Central Courier Solutions, a transport logistics company based in Solihull, West Midlands, has agreed a £1 million invoice finance facility with Aldermore, the specialist lender and savings bank.
The business was set up by David Blackwell over a year ago and now employs around 40 people. Whilst Central Courier Solutions predominantly operates in the West Midlands and Northampton areas, it also serves clients from across the UK.
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.
This means that 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 the company to serve even more customers and grow its revenue.
Additionally, long payment terms are common in the sector, and the funding will also be used to allow Central Courier Solutions to continue operating and taking on new business even if they are waiting for a payment from one of their existing contracts.
David Blackwell, Founder and CEO at Central Courier Solutions, 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.
“We were speaking to a number of different lenders but chose Aldermore because we trusted them to deliver on providing the funding we need. They demonstrated a keen understanding of our business model and their offer really stood out to us.”
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.”
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