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Financial Standing

Financial Standing is a mandatory continuing requirement of holding an Operator’s Licence. This means that the business must have average available funds of a specified minimum amount. Levels of Financial Standing are reviewed annually. This is to effectively address impacts of exchange rates.  Call us to find out more – 0800 046 3066

Financial Standing is a mandatory continuing requirement of holding an Operator’s Licence. This means that the business must have average available funds of a specified minimum amount. Levels of Financial Standing are reviewed annually. This is to effectively address impacts of exchange rates.

 

KMOTR banner financial standing

 

According to HGV’s Schedule 3, Paragraph 6 of the Goods Vehicle (Licensing of Operators) Act 1985 all Applicants or Holders of a Standard Licence the purpose of this requirement is for the business to have a sufficient level of financial resources available to make sure the proper administration and establishment of road transport is to be continued. There must be sufficient funds available to properly finance any operation. Evidence must be shown to support your application.

The revised financial standing levels for standard national and international license applicants and holders are set by legislation and are announced by the Department for Transport. The total sum is based on the amount of vehicles multiplied by the current statutory figure.

Whilst you would ordinarily only be asked to demonstrate financial standing at application, variation and renewal of the licence, you must ensure that you continue to meet the requirements. A call to Public Inquiry or an investigation by the Traffic Commissioner can mean that you are asked to send three months’ evidence.

TheSenior Traffic Commissioner’s Statutory Document on Financial Standing https://www.gov.uk/government/publications/traffic-commissioners-finance-january-2017

gives advice on acceptable forms of evidence. In particular:

All documents provided need to be under the same name as the applicant or license holder.
• Bank account statements must be provided from the last 3 months.
• Invoice finance agreements are acceptable
• Cash is not often appropriate but occasionally it may be accepted for those who claim to deal in cash only.
• Credit Card accounts if provided must be supported by evidence to show funds available meet criteria. Where credit cards are solely relied upon, the Traffic Commissioner may reject this as suitable evidence.

For information on financial standing levels contact our specialist transport team for help on 0800 046 3066 

For information on financial standing levels contact our specialist transport team for help on 0800 046 3066

got a question? Speak to Keep Me On The Road Solicitors today