Bridge Taxi Finance backed by Old Mutual has run into financial trouble, the bad news has been reported to the shareholders of Old Mutual as contained in its quarterly financial
statements.
Old Mutual has reported a one-off R155m impairment of Bridge Taxi Finance secured loan as a result of worsening credit losses.
When Bridge Taxi Finance entered the taxi financing business it was welcomed by the taxi industry as an alternative independent financing house to legacy financial institutions like ABSA, Standard Bank and Wes-Bank with an aim to service the niche taxi operator’s market.
With the current economic challenges facing the taxi industry, it remains to be seen as to how committed Old Mutual management is to serving taxi operators by continuing to stick it out with Bridge Taxi Finance to avoid another collapse of a taxi financing house similar to SA Taxi Finance as the industry’s challenges persist.
Last year Triodos Microfinance Fund and Triodos Fair Share Fund have provided an additional R170 million loans to Bridge Taxi Finance. According to the company the loan aims to “provide affordable credit facilities to entrepreneurs in the minibus taxi industry. The loan supports Bridge Taxi Finance in its growth ambition.”
