Must we be able to demonstrate that we meet the financial standing requirement all the time? Isn’t the whole idea that we spend the money to maintain our vehicles?
Financial standing is not just a one-time requirement for Heavy Goods Vehicle (HGV) operators; it's ongoing. The Traffic Commissioner can request evidence of this financial standing at any point, not merely during the application, renewal, or public inquiry stages.
In an ideal situation, operators would maintain a separate account containing the required sum, based on their number of authorised vehicles, to ensure they always meet the financial criteria. However, most operators rely on their operating account's average three-month balance as proof of financial standing. This average is considered a more realistic measure, given the natural ebb and flow of funds.
Failure to meet the financial requirements has serious consequences. The Traffic Commissioner is mandated to revoke the licence of any operator who can't prove financial standing. There is a discretionary grace period of up to six months for operators to rectify this, but failing to do so will almost certainly result in licence revocation.
So, in summary, maintaining appropriate financial standing is not optional; it is a continuous requirement and crucial for keeping your operator's licence.
Call us on 0333 567 1966 to discuss how we can help you on your journey to compliance or contact us here.
