Hi guys, I would like to get the O licence. I know that I need to proof financial standing for first vehicle £8,000 and £4,450 for each additional vehicle.
Easy way is to put the money on the bank account and wait one month and then prove it with bank statement, but what if I dont have £8,000 left? Is there any insurance cover or bank cover for financial standing so for example bank would give me a statement that they guarantee £8,000 for me for the first vehicle?
Thank you for any ideas or help that can make me a way to make my O licence.
It was a long time ago since i had to think about this but im sure you just need access to the money, not to physically have it in the bank, ie credit cards or an overdraft, might have changed but im sure thats how i remember it
chaversdad:
It was a long time ago since i had to think about this but im sure you just need access to the money, not to physically have it in the bank, ie credit cards or an overdraft, might have changed but im sure thats how i remember it
Quite right. When we changed from sole trader to limited, the TC would not accept funds in the sole trader account as classified as a separate business. Just got an overdraft facility with the bank and a company credit card with a credit limit. TC accepted this as available funds with no issue for the new licence.
chaversdad:
It was a long time ago since i had to think about this but im sure you just need access to the money, not to physically have it in the bank, ie credit cards or an overdraft, might have changed but im sure thats how i remember it
Quite right. When we changed from sole trader to limited, the TC would not accept funds in the sole trader account as classified as a separate business. Just got an overdraft facility with the bank and a company credit card with a credit limit. TC accepted this as available funds with no issue for the new licence.
How long ago was this though ?
Since HMRC has jumped the queue regarding insolvency, banks are now getting very strict regarding any lending to business, hence the flow of “locked gates” we are seeing at the moment
Just when you need them, they pull the rug away, so don`t expect too much help for a “start-up” anytime soon…
If you can, trade with your own money, steer clear of the high street leeches ….
I put 17k of my own into the business acc to show financial standing.
Theyll want it to be in there for atleast 3 months before theyll accept it. Dont forget it has to be available at all times, and the tc may randomly ask to prove your financial standing at any time he sees fit.
No-one wants to put an agreed overdraft in place to cover my financial standing, even though iv told them il never use it and its just a ticking the box exercise.
chaversdad:
It was a long time ago since i had to think about this but im sure you just need access to the money, not to physically have it in the bank, ie credit cards or an overdraft, might have changed but im sure thats how i remember it
Quite right. When we changed from sole trader to limited, the TC would not accept funds in the sole trader account as classified as a separate business. Just got an overdraft facility with the bank and a company credit card with a credit limit. TC accepted this as available funds with no issue for the new licence.
How long ago was this though ?
Since HMRC has jumped the queue regarding insolvency, banks are now getting very strict regarding any lending to business, hence the flow of “locked gates” we are seeing at the moment
Just when you need them, they pull the rug away, so don`t expect too much help for a “start-up” anytime soon…
If you can, trade with your own money, steer clear of the high street leeches ….
chaversdad:
It was a long time ago since i had to think about this but im sure you just need access to the money, not to physically have it in the bank, ie credit cards or an overdraft, might have changed but im sure thats how i remember it
Quite right. When we changed from sole trader to limited, the TC would not accept funds in the sole trader account as classified as a separate business. Just got an overdraft facility with the bank and a company credit card with a credit limit. TC accepted this as available funds with no issue for the new licence.
And how about the Business Insurance which would cover public and product liability insurance, would that be valid as a financial guarantee for O licence? Or has the insurance have a different name?
No financial standing- you have to show certain amount and plus - to be available in a account 28days plus. Cant be below the amount!!! Insurance - has nothing to do with that!!! Lol
