SME Van Driving Plans Curtailed by Funding Issues

Small and medium-sized businesses (SMEs) utilising van deliveries to meet customer demand contribute approximately £43.8 billion to the British economy annually. Yet for many of these businesses, their van driving plans are being curtailed by funding issues. Business owners are still finding it difficult to secure the lending needed to increase van fleets.

Fleet News says that nearly 58% of SMEs are turned down by high street banks when applying for loans to purchase new vans. The Bank of England maintains that British lenders have to be more cautious with small businesses because their loans are more risky. Without enough capital to guard against possible default, smaller companies cannot seem to convince banks that they are a good risk.

That is unfortunate when you consider how much van drivers add to the economy. Not only do they provide a valuable service for the delivery of parcels and light consumer goods, they also contribute significantly through fuel duties and taxes. Preventing fleets from expanding is certainly not helping business owners and it is dampening economic output in general, as well.

One solution for business owners is to go outside traditional options in favour of financing from manufacturers. Mercedes-Benz Financial Services provides a good example. Through their financing arm, Mercedes-Benz approves customers at a rate of about 85%. That company is happy to do so because financing benefits both itself and its customers.

Van Driving As a Career

The army of vans using UK roads is undeniable. Companies will continue to find a way to finance their purchases even if they have to go outside the normal channels. That is good for them, the economy, and anyone who wants to work as a van driver. And make no mistake; the work is available. Right now Britain is undergoing a shortage of professionally trained drivers for vans and other commercial vehicles.

Our van driving courses can prepare you to get your licence so you can work as a commercial driver. We utilise a concentrated and fast-paced approach that enables our students to learn just what they need to pass their tests the first time. Not only do they learn and retain, they also go on to become safe and successful professional drivers.

If you would like to start training with the HGV Training Centre, you need only contact us at your leisure. New classes are forming all the time at more than 45 locations around the UK. We can get you started in the next class in your local area. To begin commercial driver training you need to already possess a valid car licence. From there, the process is straightforward:

1. take and pass a routine medical exam
2. apply for your provisional entitlement
3. study for, take, and pass the theory test
4. undergo practical skills training
5. take and pass the final practical skills test.

Once you are licenced, you can use our jobs database to look for work. From start to finish, the HGV Training Centre makes it easy.

Sources:

1. Fleet News – https://www.commercialfleet.org/news/2014/8/1/bank-borrowing-blow-to-britain-s-van-drivers/53156/