The question arises – are van drivers getting a tougher deal from the bank?
A recent study by Mercedes-Benz has revealed some interesting statistics on the raw deal that ‘White Van Drivers’ are still receiving from banks.
In Great Britain van drivers contribute over a huge £43.8 BILLION in to the UK’s economy – this is according to the calculations made by Mercedes-Benz, but nearly 60% of van drivers that apply for funding from high street banks see their applications turned down!
Each van in the UK costs more than £5,600 a year in fuel duty and tax alone, which goes into the UK’s economy budget, which is more than a fifth of the average Van Drivers annual income, this doesn’t include the revenue from income tax and national insurance. This aside a high amount of SMEs who need van/van drivers still find themselves getting turned away from the high street bank (according to Mercedes-Benz Van study).
Two thirds of SMEs van drivers and owners are expecting to see their business grown over the next year, which will have a significant benefit towards the UK economy, this aside over half will have their funding applications turned down by the lenders. This compares to a 90% acceptance pre the recession.
In the Mercedes-Benz Vans report it shows a massive increase in the amount of finance that has been requested and approved to the customers.
There is strong economic recovery in the SME sector; research shows SMEs repaid £5.2billion of existing loans in Q1 of 2014. Despite these encouraging financial figures the Bank of England believes lending to SMEs is more risky.
Steve Bridge – Managing Director from Mercedes-Benz Vans, said:
“It is staggering that while business van drivers contribute almost £44 billion to the UK economy, and make up of around 10% of the country’s total employment, their significant contribution to the economy is almost certainly forgotten when it comes to Britain’s banks.
In order to ensure these business grow, high street lenders need to wise up and give bank to such an important part of the economy.
We see great potential in the SME market and want to work with this significant business community to best support them and their vehicle requirements, however we can, be it through finance offerings, advice on running their vehicle fleet, or after sales care.”
If you are looking for Leasing and Hire Purchase Deals visit our sister company Zebra Vehicle Solutions. We can help you purchase a vehicle and easily manage your finances. Our sales team are only a phone call away so call 0845 06 06 102 for more information.