Employers urged to back launch of logistics credit union28 January 2014

A new credit union for the logistics sector is being launched, offering cost-effective finance for individuals and businesses to fund training and vehicles – and logistics operators are being urged to back the initiative with sponsorship and promotion to their workforce.

The Logistics Guild Credit Union (LGCU) already has the support of Skills for Logistics, financial advisor Promethion and other industry partners, including the Freight Transport Association, as well as £1.29 million of backing from the government.

The LGCU will offer a range of products, including savings accounts, current accounts and ISAs, as well as loans. It is being set up as a not-for-profit financial cooperative, meaning any surplus will be used for the benefit of members, including payment of a dividend on their savings and training bursaries to help the sector.

Access to the LGCU is dependent on membership of the Logistics Guild, which is free of charge. Members will then have access to loans for training, learning and career development, as well as for general lifestyle purposes. It aims to support organisations from top to bottom, for example, by funding LGV licences, Driver CPC training or MBA study, as well as arranging loans for dual-fuel vehicles or telematics systems.

Major logistics businesses have already committed much of the £600,000 capital required. Further employer sponsorship is being sought. The LGCU also needs employers to back the scheme, with payroll deduction for employee loan repayments and promotion to the workforce. Employer sponsors can be represented on the LGCU board.

The LGCU is protected by the Financial Services Compensation Scheme and will be regulated by the Prudential Regulatory Authority, and will have a board comprising technical experts.

Dr Ross Moloney, CEO of Skills for Logistics, says: "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."

Zoe Shaw, managing director of Promethion, adds: "There is a clear need in the logistics sector for this exciting initiative. To take the LGCU forward, it is vital that the industry gets behind it and that we get employer engagement."

Click the link below for more information.

Author
Laura Cork

Related Websites
http://www.logisticsguild.com/

This material is protected by MA Business copyright
See Terms and Conditions.
One-off usage is permitted but bulk copying is not.
For multiple copies contact the sales team.