TAEFL agreed to fund the purchase of aids for leasing
Although mobility difficulties make it tougher to get around, transport has been getting more accessible for disabled and elderly people over the past few years. One of the many options available to those who need a little extra support is a mobility scooter.
A mobility scooter can give the confidence and independence to continue visiting family and friends, going shopping and travelling on holiday.
A mobility specialist based in North Yorkshire is a major outlet for mobility equipment across the North and North West of England. For the past 12 years it has supplied the disabled and elderly with mobility aids. The company provides its clients with an end-to-end package with servicing and repairs of their scooters.
The company draws equipment from suppliers around the UK. These suppliers need payment for the scooters upfront, however; a situation which puts the mobility vendor’s cash flow under pressure. As a result, the organisation’s sales have declined in the last 3 months, despite there being a backlog of orders which could not be financed.
Potential for TAEFL/UK EXIM involvement recogised
Fortunately, a contact from ArchOver, UK EXIM’s largest funder spotted the potential help that TAEFL/UK EXIM could provide and pointed the mobility specialist in that direction.
The company came to us with £100,000 worth of orders from about some 60 different clients. It was able to provide UK EXIM over a list of all the customers who had applied for and been ‘matched’ with a scooter. That order book represented a sales value of £160k, so there was a good profit margin available on the deal.
For UK EXIM, the proposition was straightforward. As the vendor has never required any funding other than a traditional bank overdraft, UK EXIM was able to take a debenture over the company. It also took credit insurance on the buyer.
Now, UK EXIM can pay the company’s suppliers and bring in the stock from around the UK. The scooters are then assembled before the client goes through the Motability assessment test ride checklist and enters into the lease. The buyer will then pay UK EXIM directly. This cycle can be repeated every time a mobility scooter is purchased.