C&H Carpets and Flooring has signed a new deal with Northgate in a move that will enable it to expand and upgrade its ageing fleet, while avoiding the downtime and repair costs associated with older vans.

Northgate has purchased the flooring company’s existing vans and is providing new vehicles on a rolling basis, currently at a level of one van per month. The agreement does not require upfront outlays of capital, enabling C&H to invest elsewhere across the business, while Northgate’s inclusive service, maintenance and repair (SMR) option provides additional cost savings.

Neil Close, managing director of C&H Carpets and Flooring, said: “We were looking for an option that would save us both time and money while also helping us avoid the short-term strain that rapid expansion can place on cash flow.

“Many of the service solutions we considered required deposits and other upfront payments, and also meant we would have to deal with the additional hassle of selling our existing older vehicles.

“Northgate’s all-inclusive vehicle hire package, on the other hand, enables us to replace and upgrade our vehicles on a flexible basis in line with our own requirements. That gives us a level of financial and operational control that would otherwise be difficult to achieve.”

The average age of Northgate vehicles is three years, which has helped C&H achieve a noticeable reduction in fuel costs and MOT bills, together with an associated increase in cash flow.

The annual saving on SMR costs alone across the 18 vehicles in the fleet is £18,000, while there has been a significant reduction in downtime, ensuring that service is uninterrupted and customer demands consistently met, said Northgate.

By removing the need to purchase new vehicles, in addition to the funds raised from the sale of its existing fleet, working capital has also been increased by around £30,000.

Northgate’s all-inclusive service also includes the provision of a dedicated account manager who is available to assist a business with its requirements and foster a positive ongoing partnership.

Liam Nicholas, new business manager at Northgate, said: “Northgate has enabled C&H to benefit from significant cost and time savings, which has boosted cash flow and provided essential peace of mind.

“With almost £50,000 saved through SMR and purchase costs alone, in addition to the significant reduction in downtime, Northgate’s flexible vehicle hire solution enables C&H to focus on delivering the best possible service to its growing customer base.”