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FINANCIAL STANDING

9th June 2011, Page 24
9th June 2011
Page 24
Page 24, 9th June 2011 — FINANCIAL STANDING
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The TC must be satisfied that you have sufficient capital and reserves available to meet the requirement to be of the appropriate financial standing for the number of vehicles that you wish to operate. This is currently £8,100 for the first vehicle and £4,500 for each subsequent vehicle, under a standard national or standard international licence; and £3,100 for the first vehicle and £1,700 for each subsequent vehicle, under a restricted licence. It is the number of vehicles authorised by the O-licence that is used; not the number of vehicles you have in possession.

Funds must be readily available to the operator: this can be done by way of an unused overdraft facility or showing cash in the bank. There are other methods available to operators to satisfy the requirements of financial standing but it is important to demonstrate that you have the necessary funds available from the outset. For an existing business, the strength of the capital and reserves on the balance sheet will be relevant. For some operators, the financial standing requirements may mean the difference between holding an O-licence or not, or restrict the number of vehicles that can be operated.

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