Assets refinanced
Wheelchair accessible vehicle fleet (mixed owned and HP)
Sector
Taxi and private hire
Location
Dundee
Outcome
Reduced monthly payments, cash injection, two new vehicles funded
Timescale
Funds received within days of paperwork completion

The situation

The operator ran a small fleet of wheelchair accessible vehicles in Dundee, a mix of vehicles he owned outright and others under existing hire purchase agreements. A combination of rising operating costs and a period during which he was unable to drive himself meant he had become reliant on employed drivers, and the monthly finance payments had become difficult to manage.

At the same time he held two additional taxi licences that were not being used. He wanted to put those licences to work with new vehicles but had no clear route to funding the purchase while his cashflow was under pressure.

Three things needed solving at the same time: reduce the monthly cost of his existing finance, generate a cash injection to cover his personal expenses, and find a way to fund fleet expansion.

The asset inspection

Martin visited the operator at his site in Dundee to carry out the asset inspection. Some of the vehicles were at the yard. Others were out working. Rather than asking the operator to bring them all in, which would have disrupted the business and cost the drivers earnings, Martin drove around the city to photograph the remaining vehicles between jobs.

That approach also gave Martin something useful to show lenders. The vehicles were active, on the road and earning. A yard full of parked taxis can look like a business in difficulty. Catching them working tells a different story, and Martin made sure that story was front and centre in the proposal.

The solution

Martin structured a consolidation refinance across the existing hire purchase agreements, including one vehicle that was fully paid off and holding unrealised equity. By combining the balances and extending the repayment term, the monthly outgoings on the existing fleet were reduced. The equity released provided the cash injection the operator needed.

Separately, Martin arranged a new hire purchase agreement for two additional vehicles to put the unused licences to work. Those new vehicles would begin generating income immediately.

The outcome

No short-term debt. No legal process causing delays. No complicated applications. The business came out of the transaction with lower monthly outgoings, cash in the bank, and two new vehicles on the road generating additional income.

The capital was there all along, sitting in the fleet. What was needed was someone who knew how to unlock it, structure the solution, and present it to the right lender.

Frequently asked questions

These answers are general information only, based on common scenarios. Your own situation will differ — speak to Martin directly for advice that fits your business.

Can a taxi or private hire fleet be used for asset refinance?

Yes. Vehicles used for private hire and taxi work — including wheelchair accessible vehicles — can be refinanced, provided the business holds sufficient equity in them. A broker will assess the fleet's current value and any outstanding finance before recommending a structure.

Can refinance be used to settle existing HP agreements on vehicles?

Yes. A refinance facility can be structured to settle one or more existing hire purchase agreements and replace them with a single facility, often at a lower monthly cost. This simplifies the business's finance obligations and can free up cashflow at the same time.

Is a wheelchair accessible vehicle treated differently by lenders?

Specialist vehicles such as WAVs are handled by a smaller number of lenders than standard commercial vehicles. An experienced broker will know which lenders are comfortable with these assets and can approach the right parties directly, rather than testing the market through repeated applications.

How quickly can vehicle refinance be arranged?

Vehicle refinance can often be arranged within the week once an application is submitted and the relevant paperwork is in order. The broker will manage the process, including settlement of any existing agreements on the vehicles, so you can focus on running the business.

Can refinance help if I have multiple agreements with different lenders?

Yes. Consolidating several agreements into a single facility is a common use of refinance. It simplifies administration, reduces the number of monthly payments to track, and in many cases reduces the total monthly cost — even where the overall finance amount increases slightly due to settlement figures.

Does the business need to own the vehicles outright to refinance them?

Not necessarily. If the vehicles have existing finance, that can often be settled as part of the new arrangement. What matters is whether there is sufficient equity in the fleet — the difference between the current market value and any outstanding balances — to make a refinance viable.
Martin Mackenzie
About the author
Martin Mackenzie
Director, Mackenzie Commercial Finance. Asset finance specialist with 20+ years in commercial banking and asset finance, including experience with Bank of Scotland and Close Brothers Asset Finance. Based in Inverness, working with businesses across Scotland.