Vanarama, a UK-based independent commercial vehicle broker, has launched a mini bond campaign on Crowdcube to raise £1.5 million. This is part of the company’s four-year plan to raise £3.4 million for its new commercial vehicle stock.
Sharing details about the campaign, the Vanarama team shared:
“The Vanarama Bond is a very straightforward idea – you loan money to us and we agree to pay you interest quarterly per annum and redeem your initial investment (the ‘principal’) when the Bond(s) mature in 4 years. The Vanarama Bond will be issued by Autorama UK Ltd.
“We have designed the Vanarama Bonds to be a simple investment. For an initial investment of £500 or more, Autorama UK Ltd will provide registered holders of Vanarama Bonds (“Bondholders”) with a fixed-rate return of 8% gross interest per annum over the course of an initial four year term payable in cash.
“At the end of the initial four year term and on every anniversary thereafter, you have a choice: either continue to hold the Vanarama Bonds for another year on exactly the same terms or give us six months’ notice and we’ll redeem your Vanarama Bonds. On maturity of the Vanarama Bonds, the full amount of your initial investment will be repaid without any deductions or charges.”
Commenting on the growth of Vanarama since it was founded in 2004; Managing Director Andy Alderson explained:
“The commercial vehicle sector in the UK is predicted to grow by 10-12% this year alone. In 2014 our market grew by 11% whereas our sales volume grew by 56%. Our turnover in 2015 is £18 million, an increase of 76% on 2014. We’re a strong, customer-focused brand that continues to invest heavily in our internet platform so that customers can find their vehicle online, access a quote in seconds and order their new van in minutes. We invest heavily in bricks and mortar too, employing 95 people at our head office in Hemel Hempstead, with 52 field-based regional offices throughout the UK. Our Group Chairman is David Bernstein, former Chairman of The Football Association and current Chairman of Ted Baker.”
He then added:
“We’re now embarking on the next stage of our growth, aiming to do something our industry has never managed to do before; namely to deliver a new commercial vehicle to a customer within 3 working days rather than the industry standard of 3 weeks. The Vanarama Bond will help us to achieve this ambitious aim. Our customers are time pressed and their van is vital to their business. Speed of delivery is crucial. We’re meeting a real customer need and in doing so should strengthen our position at the top of the leader board.”
Each of Vanarama Bonds are issued on a first come, first served basis.
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