Driver hire firm geared up with £750,000 boost

DRIVER hire firm Meridian Driver has secured a £750,000 funding package to enable it to deliver a major contract.

Manchester-based Meridian Driver, which provides bus drivers to national operators, has been able to expand its operations with the invoice finance facility from Ultimate Finance’s North West office.

Meridian Driver has won a 12 month contract to supply and manage 90 drivers to operate in the Bristol area.

The company has recruited more than 70 personnel to date and is advertising nationally for the remainder. As many of the drivers will be relocating from across the UK for the duration of the contract, Meridian Driver is responsible for organising and paying for the accommodation, as well as the drivers’ weekly payroll.

With some bus operators having 90 day payment terms, the amount owing from outstanding invoices can be as much as £1 million for 90 drivers at the end of the three months.

To meet its cashflow needs, Ultimate Finance has provided the company with a facility which means the invoices are paid shortly after they are issued with the money paid back to Ultimate Finance when the bus operator pays.

Stephen Booth of Meridian Driver said: “Founders of the company, Paul Watson and Oliver Bowler, are well respected throughout the bus and coach industry, as they have been recruiting and training drivers for almost a decade. They know the requirements within the sector and the way to recruit and manage reliable and experienced personnel.

“However when you are asked to supply 90 drivers you need a funding package in place to cover the huge amount of money that will be needed to cover the wages and accommodation costs. Not many companies have a million pounds set aside and banks are unlikely to lend that amount of money against a single contract.

“Rather than turn the contract down, because we were unable to fund it, we approached Ultimate Finance who agreed to provide 85% of the full invoice on this single debtor, which I believe is unique in the banking sector.

“Thanks to the facility we are able to continue to grow the company and provide drivers to other bus and coach companies across the UK.”

Regional director for Ultimate Finance North West, Mark Holland, added: “With traditional banks still reluctant to lend many successful SMEs are being held back because of a lack of funding. Meridian Driver is a case in point. It is a well-run business dealing with blue chip accounts so we had no hesitation in advancing them the funds so they could fulfil the contract. Rather than putting obstacles in the way, we look for the ways we can help to fund the cashflow.”