Business finance for removals & man-and-van firms

Why removals cash flow is strained

A removals or man-and-van firm pays its biggest costs as it works: fuel, crew wages, vehicle hire or finance, insurance and packing materials all go out across the job. Domestic customers often pay on the day, which helps, but commercial and office moves — the higher-value work — usually run on 30-day terms or longer. So the firm funds the move now and waits weeks for the invoice to clear. Vehicles are the other strain: a van off the road for repair or an MOT is lost earning capacity, and adding capacity means a large outlay before the extra jobs arrive.

Where the cash gets stuck

The squeeze sits in fuel and wages paid up front against commercial invoices settled in arrears, in vehicle costs that recur whether or not a van is booked, and in the sharp summer peak when most house moves happen. Gear up for that peak — extra crew, an extra vehicle, more materials — and the outlay lands months before the busy season's revenue does. A single late-paying commercial client can leave a profitable firm short of diesel money.

What removals firms use funding for

Typical uses include adding a vehicle to the fleet to take on more work, bridging the wait on commercial-account invoices, funding fuel, crew and materials through the summer peak, and covering an urgent repair or MOT so a van is not stuck off the road. The point is to fund work that is won and will be paid, or capacity that earns, rather than speculative spend. Size the gap on staged or account work with the working capital calculator.

What to weigh before borrowing

Tie repayments to when your commercial invoices actually clear, and watch concentration risk if one account dominates your book. Weigh whether a vehicle is better funded by a short facility or by asset finance, and ask for the total repayable, not just a rate. Time borrowing so repayments fall in the busy summer months. Read how to calculate affordability. This is general information, not advice on your accounts.

How short-term company finance fits — no personal guarantee

Credicorp lends to the limited company, not to you personally — no personal guarantee, so your home is not pledged against the facility. As an exempt business lender it provides working capital to UK companies rather than regulated consumer credit. A business loan or the flexible Credicorp Flex line gives a removals firm a controlled pot to cover fuel and crew or add a vehicle, repaid as jobs and account invoices come in. You can apply online.