- Sector: Transport
- Turnover: £1.2 million
- Funding: £160,000
Fuelling Britain’s businesses: Leeds based transport business set up for success after working capital injection
About the company
JDC Haulage Ltd was founded by Daniel Chapman in July 2019, after completing his Transport Managers degree. Based in Leeds, the specialist road haulage company supplies a fleet of modern trucks to transport materials such as steel and aggregate stone across the UK in sectors including construction, manufacturing, and the FMCG industry.
Managing Director, Daniel Chapman, started working in the haulage industry at age 17 working for his dad’s company. The experience and relationships built during this time, allowed him to establish his own business, which is now in its third year of trading.
JDC Haulage employs 10 members of staff and currently owns a fleet of seven specialist trucks.
“Although I launched JDC Haulage just before the pandemic hit, the business has proven to be resilient and I feel lucky that I have been able to offer my employees stability during such an uncertain time. That being said, I’ve worked in the haulage industry for over 15 years, and the current landscape we are now trying to navigate with rising costs, is genuinely worse than it was during the 2008 recession.”
Navigating the cost of doing business
In addition to navigating challenges associated with the COVID-19 pandemic, the rising cost of fuel has become a relentless issue for JDC Haulage. As fuel prices continue to fluctuate, the business’s profit margins have been halved from 15% to 7%, making decisions around growth and investment difficult.
The business uses roughly 7,000 litres of fuel per week, and the additional £1,800 cost of providing this has a direct impact on the business’s profitability. As such, the 5p reduction in fuel prices announced in Rishi Sunak’s recent Spring Statement, doesn’t go far enough in helping businesses like Daniel’s.
“If the government had announced a separate rate specifically for businesses like mine - for example a 25% fuel price cut - that would have done a lot more to help businesses stay afloat. As it stands, a 5p reduction is almost redundant.”
Such costs are directly impacting the business’s cash flow; stunting JDC Haulage’s ability to hire or grow its customer base, and forcing Daniel to reconsider whether to continue with his plans of increasing his vehicle fleet from seven to ten trucks. To overcome this challenge, Daniel began researching external finance options that would both support the day-to-day running of his business, as well as his growth ambitions.
Bibby Financial Services has proven to be a crucial support for JDC Haulage
The business first approached BFS in March 2021 for funding that released working capital to support the company’s growth ambitions. The initial Invoice Finance facility allowed the company to increase its fleet size from one to seven trucks.
Daniel initially contacted a high street bank, but found the service it offered overly complex and difficult to understand. He thought BFS offered the most simple and responsive solution of all the options on the market - and shortly after his first call with the team, the team at BFS provided an Invoice Finance facility of £75,000, which has now increased to £160,000.
“The team at BFS were quick to respond and were able to find a solution that both helps us to overcome challenges associated with rising costs, but that also enables our business to grow in the future.”
Eighteen months on, and BFS provides ongoing support through its Factoring service to ensure the business can navigate today’s volatile landscape. It means that BFS is on hand to unlock finance options that offer a lifeline through the good and bad times.
For example, when fuel prices first started increasing, BFS proactively contacted Daniel to increase the business’s funding availability to ensure it could operate in an increasingly difficult environment. Within four hours, Daniel had received confirmation of the additional funding, and was able to unlock additional cash flow to help with fuel price increases.
This collaborative, customer-first partnership, combined with BFS’s deep understanding of the business environment, is why Daniel plans to stay working with BFS for as long as he is in business.
“Bibby Financial Services has proven to be the perfect financing partner for me, largely because its offering goes so much further than just providing funding support. The help and support I regularly receive from my relationship management team at BFS is genuinely a big factor as to why my business is still operating today. The team at BFS work so closely with us, we’ve become more like friends rather than supplier and customer!”
Louise Ross, Relationship Manager, Bibby Financial Services: “Supporting businesses like JDC Haulage sits at the heart of what we do here at BFS. Daniel has built up a strong reputation with his customers, and we are proud that our funding fuels his ambition for his business, clients, and any future growth plans.”