Hi, I will be applying for the O licence soon and was wondering what is the best amount of units and trailers to put on GV79 application as for the starting company. Thanks,
Only you can answer that question. You will be limited by the amount of money you have in the bank as to how many you can apply for.
Having applied for just one unit and trailer when I first started out I would highly recommend going for 2 or even 3 if you have sufficient funds to cover them. I could have hired an extra wagon or two during busy periods but as i was only authorised for one I had no room to manoeuvre.
Having said that, DVSA now require that you have access (cash, credit cards, etc) to £7200 for the first wagon and £4400 for each subsequent, meaning you would have to show £16000 available for 3 units 3 trailers. They will require proof of this with your application.
Matt.
xfmatt:
Having said that, DVSA now require that you have access (cash, credit cards, etc) to £7200 for the first wagon and £4400 for each subsequent, meaning you would have to show £16000 available for 3 units 3 trailers. They will require proof of this with your application.Matt.
And (unless it was just me) they will make it a condition of granting the O licence that you also have to supply bank statements covering your second month of trading, showing that you still have the minimum funding available. This will typically cover a period when you will have laid out for nine week’s diesel, yard rent, at least one inspection etc etc etc but when you still have yet to be paid for work you did in week 1. I think I managed it with £14 to spare.
Agree with Matt, if you can get the funds, apply for as many vehicles as you can, and also note that the financial requirements are the same whether you have one trailer or a hundred, it’s only vehicles it applies to.
DVSA will accept an overdraft facility towards the financial standing although it’s unlikely the bank will give you one at the start, I have only just managed to arrange an overdraft of £12,000, which will allow me to release £12,000 of my own money back into my personal account.
It also depends on whether you have your own operators CPC. if you have to employ an external transport manager then 1-2 vehicles will be 8 hours for him/her, 3-5 will be 15 hours, and so on.
Thanks for replies. Originally i wanted to go for 2 units and 2 trailers but now will go with 3/3.
Harry Monk:
xfmatt:
Having said that, DVSA now require that you have access (cash, credit cards, etc) to £7200 for the first wagon and £4400 for each subsequent, meaning you would have to show £16000 available for 3 units 3 trailers. They will require proof of this with your application.Matt.
And (unless it was just me) they will make it a condition of granting the O licence that you also have to supply bank statements covering your second month of trading, showing that you still have the minimum funding available. This will typically cover a period when you will have laid out for nine week’s diesel, yard rent, at least one inspection etc etc etc but when you still have yet to be paid for work you did in week 1. I think I managed it with £14 to spare.
Yeah I started in November and the conditions added to my licence were that I sent them bank statements covering January February March.
Don’t forget you may also be limited by the amount of space at your designated Operating centre…they are getting keen on this now too - especially in urban areas. You need to be able to park all trucks/trailers at your Operating Centre - all at once, even those applied for on the margin. Not just financial standing to consider!!!
And there has to be enough parking space for the drivers own cars without being a obstacle.
You can always rent a yard and keep just trailers there with no o-licence if space is at a premium.
If it isn’t remember there is no financial requirement for trailers but I wouldn’t go silly to the point it might raise eyebrows.
Daz1970:
Don’t forget you may also be limited by the amount of space at your designated Operating centre…they are getting keen on this now too - especially in urban areas. You need to be able to park all trucks/trailers at your Operating Centre - all at once, even those applied for on the margin. Not just financial standing to consider!!!
Getting keen?
You have always had to have adequate off road parking and access for all vehicles and trailers.