its annual turnover to exceed £1 million in the next year.
The company is also set to employ additional people and purchase a ninth vehicle by the end of the year as it looks to build further on its recent growth and expand into new sectors.
Lloyds TSB Commercial Finance also provides Steve Frowen Transport with an invoice finance facility to generate cashflow for the business.
Steve Frowen, director of Steve Frowen Transport, said: “We provide an efficient, expert haulage service to a range of multi-national clients, which includes a strong 10-year relationship with Ceva Logistics. We are proud that the business has successfully expanded from one man and his van to what it is today.
“In order to stay ahead of our competitors and branch out into wider business opportunities, we turned to Lloyds TSB Commercial Finance for funding support to purchase the trailer. The hire purchase facility means that we don’t have to worry that the cost of the equipment could impact on the business’ liquidity.”
Andy Hodges, client manager at Lloyds TSB Commercial Finance, said: “The aviation industry relies on receiving quality, essential parts to a tight deadline, and Steve Frowen Transport is highly respected for the competent service it provides. The new trailer increases the variety and size of components it can transport and allows access to a wider range of clients.”
Nigel Arnold, business manager for Lloyds TSB Commercial, said: “We have worked with Steve since 2004 and, having built a strong relationship with the company, we knew that asset finance funding was the ideal solution to ensure the firm’s determined plans for growth could be realised.”