£450k CBIL means rescue and recovery firm will keep on trucking
The owner of a vehicle rescue and recovery firm says the business he built up from a single truck to a fleet of 75 was facing the end of the road when the coronavirus outbreak hit, but its future is now secure thanks to support from Lloyds Bank.
Bud Rescue & Recovery provides a 24-hour breakdown and recovery service across the home counties from its base in St Albans, operating 24 hours a day, seven days a week.
Founder Bud Malkani says that within a week the volume of work coming in fell from around 200 jobs a day to less than 20.
He has now had to furlough the majority of his 56 employees, retaining just a skeleton staff.
Bud said: “Coronavirus was killing our business.
“There are fewer cars on the road because people are staying at home, so there are less breakdowns.
“Another important revenue stream for us is collecting repossessed vehicles on behalf of finance companies, which has all come to a halt too.
“We’re looking for alternative work to cover the bills, including growing the amount of work we do delivering new vehicles to dealers, but we’ve had to furlough the majority of staff.”
Now Lloyds Bank has provided a £450,000 loan through the Coronavirus Business Interruption Loan Scheme (CBILS).
Bud said: “Without this money, we wouldn’t have been here much longer.
“Time was of the essence and our business relationship manager was able to confirm the funding within three days.
“It means that, once this is all over, we’ll be back bigger and better.”
Bud Rescue & Recovery, which was founded in 2000, had recently moved from Borehamwood to larger premises in St Albans to accommodate its growth.
The £4.5m turnover business works with major recovery firms including Green Flag, AA and RAC, as well as many smaller providers, completing around 45,000 jobs a year.
Business banking manager Ben Clarke said: “Bud Rescue & Recovery is a strong, growing business that has seen its workload virtually disappear because of the unprecedented impact of the coronavirus.
“It needs extra support during these tough times and Lloyds Bank is working closely with business customers right across the UK to offer guidance and help them access the support that’s available, including through CBLIS.
“Securing this funding will leave Bud Rescue well placed to resume business post Covid-19, securing the furloughed employees’ jobs for the foreseeable future and supporting their key clients and suppliers.”