Financial Standing

In order to make a successful O Licence application you will need to demonstrate that the entity applying for for the licence has sufficient funds available to cover unexpected running costs such as maintenance and tyres etc.

As of May 2024 the financial levels are as follows:

Restricted Operator Licence: £3100 for the 1st vehicle space and £1700 for each additional space.

National & International Operator Licence: £8000 for the 1st vehicle space and £4500 for each additional space.

The above applies to both PSV and HGV applications.

How is financial standing calculated?

The Traffic Commissioners Office will want to see a bank statement for the applicant entity which is no more than two months old.

The average daily balance over the period of the 28 day bank statement is then calculated.

The bank statement must be provided, available balances on overdraft agreements are permissable and can be supplemented with available balances on credit cards. Several bank accounts can be submitted but ALL must be the name of the entity applying for a licence.

Where a company utiilises Invoice financing a form must be completed by the factoring company showing available draw down.

In the case of a Sole Trader the Traffic Commissioner may accept a sworn “Statutory declaration” signed by a family member or close friend that has the funds readily available.