BHA finance deal folds
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• The Road Haulage Association faces a blip in its cashflow following the closure of the company which provides members with finance schemes.
RHA members about to make use of the deals offered by General Guarantee Finance will now be forced to look elsewhere or to wait while the RHA finds a new associate, which could take months.
In the meantime the RHA will miss the commission it would have received when members signed up to the scheme.
Its last finance partnership ended when Lloyds Bowmaker said it could not help businesses with fleets of fewer than seven vehicles. It selected General Guarantee based on its "45-year knowledge and experience of the haulage industry".
General Guarantee, part of Great Universal Stores, took the decision to close after offers to buy the business did not meet expectations. The full winddown of the company will take over three years.
RHA's Fiona Holdsworth says: "We are negotiating the end of our contract with General Guarantee but there is no cause for concern over revenue this year." GUS chief executive John Peace says: 'The decision to wind-down General Guarantee was not an easy one. We have satisfied ourselves that this course of action is in the best interest of GUS."