South Gloucestershire Bus and Coach expands fleet
- South Gloucestershire Bus and Coach (SGBC) secures £1.7m funding to purchase seven new coaches for profitable new route
- Hire purchase finance solution ensures SGBC continues to have use of the vehicles even after the contract finishes
- Lombard secures continuation of long term relationship with customer
SGBC's owner Roger Durbin is a veteran of the transport business and has been operating in Bristol and South Gloucestershire for many decades. Today his business, SGBC, focuses on national and regional coach operations, including many National Express routes, and the company also retains some local school runs.
In 2010, SGBC was appointed to run the National Express', Bath to London route via Swindon and Heathrow, and as a result needed to acquire more coach stock. Having had a working relationship with NatWest and Lombard for nearly 20 years, SGBC approached the business as part of a tender process to obtain a hire purchase agreement for £1.7m to purchase seven new coaches.
Lombard has worked with Durbin for nearly two decades and consequently has an in-depth knowledge of how the business operates and is familiar with its solid track record for making payments on time. While the deal was complex because of the level of borrowing required, Lombard was determined to find a way forward. Regular contact with the business throughout the negotiations, particularly with the accountant, resulted in the quick delivery of the funding. This ensured payment could be made promptly for the new coaches and in so doing, secure the customer's contract for the profitable new route.
Lombard's Senior Relationship Manager, Shane Mansfield says, "Lombard has an excellent relationship with SGBC and we had a good team that worked hard to find a solution. Lombard always tries to look at the bigger picture and to consider each customer’s specific situation, rather than operate a ‘tick-box’ culture. In this case, having an understanding of the business’s cash flow played a key role in securing the funding, along with the business’s reputation and its future growth prospects."
Mark Wood, SGBC's Finance Director supports this. He says, "We have worked with Lombard and NatWest for many years and they know our business. As far as the financing of this deal was concerned, it was very relaxed for us! The most stressful part was buying the vehicles but the funding was ready and available when we needed it."
Although an operating lease was discussed as an option, SGBC was happy with hire purchase. It wanted to keep using the vehicles at the end of the five-year contract. As SGBC continues to grow and expands its routes, Lombard believes that it will maintain what is a strong working relationship with the company.
For more information about how Lombard could help your business grow, please call 0800 028 7164. Type Talk 18001 0800 028 7164.
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