A 23 year old Nottingham entrepreneur has acquired a car hire business, after receiving funding from Lloyds TSB Commercial Finance.

James Lovett established his first business – SSS – in 2006, supplying security officers to the construction and education sectors.

Since its inception, the business has grown its turnover to £1.2 million and now employs 60 staff.

Now, Lovett has acquired a car hire business, Pacer Vehicle Rental, from its retired founder. Within 12 months, he aims to double its turnover, employ 10 new staff and open another office in Nottingham.

To fund the acquisition, Lovett used asset based lending (ABL) facilities, from Lloyds TSB Commercial Finance, to advance the invoices of SSS.

Lovett commented: “Despite the current market turmoil, there are still opportunities out there for entrepreneurs wanting to seize them. So far the security industry has been relatively insulated from the downturn, as health and safety will always be of paramount importance.

“There is also an increasing demand for security officers to take more of a leading role in the day-to-day running of a construction site and we aim to capitalise on this.”

As well as expanding his first business, SSS, Lovett’s entrepreneurial spirit means he is constantly on the look-out for new market opportunities.

He continued: “With car sales slowing, it is likely that there will be increasing demand for car hire services and the opportunity to acquire Pacer Vehicle Rental was too good to pass up.

“Without Commercial Finance’s help, we wouldn’t have been in a position to complete the acquisition or open a new office.

“ABL suits our needs perfectly as a means of releasing the capital from Secure Serv Security’s invoices that was needed to support the acquisition of Pacer Vehicle Rental.

“We have a solid working relationship with the team at Commercial Finance and they have provided a great service, which we will continue to recommend to others.”

Graham Collins, regional manager for Lloyds TSB Commercial Finance, commented:
“ABL is becoming an increasingly viable option for entrepreneurs who are trying to grow their businesses during these turbulent times.

“It enhances cash flow and bridges the gap between invoices being issued and payment being received, which can be vital for companies needing quick access to working capital for an investment.

“ABL is ideal for both young and more established businesses - and as the Secure Serv businesses grow, the facilities can be flexibly tailored and additional assets can be borrowed against, enabling more acquisitions or restructuring.”

March 2009