Financial Requirements to Apply for an O-Licence
The requirements for a standard national and international licence (not restricted) demand that the applicant has sufficient funds to start up and run the business properly. As well as assets such as vehicles and premises, there must be enough working capital (such as cash, loan facilities or other assets which can quickly be turned into cash) to cover all the expenses which are likely to arise before any money is earned to meet them.
Applicants for standard national and international licences (not restricted) must show that they have available reserves of £7,850 for the first vehicle and £4,350 for each subsequent vehicle authorised. The word “authorised” is important. Operators must have these reserves for both vehicles in their possession and those on the margin.
Your available loans, credit cards and overdraft facilities also count towards these amounts, so it’s not only cash on your account. Money and credit available to your partners also count for limited companies and partnerships.
When you apply, these amounts must have been available to you during a 28-day period, the last date of which must not be more than 2 months from the date of receipt of the application.
This is how much you need to have for the number of vehicles you are applying for:
- 1 vehicle = £7,950
- 2 vehicles = £12,350
- 3 vehicles = £16,700
- 4 vehicles = £21,100
- 5 vehicles = £25,500
- 10 vehicles = £47,550
- 20 vehicles = £91,550
The Traffic Commissioner changes the numbers above slightly from time to time depending on the euro/pound exchange rate but they usually stay within the same range. You can find the current exact numbers in the form GV79B also called “Annex B: current financial levels”.