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Transport SMEs Boost Investment and Recruitment

Posted on by David Priestman

Transport SMEs are ready to ramp-up investment, with fresh spending on assets and expanded workforces, Paragon Bank research has found.

Published today in ‘An SME Led Recovery’, a survey of transport SMEs from across the UK identified growing expectations for cashflow to improve – leading to increased investment by businesses in their operations. The first in a series of quarterly research reports that will track the sector, An SME Led Recovery details the performance, plans and ambitions of SMEs, highlighting the central role they play in the UK economy.

Cashflow and turnover set to improve

Conducted for Paragon by Opinium, the research found that 45% of transport SMEs predict that their cashflow will improve substantially over the next three months, rising to 49% over the next six months and 51% over the next year. Only 23% of SMEs had seen their cashflow improve over the previous three months.

Similarly, turnover is also set to improve – 44% of businesses reported rising turnover levels during the first quarter of the year, with 47% expecting turnover to improve further during the second quarter, compared to 27% that forecast a fall.

Investment on the increase

Just under a third of transport SMEs (29%) will use the increased cashflow and financing to increase investment in their businesses, with 55% planning to maintain current investment levels and only 13% expected to reduce spending. The renewed investment will also see the number of transport SMEs investing in electric vehicles rise from 18% in the last six months to 53% across the next six – the same proportion as those set in invest in traditional fuel vehicles.

• Recruitment: 27% > 51%
• HGVs: 25% > 53%
• LCVs 20% > 53%
• Electric Vehicles: 18% > 53%
• Equipment: 13% > 55%
• Machinery: 13% > 47%

SMEs are also planning to boost their operations by increasing their work force, with 29% of businesses planning to recruit over the next six months and 20% planning on reductions.

Confidence strong in business prospects

Transport SMEs expressed confidence in their prospects for their own businesses and the sector in which they operate but were less confident about the macro environment. Over half said they were confident in their own business (55%) and their sector (58%) in the next three months, compared to 15% and 13% respectively that were not confident. Confidence was less strong in the UK economy, with only 39% of transport SMEs surveyed expressing confidence.

SMEs seek finance

The research also found that 44% of transport SMEs sought additional financing over the last three months, with 52% of those businesses seeking over £100,000. While 5% of this group received no additional financing, 17% received some of the finance they were seeking, and the remaining 22% received all the financing they sought.

Writing in ‘An SME Led Recovery’ on the research findings Dale Trenam, Paragon’s Head of Transport, said: “When the UK economy returns to growth, it will be thanks to the dedication and skill of SMEs – and transport SMEs are set to play a vital role in this process.

“Published today in our report, An SME Led Recovery, newly commissioned data finds that transport SMEs are confident, investing and looking to the future – creating the conditions necessary for the economy to bounce back. With the positive news that transport SMEs are planning to invest and grow their operations, it is vital that they can access the funding they need to achieve their goals and fulfil their role in driving forward economic recovery. As SME lending specialists, the Paragon team works with businesses daily – providing us with a first-hand understanding of not only the sector, but also the requirements of individual businesses. By doing so we can develop bespoke deals to ensure that transport SMEs can acquire the assets they need in a way that supports their growth plans.”

Paragon Bank PLC a subsidiary of the Paragon Banking Group PLC which is a FTSE 250 company based in Solihull in the West Midlands. Established in 1985, Paragon Banking Group PLC has over £14 billion of assets under management, helping more than 340,000 customers to achieve their ambitions.

$600m submitted on DP World Trade Finance platform

Posted on by David Priestman

Efforts to close the $1.7tn annual global trade finance gap are gaining traction, especially in the small-to-medium-enterprise (SME) sector, with DP World announcing that its platform has received requests for more than $600m in credit limits.

DP World Trade Finance offers businesses of every size a quick and simple route to secure the capital they need to trade in global markets. The aim is to bridge the $1.7tn of trade finance gap that exists, stemming from struggles that many business face in securing the upfront funds required to move cargo.

Since its launch in July 2021, DP World Trade Finance has generated over $600m in credit limit submissions by facilitating a streamlined connection between SMEs and financial institutions on its trade finance platform. The platform has registered over 56,000 global clients from more than 50 countries around the world to provide them with affordable access to trade finance.

The latest financial institution to join the platform is India Factoring and Finance Solutions Pvt. Ltd, a leading, independent provider of specialised trade finance products in India. The company will now be able to use the DP World Trade Finance platform to lend with confidence and help companies access the capital they need to trade efficiently.

Sinan Ozcan, Senior Executive Officer of DP World Financial Services, outlined the importance of Trade Finance in DP World’s efforts to enable world trade: “DP World’s extensive outreach to businesses across the globe, visibility on trade data and control over cargo help financiers connect with businesses, identify risks, build confidence and provide credit, while businesses gain access to affordable and innovative financing options to grow their business.

“So far, we’ve onboarded 20 financial institutions onto the platform, covering 80 countries total, and the registration process for new clients is less than five minutes. By enabling more business through finance, we can support growth and generate greater value for all of our partners and customers.”

Ravi Valecha, CEO of India Factoring and Finance Solutions Pvt. Ltd, said: “As a leader in worldwide smart end-to-end supply chain logistics, DP World handles over 10% of global container traffic and has terminals in countries across the world. Being part of trade finance is a natural extension for them and India Factoring and Finance Solutions Pvt. Ltd. is glad to be associated to be part of their cross border trade finance solutions – a natural extension as a leader in India’s cross border factoring space.”

Many SMEs have their finance applications rejected every year when they are unable to provide the credit history along with additional trade data that financiers routinely require for credit approvals. These are businesses who buy, sell, import and export goods around the world, meaning a vast amount of trade is being lost. Fundamentally, the level of access to trade finance is critical not only to the survival and growth of exporters, importers and logistics companies, but to the growth of economies as a whole.

£24bn of goods held up by SC issues

Posted on by Keith McKinley

A report from Barclays Corporate Banking reveals that goods with a total value of £23.6bn are awaiting completion in UK manufacturers’ warehouses because of supply chain delays.

The study – ‘Chain reaction’ – focuses on manufacturing businesses with over 10 employees and looks at the impact of supply chain issues. Barclays’ research shows that over seven in 10 (72%) businesses are currently holding items in their warehouses awaiting completion because raw materials, ingredients or component parts have not yet been delivered from suppliers. On average, this ‘unfinished business’ is worth over £1m to each company impacted.

Products in the steel and metals sector are most severely affected, with £9bn worth of goods incomplete – equivalent to almost a fifth (19%) of the sub-sector’s annual turnover. The most affected consumer goods sector is food and drink, with delays in sourcing ingredients causing a £3bn backlog. A high value of plastic products (£2.6bn) and electronics (£2bn) are also awaiting completion.

The trends are reflective of supply chain disruption that has challenged the manufacturing sector since the pandemic and three in five (59%) firms say they are still facing supply issues. This has been exacerbated by the invasion of Ukraine and the aftermath of the UK’s exit from the EU. Customer relationships are now being impacted: two-thirds (65%) of manufacturers say their customers are having to wait longer for products, with 15% describing the hold-ups as ‘significant’. To offset rising costs such as energy and transportation, over half (55%) of manufacturers are planning price increases for their own products, of 37% on average.

Industry is innovating

The industry is innovating to solve these challenges. Most commonly, businesses are increasing their storage capacity (39%) to prepare for the fact raw materials are taking longer to source. Meanwhile, a third (33%) are “near shoring” to move their supply chains closer to home and 32% have “friend shored” to work with suppliers in countries that have a strong trading relationship with the UK. To spread their bets, 37% of manufacturers have increased the number of different suppliers they work with.

To maintain cashflow and liquidity, over two-fifths (42%) of manufacturing firms are optimising their working capital cycles and the same amount are accessing additional bank funding. 38% are seeking a cash injection from private equity and a third (32%) are selling off assets to raise funds.

Such measures are leaving the industry confident in the medium-term. Two-thirds (66%) of companies think supply chain challenges will improve over the next six months and 86% are confident about growth next year.

Businesses have also doubled down on their commitment to sustainability despite supply chain pressures. Almost two-thirds (64%) of manufacturers say carbon reduction has become an even bigger priority in the past six months, despite nearly three quarters (73%) saying their environmental goals have become less attainable.

Goods trapped in warehouses

Amidst the business optimism, however, Barclays’ report also lays bare the threat that rising costs and supply chain disruption could pose long-term if circumstances do not improve. On average, UK manufacturers only expect to be able to sustain their operations for 15 further months if current conditions continue.

Lee Collinson, Head of Manufacturing, Transport and Logistics for Barclays Corporate Banking, said: “The British manufacturing sector has faced a perfect storm of challenges this year, with rising costs, the war in Ukraine, labour shortages and ongoing Covid lockdowns in China hitting supply chains hard. As a result, billions of pounds worth of goods are trapped in warehouses unfinished, and this may hit industry turnover in the early part of next year.

“However, manufacturing firms have done what they do best and engineered new solutions to limit the impact of the issues they face. As a result, many businesses will enter the new year with a degree of cautious optimism and confidence.”

The findings in summary:

  • Goods with a total value of £23.6bn are currently awaiting completion in UK manufacturers’ warehouses as key parts, ingredients and materials are delayed due to supply chain issues
  • £9bn of steel and metals products, £3bn of food and drink, £2.6bn of plastic goods and £2bn of electronics are unfinished because of supply logjams
  • With six in 10 businesses facing supply chain difficulties, manufacturers are investing in more storage space and moving suppliers closer to home to ease challenges
  • 64% of manufacturers have faced rising costs because of the recent weakness of the pound
  • Trade barriers are a concern for almost one in three manufacturers. They are a particular issue for the electronics industry (43%) and the automobile industry (41%)
  • The top interventions that manufacturing firms would like to see from government are industrial energy transformation (37%) and a more aggressive energy price cap for the industry (32%)

Whitepaper shines spotlight on future of embedded finance  

Posted on by Keith McKinley

London-based plug-and-play finance specialist Weavr has launched its latest whitepaper, entitled ‘Embedded finance: Bringing value into focus.’ The paper, which has been created in collaboration with leading industry experts, reveals a shared and focused vision for the future of embedded finance.

A hot topic amongst the fintech industry, embedded finance is top of the agenda for many. Yet, as Weavr’s whitepaper reveals, there has remained much to discover and understand about how a company can use embedded finance to unleash transformation and make the biggest impact.

The illuminating whitepaper, which is now available to read for free on its website, provides a comprehensive, digestible overview of how embedded finance is perceived today, where it stands to add the most benefits and what businesses require to make that happen. The whitepaper takes a detailed look at three sector-specific applications of the concept.

As Weavr’s whitepaper identifies, individuals are already benefitting from embedded finance technologies on a daily basis, yet the market is predicted to explode within the next five years. With boundless potential for businesses and end users to significantly benefit from the nascent technology. The success of this will be heavily reliant on education around the concept, a point of concurrence between the leading experts in the paper.

In publishing the embedded finance whitepaper, Weavr intends to inform those working in, and alongside the sector. The thought-provoking report makes the case that embedded finance has the potential to transform sectors for the better, and facilitate meaningful, long-term benefits across multiple sectors, however, in order to unleash these changes, education and implementation must be addressed. In fact, as the whitepaper highlights, Weavr is already providing the tools needed to realise the benefits with its Financial Plug-ins.

Speaking on the publication of the new whitepaper, Alex Mifsud, Co-Founder and CEO of Weavr commented: “Embedded finance has all the hallmarks of an unstoppable force that is revolutionising business, just like eCommerce did 20 years ago. We created this paper because we have a vision where most financial services are purchased and consumed through digital products and services that serve broader and more fundamental customer needs like health, education, work, family, and leisure. In these sectors, the focus would become more on the benefits of banking and less on the banking itself – with significant advantages to be had by both the businesses and end users.

“The paper maps out how this vision might be realised, drawing on both our own expertise and that of respected industry leaders who have been generous with their advice on how the real-world benefits of embedded finance can be realised, as well as sharing industry-specific examples to show the concept working in practice.”

At its core, Weavr is on a mission to enable any business to integrate any financial service anywhere its customers need it. The company is doing this by offering its Plug-and-Play Finance solution, which offers simplicity, flexibility, and accessibility to all innovators. What’s more, by adopting Weavr’s solution, innovators don’t need to worry about the burden of upholding compliance, regulation, and data security – because Weavr does it for them behind the scenes. Each of Weavr’s Financial Plug-ins can be tailored to virtually unlimited use cases and are already gaining significant traction with innovative businesses.

CLICK HERE to download the whitepaper.

 

Cleveland Containers secures investment from LDC

Posted on by David Priestman

Cleveland Containers, a leading UK supplier of shipping containers, has secured a minority investment from leading mid-market private equity firm LDC to support the next stage of its growth journey.

Headquartered in Stockton-on-Tees, Cleveland Containers is led by husband-and-wife Johnathan and Jane Bulmer. It specialises in the sale and hire of shipping containers and site accommodation units. The company supplies over 4,500 customers including national housebuilders, construction firms, high street retailers and individuals.

Ranging from 6ft to 45ft in size, Cleveland Containers’ new and used shipping containers are supplied for multiple applications, including everything from storage units to office space and street food vendors to site canteens. This includes delivering bespoke container conversions for projects such as the popular food and drink venue STACK Seaburn in Sunderland, as well as containers for theme park resorts Gulliver’s Valley in Rotherham and the Peak District’s Gulliver’s Kingdom. The business has a network of 15 depots and currently delivers more than 400 containers a week to its customers across the UK.

Cleveland Containers is a market leader in its sector and has grown quickly, with revenues more than trebling in the last four years from £18m in 2019 to £60m in the current year. The business currently employs more than 65 people.

LDC is backing the existing management team to support their growth plan and further enhance Cleveland Containers’ sales and rental offering, while also creating career opportunities for new and existing employees.

To support the next stage of its journey, Andrew Thompson, former Managing Director of portable site accommodation and storage container rental provider Mobile Mini, has been appointed as Chief Operating Officer. Jon Hurford, former Finance Director at O’Brien Waste Recycling Solutions, has also joined the business as Chief Financial Officer and Richard Tredwin, former CEO of SRL Traffic Systems, has been appointed as Non-Executive Chair.

The investment was led by Gareth Marshall, Partner and Head of LDC in the North East, and Investment Manager Naomi McDiarmid, both of whom will also join the board.

Johnathan Bulmer, Managing Director of Cleveland Containers, said: “I’m really proud of everyone at Cleveland Containers. The team has worked tirelessly to cement our market leading position and with LDC’s support we are now in a position to strengthen our business further and welcome more people into our fun and fast-growing business.

“As soon as we met Gareth and Naomi at LDC, we knew that LDC was the right partner to support our growth plans. They have helped to bring in new experience and perspectives to our business, and it’s a real benefit that their Newcastle office is only a short distance away. We feel well supported to continue our growth from our base here in the North East.”

Gareth Marshall, Partner and Head of LDC in the North East, added: “Johnathan, Jane and the team at Cleveland Containers’ commitment to customer service has been key to their growth. As a result of their efforts and creativity, we’re seeing an increasingly innovative use of containers across the UK. We’re looking forward to helping the business to bring the right container, site accommodation and modular turnkey solutions to even more customers.”

LDC has a strong heritage of supporting the growth of businesses within the logistics and warehousing sector. The private equity firm has successfully backed the nationwide growth plans of independent home delivery company Panther Logistics, including creating 300 new jobs and tripling profits, and supported pallet distribution services provider The Pallet Network (TPN) for ten years – helping the business to treble revenue, open new sites and make complementary acquisitions in the process.

Asset Alliance Group funds trackways for ground protection specialist

Posted on by Keith McKinley

Asset Alliance Group has financed 2,000 portable aluminium trackway panels worth more than £2m for Davis Trackhire, after first securing a deal to supply two new Scania drawbar outfits.

The ground protection specialist based in Newmains, Scotland, first approached Asset Alliance Group about extending its 10-strong truck fleet with three new vehicles and agreed a five-year full-service finance hire agreement.

When the team realised Asset Alliance Group also provides competitive and flexible finance for all capital expenditure, they asked them to fund new investment in their stock of aluminium trackway panels which are used to create access over soft ground in various industries including events, film and television and construction.

Co-owner at Davis Trackhire, Blake Davis, says: “We had been aware of Asset Alliance Group because of their reputation in trucks and trailers, but we didn’t know they could also help fund new track for us. They’ve been able to provide excellent rates for the trucks and the panels, and the team have been so easy to work with. The whole process has been seamless.”

Each new Scania is mounted with a 3.5m flatbed body built by PMH Coachbuilders, together with a Palfinger crane and subframe to enable loading and unloading in any location. It operates with an SDC tri-axle flatbed trailer with the full combination purpose-designed to transport 3m-long aluminium trackway panels nationwide.

The trucks feature a striking livery applied by CubeWraps using 3M IJ180mC film for a metallic paint-like effect and finished with overlaid reflective logos for 24/7 visibility.

Each vehicle will operate Monday to Friday and will likely cover 500-600km per week. With driver comfort in mind, a crew welfare pod has been mounted behind each cab featuring a toilet, shower, bunk beds, fridge, microwave and coffee machine.

Founded in 2010, Davis Trackhire is a UK-wide company owned and operated by Blake Davis and his brother Travis. It has one depot in Newmains and another in Retford, which together hold stock of 10,000 heavy duty trackway panels.

DF Capital earmarks £30m for start-ups

Posted on by Keith McKinley

DF Capital is designating £30m of inventory finance facilities for start-up and young businesses across its key industries in the UK this year.

The initiative will see credit made available for early-stage dealers and distributors in the agriculture, materials handling, industrial, lodges & holiday home, motorhome & caravan, motorcycle, marine, and transport sectors. It is designed to deliver extensive support for entrepreneurship across the UK and provide the assistance that businesses may have otherwise struggled to get through a traditional commercial loan.

Championing industry growth is DF Capital’s raison d’être. Since its inception in 2016 as a specialist bank, its goal has always been to help businesses across the UK achieve their ambitions. This is done by providing both SMEs and larger organisations with innovative and flexible finance solutions, allowing them to better manage their cashflow, inventory and achieve order book growth.

Furthermore, DF Capital says it ensures that it is easy to do business with by leveraging technology to deliver its services, resulting in nimble application, approval and onboarding processes and rapid access to capital.

Andy Stafferton, chief commercial officer at DF Capital, commented: “We want to make sure that these businesses, particularly the early stage ones, have the same access to the finance and support they need in order to grow and flourish. These businesses tend to face the biggest challenges – and more so during the last two years – because typically they do not fit into banks’ traditional credit models.

“We believe that earmarking such a significant amount of funding will enable the next generation of entrepreneurs to unlock their dreams and help their businesses survive at such a crucial juncture in their lifecycle.”

DF Capital is expecting high degrees of interest in the scheme and has set up a dedicated webpage for firms to find out more information. CLICK HERE to access it.

 

 

EP forklift importer gets finance boost

Posted on by David Priestman

DF Capital has partnered with Handling Equipment UK Ltd to help support its dealers in the UK electric forklift market.

Handling Equipment UK is the UK importer of EP Equipment material handling machines. Based in Stourbridge in the West Midlands, it is a family-run business that employs 20 people. It currently works with over 40 material handling dealers in the UK.

DF Capital was initially approached by EP Equipment, a leading global manufacturer specialising in lithium-powered warehouse equipment. There is growing interest in EP Equipment’s Li battery-powered forklifts because these particular vehicles can now do everything a diesel or gas machine can do – including working outside – and they don’t produce any emissions when they are being used.

EP Equipment is continually expanding its footprint in the UK via distributor partners and introduced DF Capital to Handling Equipment UK. Handling Equipment UK was importing increasing numbers of EP material handling machines into the UK for supply to dealers and therefore was looking for a bespoke facility to support this activity.

A tailored £1m floorplan facility was created for qualifying dealers which provided Handling Equipment UK with the peace of mind to take orders, knowing they would be paid immediately. This also eased cashflow and managed any financial risk. A unique 60-day cost-free floorplan facility is offered to a number of qualifying dealers, allowing them to hold additional stock to meet the growing demand for the lithium-powered units, as they know that funding is guaranteed to them.

Handling Equipment UK has sold in excess of 200 EP electric forklifts in the last year.  Due to the considerable demand for the units, the company estimates that double this amount will be sold in 2022 and then twice as many again in 2023.  The inventory finance facility from DF Capital will aid this growth.

Andy Williams, managing director at Handling Equipment UK Ltd, commented: “The clock is ticking for companies across Britain, aiming to do their part to cut carbon emissions and meet stringent government targets. As part of this, electric forklifts are vital as part of the way forward and we have seen massive demand for them over the last couple of years.

“EP Equipment in particular has developed a first-rate machine that is both well-priced and ticks the ‘environmentally green’ box. The only thing missing – until now – was a sensible and flexible way to finance them, particularly when customers wanted to try before they bought them.

“We are delighted to be working with DF Capital because of its vast expertise in running floorplan facilities and the fact that it is providing us with the holy grail with its rental scheme.”

Brian Warbrick, head of vendor origination at DF Capital, said: “We’d been talking to EP Equipment for a while and it’s a pleasure to partner with one of its key distributors. Boosting environmental sustainability is always at the top of our agenda at DF Capital – we work with a number of innovative and ‘green’ companies and the electric materials handing market is a very exciting one and key to helping lower CO2 emissions.

“Handling Equipment UK is a rapidly growing player in this space and we are glad that we were able to help it support its dealers in a way that no other funder could.”

 

BNP Paribas makes key UK appointments

Posted on by Keith McKinley

BNP Paribas Leasing Solutions UK has appointed Mark Richards as General Manager and Tim Pulleyn as his successor as Head of Partner Sales.

Richards (pictured) is a highly experienced industry professional with over 25 years’ experience, having previously held roles at both GE Capital and Hitachi. His career has been 100% focussed on vendor and broker financing, building strong long-term customer relationships based on understanding the importance of service excellence & partnership. In his previous role as Head of Partner Sales, Richards has been instrumental in taking the business to the next phase of the business growth and development.

In his new role, Richards will be responsible for the whole Equipment Logistic and Solutions business division, overseeing Sales, Credit and Operations across the following markets – Construction, Food and Agriculture, Materials Handling and Commercial Vehicles. As well overseeing the subsidiary company, BNP Paribas Rental Solutions, which specialises in commercial vehicle contract hire solutions.

On his appointment, Mark Richard commented: “Despite the obvious challenges of the last 18 months due to the pandemic, we have seen strong year-on-year growth across many areas of our business. I would like to say a huge thank you to all our customers for their support and trust in us during this period and to our staff for their commitment.

“The long-term view of BNP Paribas puts Leasing Solutions firmly at the heart of the group strategy, enabling us to weather the different economic cycles while maintaining consistency in our proposition, and to build lasting relationships with our partners in a mutually beneficial way.

“This, combined with the strong, talented team I will be working with as we enter this next chapter, makes me feel excited about the future for both us and our customers. For the leadership team and I, it’s critical we are in constant communication with our customers, hearing them so that we can listen, learn and act to deliver a service that is consistent, reliable and does what they need.”

Pulleyn is also highly experienced within the industry, as a proven credit and sales leader across a range of disciplines including global banking, international leasing and asset finance. Most recently having held the position of Head of Structured Finance at Metro Bank before joining BNP Paribas Leasing Solutions UK in 2019 as Head of the Broker division. Since 2019, Tim has fostered great relationships with the Brokers, making a significant growth impact, capitalising on his already extensive network of contacts and knowledge.

Pulleyn said: “I am delighted to be taking up this new role within the company. I feel proud to work for a business that is one of Europe’s most trusted providers of asset finance. As a team, we are committed to supporting partners with specialist knowledge to help them achieve their growth ambitions – performance through partnership. One of the ways we do this is by building strategic alliances, aligning our expertise to the needs of our partners through a deep understanding of their requirements.

“In the next few months, one of my priorities will be to continue to talk to our customers, understand where we can really add value in the leasing cycle and make sure we deliver that value consistently, day in day out.”

Richards said: “Tim’s appointment as Head of Partner Sales further cements our ambitions to keep putting our customers at the heart of everything we do. Tim and his team will continue to build real customer focus, ensuring it remains at the forefront of every decision we make.”

Rachel Appleton, CEO of BNP Paribas Leasing Solutions UK, commented: “I am absolutely delighted to welcome both Mark and Tim in their new roles. As General Manager, Mark will be able to build further on his achievements to date. Mark has proven his commitment to both our customers and our business, building a sales strategy, which focuses on adding value at every stage in the leasing cycle.

“Likewise, Tim has made a significant impact across our broker markets since joining us in 2019, using his wealth of knowledge to build a solid proposition.“

Managing finance and payments within logistics

Posted on by Keith McKinley

Self-employment technology specialist, Wise, is working in partnership with over 250 delivery providers across the UK to try and improve their financial affairs through its software and in-house expertise.

The UK logistics industry is ever-evolving, with retailers, delivery providers and self-employed delivery drivers working harmoniously to get goods transported quickly and efficiently.

However, when it comes to handling finance, tax and compliance issues relating to this vital workforce, many firms are still struggling, spending vast amounts of admin time sorting these recurring issues.

Tom Hills, Chief Operating Officer at Wise, said: “With the impact of Brexit on workforces across the UK and a natural surge in demand from online retailers, it is a crucial time for logistics firms to recruit the right self-employed delivery drivers and importantly retain them.

“By using our platform, our clients are now able to take the stress out of this array of finance issues which need time and attention when you’re engaging a large self-employed workforce. For instance, we help a large number of our clients with payroll management saving them time and stress and providing completely transparent payments through to their subcontractors.”

Improving satisfaction and reducing friction between main contractors and their self-employed workforce will naturally improve retention and reduce driver turnover as the industry continues to recover following the pandemic.

Paul Rodney, Managing Director at PanAm Logistic Solutions, said: “Our business depends on working closely with a number of self-employed delivery drivers and traditionally sorting their onboarding, invoices and expenses has taken a lot of administrative time. However, through using the Wise platform we’re able to hand this over to specialists and through their mobile app our drivers are able to get complete transparency over their invoices, expenses and even automatically generate their tax returns.”

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