Case Study: £543k of Volvo FH 500 Tractor Unit Finance for SK Distribution
Posted: 26 October 2026
SK Distribution, the Buxton-based haulage company, is growing fast, and Boost Finance has funded four brand-new Volvo FH 500 tractor units for the business across three deals since 2025, worth more than £540,000 plus VAT. Every truck was funded at a Tier 1 rate with a 10% deposit and a three-month VAT deferral, helping SK Distribution keep a modern fleet without putting pressure on cash flow.
At a glance
- Customer: SK Distribution, pallet delivery and road haulage, Harpur Hill, Buxton, Derbyshire
- Vehicles: 4 × brand-new Volvo FH 500 tractor units
- Total value: £543,475 plus VAT across three deals
- Finance: Hire purchase over 60 months on every truck
- Rates: Tier 1 rates on every deal
- Deposit: 10% deposit with a three-month VAT deferral
- Relationship: Since 2025, Boost has also funded two Renault Master vans and seven yard offices for SK Distribution
About SK Distribution
Founded in 2006, SK Distribution is a transport and logistics company based at Harpur Hill Business Park in Buxton, Derbyshire, just south of Manchester. It specialises in express pallet delivery across the UK and Ireland, along with part loads and full trailer loads of up to 44 tonnes.
SK Distribution is an accredited member of two of the UK’s leading pallet networks, Palletways (since 2006) and Pall-Ex (since 2021), giving its customers access to more than 270 depots nationwide. It moves freight for construction, manufacturing, retail, agriculture, ecommerce and engineering businesses, and runs a 100% Euro 6 fleet.
Boost Finance was introduced to SK Distribution in 2025. Since then the business has continued to expand, recently moving to a bigger yard to keep up with demand.
The challenge: growing the fleet without tying up cash
Demand for SK Distribution’s services has been rising, and the business needed more trucks on the road. It also wanted to keep its fleet modern and 100% Euro 6: newer trucks are cleaner, more reliable, more fuel-efficient and spend less time off the road, which matters when customers are relying on next-day pallet deliveries.
SK Distribution’s preferred truck is the Volvo FH. The team values its reliability and the efficient repair and maintenance support that comes with it, which means less downtime for a business where every truck needs to be working.
New tractor units cost around £135,000 each plus VAT. Buying them outright, or paying the VAT upfront, would have taken a large amount of cash out of the business at exactly the time it was investing in growth.
How Boost structured the Volvo FH finance
We have funded SK Distribution’s Volvo FH 500s in three deals as the fleet has grown:
- March 2025: 2 × new Volvo FH 500 tractor units at £136,000 each plus VAT
- July 2025: 1 × new Volvo FH 500 at £133,975 plus VAT
- May 2026: 1 × new Volvo FH 500 at £137,500 plus VAT
Each truck was funded on hire purchase over 60 months, so SK Distribution owns it outright at the end of the term. Every deal followed the same approach:
- Tier 1 rates: we placed every deal with Tier 1 lenders, securing the most competitive rates available at the time
- A 10% deposit: keeping most of the purchase price in the business
- A three-month VAT deferral: the VAT on each truck didn’t have to be paid on day one. SK Distribution had three months to pay it, which gave time to reclaim it through the VAT return first
Because we understood the business after the first deal, each new truck was quicker and easier to arrange, so SK Distribution could order with confidence as new work came in.
The result: a modern Volvo fleet, ready for growth
- Four new Volvo FH 500s on the road, adding capacity as demand grew and keeping the fleet 100% Euro 6
- Lower downtime, thanks to new, reliable trucks with strong manufacturer support
- Healthier cash flow, with low deposits and deferred VAT
- A trusted finance partner SK Distribution keeps coming back to, for vans and yard offices as well as trucks
“We have used Boost Asset Finance to help us with a number of recent acquisitions. Their service has been excellent, very attentive and sharp with their quotations. I highly recommend them to anyone looking for finance.”
Vic Smith, SK Distribution
Everything we’ve funded for SK Distribution
- 4 × Volvo FH 500 tractor units (2025–2026): £543,475 plus VAT
- 2 × Renault Master L3 curtainside vans (July 2026): £91,170 plus VAT, sourced by Boost for less than the original supplier quote
- 7 × modular yard offices (September 2026): £80,844 plus VAT, on hire purchase for the new, larger yard
That’s more than £715,000 plus VAT of funding to support one growing haulier.
Need finance for HGVs or tractor units?
Whether you need one truck or a whole fleet, Boost Finance arranges commercial vehicle finance for hauliers and transport and logistics businesses, with competitive rates, low deposits and VAT deferral where available. Read how we funded UKAP’s new Volvo FMX grab lorry and tippers and Fast Pace Logistics’ £105k GGS loan.
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