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A UK based taxi company was looking to expand their business to meet the demands of the market. The director was in search of financing solutions that would allow the business to gain more exposure and get more vehicles on the road to meet customer demands.
Through asset finance and an unsecured business loan, Millbrook Business Finance was able to assist in the growth of this taxi firm.
Client Background
An established taxi hire company with ambitious growth goals
Jamie is the director of a Cambridge-based taxi company in the transport and logistics sector. Established 12 years ago, the company provides reliable local and long-distance taxi hire services and nationwide airport transfers.
The Challenge
Overcoming visibility and expansion barriers to drive growth
Jamie faced two main challenges in driving the initial growth of his taxi company.
Firstly, he needed funding for a larger office to increase visibility in the local community, which would help attract more customers and enhance the company's local presence. Secondly, he required financing for additional vehicles to enable quick growth, allowing the business to meet increasing demand while protecting cash flow. These challenges were crucial for establishing a stronger market position and ensuring the business could scale effectively.
The Solution
How Millbrook Business Finance Helped
Unsecured Business Loan
To achieve these goals, Jamie opted for an unsecured business loan to buy out a local competitor. This loan also covered the enhancement of the associated business, including a garage and workshop for MOT servicing and bodyworks, totalling £500k.
Benefits of Business Loans:
- No need for collateral
- Quick approval and disbursement
- Flexible repayment terms
- Facilitates large purchases and expansions
Asset Finance
Additionally, asset finance totalling £200k was used to fund commercial vehicles, which provided an easy route to quick growth and protected cash flow.
Benefits of Asset Finance:
- Spreads the cost of purchasing assets over time
- Preserves working capital
- Flexible terms and repayment options
- Enables businesses to acquire essential equipment without large upfront costs
The Results
Securing market dominance and unlocking new growth opportunities
The business successfully bought out the competitor, leading to accelerated growth and a monopoly on taxis in the local area. Further funding has already been secured for purchasing an additional office, carwash, and secure parking
space. This has resulted in improved profits and balance sheets, positioning the business for even more success and making it easier to secure additional growth funding in the future.
"For several years now, we have been collaborating with Ray. He has earned our trust by consistently offering a variety of products that have supported our growth initiatives. Whenever I need to discuss a plan with him, I can easily reach out and he is always willing to share his insights and recommendations.
This level of dedication and commitment to our success is truly admirable. Ray's professionalism and willingness to go above and beyond for our company have made him an invaluable partner. We look forward to continuing our successful collaboration with him in the future."
Summary
With the strategic use of a business loan and asset finance, Jamie's transport and logistics company has significantly expanded its operations and market presence. The acquisition of a local competitor and investment in essential infrastructure have not only accelerated growth but also ensured a strong financial foundation for future success.
Ray McAuley, business finance specialist played a crucial role in facilitating this journey, providing the necessary funding solutions to overcome challenges and achieve business objectives.
Get in touch to discuss your business financing needs with one of our experts. Alternatively, apply for business finance with Millbrook now for an asset finance solution that can fuel your business growth.
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