Rotala mitigates coronavirus impact with HSBC
West Midlands-based Rotala has increased its overdraft facility with HSBC UK by £2.1 million to help mitigate the commercial impact of lockdown.
Established in 2005, Rotala mainly runs bus services in the North West, Midlands and Greater London. It will use the funding to mitigate the effects of an expected uneven cash flow profile during this uncertain period. The business had seen an 85% reduction in passenger numbers since the start of the pandemic. Over the past few weeks, the business has started to see demand for its services increase as certain industries return to work and lockdown restrictions are eased.
Simon Dunn, CEO of Rotala, said: “We’re operating in an uncertain world right now. Due to the coronavirus, we had to restrict our bus services to about 40% or 50% of normal in accordance with the requirements of Local Authorities and the Department for Transport. The funding from HSBC UK has enabled us to even out the peaks and troughs of our cashflow whilst many of our customers are unable to travel. We would like to thank our Relationship Manager at HSBC UK, David Arthur, who demonstrated a clear understanding of our position and who was able to turn around our funding request in a short timeframe.”
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