Ultimate Finance provides £200,000 funding for haulage business acquisition

Ultimate Finance has provided a £200,000 asset finance facility to support the acquisition of 17 vehicles and trailers by an established UK haulage and transport business, enabling the company to expand its operations and diversify its customer base.

The funding, structured as a Hire Purchase agreement over 60 months, enabled the unnamed business to acquire a profitable transport operation comprising 17 tractor units and trailers.

The acquisition presented an opportunity to broaden the company’s customer base, secure additional contracts and reduce its reliance on a single major customer, which had previously exposed the business to commercial risks.

However, the transaction required a rapid funding decision to ensure the business could take advantage of the acquisition opportunity at an attractive price.

The deal was introduced to Ultimate Finance by William Blowfield of Universal Asset Finance, who worked with John Hallett, Regional Director at Ultimate Finance, to arrange the funding.

Following an assessment of the commercial rationale behind the acquisition, Ultimate Finance agreed to fund all 17 assets, with repayments spread over five years.

The structure was designed to align the financing with the company’s longer-term use of the vehicles and trailers, while enabling it to complete the acquisition and begin integrating the additional contracts into its existing operations.

John Hallett, Regional Director at Ultimate Finance, said: “The important point was not simply the number of vehicles. The acquisition gave the business a practical route to diversify its income.

“We focused on the commercial rationale, moved quickly and funded the assets needed to turn that opportunity into a more resilient business.”

With the funding secured, the haulage company has been able to acquire the vehicles and trailers and begin incorporating the acquired operation’s contracts into its established business.

The transaction is expected to support growth through a broader customer base and operational synergies between the two businesses, while reducing customer concentration risk.

William Blowfield of Universal Asset Finance highlighted the importance of responsive lending and communication in completing the deal.

“Ultimate Finance delivered exactly what they promised: a quick decision, great communication throughout and a clear appetite to support the client’s growth plans,” he said.

“That gave us confidence that Ultimate Finance has both the appetite and capability to support more businesses with Asset Finance.”