A new source of finance for the logistics industry has been established by LGCU. It promises to be an ethical and cost-efficient source of borrowing for members of the logistics sector.

To gain access to the LGCU’s services, those interested require membership of the Logistics Guild, which is free. Members will then gain access to loans for personal training, learning and career development, and bursaries. Small loans will also be offered for personal lifestyle purposes at competitive market rates.

 

The initiative is designed to support people at all levels of their careers in the logistics sector from entry level jobs to upper management. Funds can be provided for gaining an LGV licence or a CPC. Nearer the other end of the borrowing scale, dual-fuelling vehicles, telematics or fleet management are amongst some other trade related items that can be financed. The initiative is also expected to reduce the strain on company training budgets and staff turnover.

 

To date the LGCU has received £1.29 million from the UK government's Department of Business Innovation and Skills (BIS) through the UK Commission for Employment and Skills (UKCES), with an additional £600,000 provided by some major corporations also pledged. The LGCU is also looking to secure sponsorship from employers.

 

Commenting on the LGCU, Dr Ross Moloney, CEO of Skills for Logistics, said: “Following the global financial crisis of 2008 there is an important role for credit unions to play in terms of giving individuals and businesses access to finance for whatever they need. The Logistics Guild Credit Union will play a significant part in providing finance that will attract people to our industry as well as help develop and support our existing colleagues.”

 

“To take the LGCU forward, it is vital that the industry gets behind it and that we get employer engagement,” said Zoe Shaw, Managing Director of Promethion, financial advisers and sponsor of the initiative.

 

The UK government is keen to courage the growth of credit unions and is actively working with the trade body to promote saving and lending through these initiatives.

 

Image: Logistics Guild members can now access loans for various purposes.