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LEVC looks to offset PiTG with new TX finance offer

 960 640 Stuart O'Brien
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LEVC has unveiled a new finance deposit contribution for its TX taxi, which is says fully offsets the recent reduction in the Plug-in Taxi Grant (PiTG).

Making a £1,500 deposit contribution available for an initial period on all new TX taxi models across all finance types offered by LEVC Financial Services with zero customer deposit and at a subsidised finance rate of 10.51% APR representative, the new campaign offsets the PiTG reduction, which was reduced from £7,500 to £6,000 at the start of the month.

Launched in 2018, more than half of London’s entire black cab fleet now zero-emission capable, with the TX also on sale in over 25 countries across the globe, playing a vital role in offering clean green, and accessible urban mobility.

The new finance offer follows LEVC’s recent announcement regarding its new pure electric vehicle technology, which it says will transform the brand from a high-end taxi manufacturer to a leading provider of zero emission e-mobility solutions. LEVC claims its Space Oriented Architecture (SOA) is the world’s first EV platform focused on setting new standards for onboard space.

The copay says the architecture will bring interior-optimised, zero-emission mobility to more consumers than ever before, while enabling LEVC to enter new sectors, outside of its existing models.

As the UK’s electric TX fleet increases, LEVC says so does the positive contribution this purpose-built vehicle is making to cities. Powered by its eCity technology, LEVC’s electric TX taxi has travelled more than 780 million miles globally and it claims has prevented more than 240,000 tonnes of harmful CO2 emissions from entering the world’s atmosphere.

Chris Allen, Managing Director, LEVC, said: “Demand for our award-winning TX continues to accelerate, but with the recent £1,500 reduction in the PiTG coupled with currently high national interest rates, drivers need support to continue their transition into new, green taxis. LEVC recognises this and it’s why we’re making this new contribution and subsidised APR finance offer available, initially bridging the gap for our customers. Looking ahead, LEVC will continue to work closely with government to provide long term support to the trade, including provisions beyond the current one-year PiTG extension.”

Driving Success: How haulage businesses and fleets can utilise finance facilities in 2024

 960 640 Stuart O'Brien
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The UK haulage and freight sector has faced a number of challenges over the past few years – inflation and fixed costs have rocketed, and the uncertain legacy of Brexit has made UK exports less lucrative to EU importers.

Now, as we move towards a more sustainable future, the impetus lies with UK fleet operators and haulage businesses to update their operating practices in line with our net zero goals. However, with the myriad challenges facing the sector, making the significant internal investment required can be a challenge.

Here, the asset finance experts at Anglo Scottish take a look at the 2024 landscape for the UK’s haulage businesses and consider some of the facilities available to increase agility, grow sustainably, and adapt in the face of change…

The outlook for UK haulage

A number of UK haulage firms have entered administration over the last six months – in September 2023, Lloyd Fraser, one of the UK’s largest milk haulage firms, was forced into administration. That same week, multiple members of the KNP Logistics Group suffered the same fate.

A variety of firms have also entered administration in the first month of 2024, with Harleston-based Bomfords Group and Suffolk’s Magnus Group amongst the companies forced into administration.

Road haulage has come under further threat in recent months with the Transport Secretary’s commitment to growing the UK’s rail freight industry by 75% by 2050. Part of this claim hinges on the removal of petrol HGVs from UK roads.

Combatting these issues

In spite of these cases, there are examples of UK logistics and haulage businesses using external funding facilities to improve their future outlook and spearhead further growth.

In recent months, family-run companies like the North West’s Fox Brothers and Northamptonshire’s Linkline Transporthave benefitted from the injection of third-party funding. This helps to spread the cost of further investment in the company and fast-track growth plans.

“In line with rising overheads, maintaining financial agility is utterly vital for today’s haulage businesses to survive and ultimately thrive,” comments Carl Johnson, UK Sales Director at Anglo Scottish Asset Finance. “Often, firms are unaware of the available options to help them become more competitive going forward, and which of these options are best suited to their circumstances.”

Utilising invoice finance

Businesses working in the haulage sector are often susceptible to cash flow issues, thanks to the common practice of invoicing. 87% of businesses complain that their invoices are paid after the due date, highlighting that over-reliance on invoice payments is becoming a serious issue for businesses.

Late invoice payments make it difficult for haulage or logistics businesses to maintain a healthy cash flow, which can hamstring the company in the event of unforeseen costs such as breakdowns or collisions.

Invoice financing allows your business to access up to 90% of the value of your unpaid invoices. This enables your business to become more agile and adaptable in the face of potential difficulties.

Accessing favourable terms

Opting for third-party funders over more traditional sources of finance, like banking institutions, could provide your fleet with the flexibility required to remain agile in the current market. A wider range of funding arrangements are likely to be available, with a greater range of options for firms in different financial circumstances.

Anglo Scottish notes how haulage businesses can combine different lending facilities, such as asset finance, with more traditional commercial loans to diversify risk. Longer lending terms or lower interest rates may also be available, depending on a business’ situation.

“Given that the UK’s economic outlook is still uncertain,” says Johnson, “it’s unsurprising that firms are reluctant to invest in their fleets. Flexible lending terms for asset finance agreements can help alleviate some of the pressure on these firms, with contract hire agreements increasingly used by haulage fleet bosses to reduce the risk to their fleets.”

Transitioning to electric

A report from the Green Finance Institute in November 2023, found that we must take “urgent action” to electrify 500,000 HGVs across the country in order to meet the UK’s net zero goals. With HGVs constituting 20% of the UK’s transport emissions, haulage firms have a key role to play in decarbonising the UK’s roads.

Dedicated green finance arrangements, in the form of green loans and green bonds, can be a valuable facility for fleets looking to become more sustainable going forward. Under these agreements, your company can access finance agreements that are specially tailored for

“There may be additional benefits for haulage companies operating within the UK and the EU,” notes Anglo Scottish’s Renewables Specialist Charlotte Enright. Under the EU’s Carbon Border Adjustment Mechanism, EU countries must submit information on any carbon emissions created through the production and importation of certain goods.

“Making the switch to an electric fleet would limit the emissions attached to a given export, making it more lucrative for EU importers,” comments Johnson. “It’s not just green loans that UK haulage companies stand to benefit from. Using these facilities in combination is a great way to insulate your company against the challenges facing the haulage sector.”

Photo by Roger Bradshaw on Unsplash

Fleet specialist Anglo Scottish Asset Finance completes management buyout

 960 640 Stuart O'Brien
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Durham-based Anglo Scottish Asset Finance has confirmed the completion of a management buyout (MBO) to take back control of the business.

The investment is backed by a consortium of UK-based funders, the company’s original founding directors, wider management team, existing employees, and contractual agents.

Founded in 2007, Anglo Scottish quickly established its name in the finance brokerage sector. In 2015, the company was acquired by McMillan Shakespeare Group. The MBO follows the publicly listed Australian company’s move to seek an appropriate acquirer for its UK operations on the back of a strategic view to exit the UK and focus on its core capabilities down under.

The MBO will result in an expansion of the business’s presence in the UK as Anglo Scottish aims to develop a new funding option for customers while establishing new partnerships, joint ventures and strengthening relationships with current funding partners. It plans to leverage new technologies and expand its capacity to secure new clients and support partner relationships in the industry. The funding raised will support these initiatives as the Anglo Scottish brand continues to develop.

Anglo Scottish supports fleets across the country, having helped businesses across the country access affordable finance for commercial vehicles. The company has also partnered with local councils to deliver the financial assistance scheme for fleets affected by the introduction of Clean Air Zones. This has helped more than 400 businesses to replace non-compliant vehicles.

During 2023, the company added three new divisions – Renewables, Agriculture and Ground Transport – to its existing structure, which already covers Vehicle Finance, Asset Finance, Commercial Finance and more.

The company has increased its headcount to 86, with newly employed staff based in Scotland, Merseyside, Yorkshire, London, and Devon, and has grown its network of tied agents to 68.

Additionally, the company brokered over 12,900 deals in the financial year 2022/23, reaching a substantial milestone with over £519 million of brokered business within the year. During the MBO process, the company offered investment opportunities to all employed staff and agents, allowing all to benefit from the company’s success.

Managing Director David Foster expressed his excitement for the future, stating that the MBO marks a “landmark moment” for Anglo Scottish and its leadership team. He commented: “With this continuing growth, we see a huge opportunity to develop a new way of doing business, offering a broker/funder hybrid service to our customers and bringing us closer to our industry partners.

“While the MBO gives us the financial strength to broaden our market and offering, we will maintain the identity and independent approach that our existing customers and partners have come to expect.

Commenting further David added: “We look forward to a promising future, anticipating continued growth and success for our management team, employees, and the businesses and individuals we serve.”

Photo by Scott Graham on Unsplash