How it works

Everyone in business understands that...

…holding cash reserves is never the best use of an asset, especially in businesses like Haulage and Passenger Vehicle Companies where margins are generally incredibly tight. Financial Standing is required to obtain the Operator’s License. This is why the proof of “financial standing” can be so difficult for haulage firms across the UK. The Bond is there to meet the Financial Standing Requirement. Every Company who needs to get an Operator’s License must show Financial Standing of a set Amount for the first and all subsequent vehicles they have in their Fleet.

Haulage Firms and Passenger Vehicle Companies that use the Operator’s License Bond to support and meet the requirements in order to get an Operator’s License, pay an upfront fee for the Bond and provide Security to backup / support the Bond . The exact amount payable is based on the Bond Value and the Amount of Security is based on the Financial Position of the Company and any Parent / Associate Companies but the approximate cost would be circa 15% of the Bond Total (dependent on the available Security presented to CHJ Management) for the first year and then 2.5% for the remaining years of the license. Most Licenses are in place for five Years and the Bond can be issued for up to five years. The five‐year period matches the same time frame required by the Office of Traffic Commissioners which is an Integral part of the Operator’s License process.

• We understand that HAULAGE AND HAULAGE / PSV firms are required as part of the licensing process to prove that they have satisfactory “financial standing”.
• This is evidenced by the relevant HAULAGE AND HAULAGE / PSV firm showing that they have finance which is readily “available”.
• The necessary levels of finance are set – currently £8,000.00 for the first vehicle and

£4,450.00 thereafter.

• HAULAGE AND HAULAGE / PSV firms must show that the finance is “available”.
• The Bond helps Road Haulage Companies and Passenger Vehicle Companies to meet the Strict Financial Regulations and freeing up their Cash Flow
• We can try to assist with a surety bond Product to HAULAGE AND HAULAGE / PSV firms.
• The bond would be taken out by the HAULAGE AND HAULAGE / PSV firm with a bond provider (the Surety).
• The HAULAGE AND HAULAGE / PSV firm would pay an Annual fee up‐front for the bond for the first year and a Minimal Yearly Fee for the subsequent years up to 5 Years
• All Bonds are backed up by Security