Credit Crunch: Funding and support

As a result of bank mergers and the decision of a number of key funders to either pull out of the market or threaten to do so, many BVRLA members are finding it increasingly difficult to source adequate financing for their business.

Even where credit lines are still in place, funders are adopting extremely risk-averse policies where residual value funding is involved. A number of funders are putting special conditions in place before they will consider giving credit lines and, in some cases, are giving better rates to consumer finance than the corporate variety.

The BVRLA is working hard to try and alleviate this situation and has met with both Government officials and senior bank executives in a bid to try and improve the flow of funding through to the vehicle rental and leasing sector. So far the association has met with some limited success and has been able to help some members secure extra credit lines.

If members have a particular problem they can get in touch with the BVRLA's legal services team either by email or by calling us on 01494 434747.

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