Logistics business in gear for growth with £1m banking deal
A TRANSPORT logistics business which launched last year has secured a £1m banking deal to boost its growth plans.
Central Courier Solutions based in Solihull has agreed the invoice finance facility with Aldermore, the specialist lender and savings bank.
The business was set up by David Blackwell employs around 40 staff.
The funding agreed with Aldermore is being used to fund future growth, enabling the business to increase the number of vehicles it operates.
All vehicles that the business operates have to be specified on its licence, and the terms of the licence mean that Central Courier Solutions needs to have a specific amount of capital available in the business for each vehicle in its fleet.
Operating more vehicles requires the company to set aside more capital, and the funding has therefore enabled the business to increase the number of vehicles it operates from 11 to 74, helping it to serve more customers and grow revenue.
Mr Blackwell said: “This funding will enable us to expand the number of vehicles we have at our disposal which will help us to meet increasing customer demand, and ultimately grow the business. Before we obtained this funding from Aldermore, we had a lot of irons in the fire but we had to sit on our hands until we could expand our fleet. Obviously this impeded the business’s expansion but this funding will unlock the company’s growth potential and I’m looking forward to developing the business.”
Tom O’Dell, business development manager for invoice finance at Aldermore, said: “This case shows just how important funding is to business growth. At some point customer demand is likely to outgrow the resources that most developing businesses have available, and external funding is often essential if businesses are to continue on their growth trajectory without interruption.
“We’re pleased to have been able to provide funding to Central Courier Solutions at such a key time in their development, and we look forward to seeing the company continue to grow in the future.”
