Ogilvie Fleet accelerates expansion plans with HSBC funding
Ranked as one of the largest funding arrangements of its kind to a Scottish-based business in recent years, it will enable Ogilvie Fleet to potentially almost double its fleet size by 2020 as it competes for contracts with Britain’s largest leasing companies.
The finance package, which combines rental securitisation and core asset funding in a structured and complementary way, was designed and arranged through a close collaboration of HSBC’s Asset Backed Finance Team, HSBC Equipment Finance and Scottish Corporate Team.
The HSBC partnership provides Ogilvie Fleet, which recently celebrated its 60th anniversary, with a two-year rolling finance facility renewed every 12 months
Gordon Stephen, managing director, Ogilvie Fleet, said: “The finance package underpins our confidence to grow the fleet. While our focus is on organic growth, if an acquisition was possible we would not rule it out.”
The independent privately owned contract hire and leasing company, which currently operates a fleet approaching 12,000 company cars and vans, announced earlier this year that it was to target the UK’s larger fleets as it looked to expand out of the sub 100-vehicle heartland which has traditionally been its focus.
Stephen explained: “There has been a shortage of funding in the marketplace, but our finance package with HSBC turns that on its head. Borrowing costs for Ogilvie Fleet are reduced, which means we are able to compete for fleet business on a much more level playing field with the UK’s largest bank-owned contract hire companies.”