Vehicle Hire Firm Funding Boost
Midlands-based Hexagon Leasing launches new sales division following £600,000 injection
Vehicle hire firm Hexagon Leasing is poised to roll out a new vehicle sales division following a £600,000 purchase funding agreement from Bibby Financial Services.
Hexagon Leasing operates an 800-strong fleet of HGVs, vans and cars, offering vehicles on a contract hire or rental basis to businesses across the UK. Using a £600,000 purchase funding facility - structured by the Bibby Financial Services West Midlands – the business is set to launch a new division offering vehicle sales.
Vehicles will be purchased by Derby-based Hexagon Leasing, refurbished and sold on to existing customers, dealerships and the private market. The funding facility is unique in that BFS has agreed to advance an amount for the business to purchase a fleet of vehicles, without stipulating an invoice finance facility to cover the sale of vehicles to Hexagon’s customers.
Ben Smith, Head of Bibby Financial Services’ West Midlands Business Centre says the deal is unique and demonstrates his team’s agility and innovation. Ben said: “Our team has worked closely with the team at Hexagon to understand their ambitions and appetite for growth. It would be difficult to imagine another provider who could offer similar levels of service and flexibility.
“This facility is solely based on the balance sheet of the business and our confidence in the team, and it demonstrates our expertise when it comes to managing risk effectively to support business growth.”
Throughout the rest of Q1, Hexagon Leasing plans to refurbish and sell in excess of 140 vehicles, while maintaining its contract hire stock levels. The new venture is projected to increase the company’s annual profits by more than 30 per cent to £750,000 in 2015.
Ben added: “While Bibby Financial Services is traditionally known as an invoice finance provider, we structure a range of transactions for stock purchase, mergers and acquisitions, turnaround and refinancing, so we can help businesses, whatever their requirements.”
Featuring on BBC Midlands Today, Bibby Financial Services announced the opening of its West Midlands Business Centre in October, signifying its plans to expand in the region.
“The West Midlands Business Centre provides dedicated support to businesses and introducers alike, helping them to secure the funding that they need and allowing them to grow”, Ben added.