UK Banks Lending Again as SME Receives £600k Credit Boost
Climatecars has secured additional bank funding of over £600,000. The company said that in an era of austerity and ‘bank bashing’ it demonstrated a positive example of lenders supporting a successful UK small and medium-sized enterprise (SME). Climatecars has been trading for over five years and has been profitable for the past three. It is is an environmentally-friendly taxi service covering Greater London with a fleet of over 100 hybrid and electric cars.
The funding lines negotiated by Climatecars are a combination of asset finance and working capital. The first line from Climatecars’ bank, Clydesdale, is an extension of their asset finance line to £400,000 which allows Climatecars to significantly expand their fleet of hybrid Toyota Prius Cars. In addition to asset finance, Clydesdale have provided Climatecars with a working capital line of £200,000, to help with any cash flow issues as they continue to grow their base of business account customers, who are generally on 30-day payment terms.
Toyota Financial Services have also increased its asset finance credit lines for Climatecars by another £200,000 to over £500,000. The credit provided by the bank and asset finance companies is enough to enable Climatecars to continue to grow significantly and take on more clients. All of Climatecars lenders have lent on the basis of a continuing track record of profitability.
Johnny Rowe, partner at Clydesdale Bank’s London West End business banking centre, said the bank was delighted to lend its continued support to Climate Cars by increasing its credit line. “Climate Cars has a particularly robust business plan and financial reporting system,” said Rowe. “That means Nicko [Williamson, managing director of ClimateCars] has an enviable knowledge of just how his business is performing, allowing him to make decisions quickly and decisively. For us, that knowledge and control breeds confidence in him and reassures us that our investment in the company is secure and based on the most up to date business information possible.”