Transport and haulage company insolvency
Transport, haulage and logistics companies run on thin margins and heavy fixed costs, which makes them sensitive to shocks such as a lost contract, a fuel spike or a major customer paying late. Because so much of the fleet is financed, often with personal guarantees, a director's personal exposure can be significant. The usual routes apply (Time to Pay, a CVA, administration or liquidation), but the asset finance on the fleet makes specialist advice valuable.
Fuel, finance and guarantees
Fuel is a large and volatile cost, vehicles are usually bought on finance or lease with fixed monthly payments, and driver shortages have pushed up wages. VAT and vehicle finance are often among the first arrears, and much of the fleet is financed with personal guarantees.
Dealing with financed vehicles
Financed and leased vehicles are dealt with as part of the insolvency, and any guarantees can often be negotiated. A Licensed Insolvency Practitioner can deal with the vehicles and guarantees as one plan rather than you facing each lender separately. Use our guarantee exposure checker to total your position.
Common questions
What happens to financed vehicles if my haulage company fails?
Financed or leased vehicles you do not own are generally returned to or dealt with by the finance provider. Where you gave a personal guarantee, the lender may pursue you for any shortfall, though that is often negotiable.
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