MOT EXTENSION LEAD TO GARAGES BORROWING FUNDS

A London-based commercial lender has reported a 35% increase in the average amount advanced to MOT test centres in 2021, compared to the amount lent to garages in 2019. In addition, there has been a 21% rise in comparison to 2020.

Requests for funding from test stations have increased

Prior to the lockdowns last year, MOT garages were eighth on the list of most frequent clients for finance requests at lender 365 Business Finance. such businesses are now coming in fifth place – just behind the funding needs of convenience stores and food retailers, general retail outlets, restaurants, and the pubs and bars industry.

READ: MOT EXTENSION BOON OVER

Due to extended MOTs offered to some motorists during the first lockdown, which began in March 2020, a new spike in demand for MOTs towards the end of the calendar year has formed. As a result of this new seasonal peak, which spans across autumn and the beginning of winter, MOT garages are sourcing funding to keep on top of the extra demand according to the finance provider.

READ:  56% OF MOTORISTS USED THE MOT EXTENSION

Managing Director at 365 Business Finance, Andrew Raphaely, said, “There are a number of drivers in the UK who are now having to MOT their cars later in the year, because of the March through to early summer lockdown in 2020 when many garages were not able to open, and the government extended the validity of MOTs by six months for all the motorists impacted by such closures.

“Although busy MOT test centres from September to December is essentially a good thing for these businesses, they are now having to plan further ahead financially to cover the extra demand during these months in terms of stock and staffing. Also, our customers are wise to the fact that merchant cash advance funding can help with cashflow management during the now unusually quieter months of the year too. The pandemic has certainly interrupted the normal pattern of annual MOT bookings for garages, for many years to come” concluded Raphaely

Published by Greg Whitaker

Editor of CAT Magazine and an experienced motoring journalist @GregWhitaker5

Movers & Shakers: New appointment at MAHA UK

All the latest changes from across the sector, including new roles, promotions, and retirements

Read More

Autotech Group announces a host of leadership changes

Moves come as company transitions into a new phase under the leadership of CEO Simon King

Read More

Aftermarket firms that’ve failed to pay living wage named

One MOT centre owned employees more than £15,000; businesses were publicly named and shamed by the government

Read More

ELTA to stock Lucas bulbs at all Halfords stores

Pivotal factor of the deal saw all plastic packaging from Lucas and Halfords bulbs range removed

Read More

New grey area puts anyone who modifies a car at risk of prosecution

A workshop was recently found guilty of carrying out alterations to a car to make its exhaust louder

Read More

Go to comments

Your email address will not be published. Required fields are marked *