Home Business NewsBusinessAutomotive News Family-owned van hire business gears up for growth with £3.5 million funding from HSBC UK

Family-owned van hire business gears up for growth with £3.5 million funding from HSBC UK

by LLB Finance Reporter
16th Aug 23 7:09 am

A London-based family-owned van hire business has grown its fleet following support from HSBC UK.

Pace Van Hire is set for major growth following a £3.5million asset finance facility from HSBC UK. The company has used the funding to equip its new Eltham site with vans for hire and expand its existing fleets across its New Cross and Croydon branches, resulting in an expected increase in turnover by a third over the next year.

Supply chain issues due to the pandemic, the war in Ukraine, and a shortage of semiconductors have all led to a global shortage of vans, so businesses need to act fast to purchase vans when they become available. This deal allows Pace Van Hire to meet this demand by being able to acquire new vehicles swiftly, giving the business an advantage over its competitors.

The company’s fleet currently consists of 220 vehicles, an increase of 40 vans since the launch of the Eltham site in February as a result of the funding. By next year, the owners plan to increase this to 300.

The expansion of Pace Van Hire’s fleet has also led to new job opportunities with four new full-time positions and one part-time already filled.

Louis Verrico, Owner of Pace Van Hire, said: “The shortage of vans in the UK has meant purchasing them as soon as they become available is vital. The HSBC UK asset finance facility provides us a pot of money to draw from when we need it, so we can move swiftly when an opportunity to increase our fleet arises.

We primarily cater to private individuals who are moving house, taking a trip to the tip or driving kids up to university. We rely on the loyalty of our local customers, so we need to be able to offer the up-to-date modern vehicles, and with HSBC UK’s help we have been able to purchase the best vans on the market.”

Jason Mowe, Area Director for South & East London Business Banking at HSBC UK, added:We’ve supported Pace Van Hire for the past 15 years, and have seen how the owners have successfully adapted their business model to meet changing customer demands. This has allowed the company to grow and expand, even throughout lockdown and the current cost-of-living crisis.

“Looking forward, Pace Van Hire is eager to become a bigger player in the van hire industry with ambitious plans to open more branches around London. Backed by HSBC UK, the company aims to solidify its reputation as a top choice for commercial van rental and local van hire in South London & Croydon.”

Pace Van Hire is a third-generation family business which originally launched in the 1950s as a car dealership. The company started offering van hire services in 2008 from its site in New Cross. A decade later, Pace Van Hire launched a new site in Croydon, followed by its Eltham site launch in 2023.

The company director, Louis Verrico, is a member of the Leaders Council and a Parliamentary Review Best Practice Representative, while the company is part of the BVRLA, the UK trade body for companies engaged in vehicle rental, leasing, and fleet management.

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