Light commercials, from car-derived vans to 3.5-tonne panel vans, account for around a quarter of its fleet volume.

All are on full contract hire and most are specialist vans, such as welfare, which by law require bespoke seating, catering and toilet facilities.

They are more closely aligned to heavy trucks in the way they need to be managed.

“If it’s a specialist piece of kit where the residual value plays a big part, we are interested,” Paterson said.

“We will do car-derived and vans for clients where we have their heavy truck deal.

"But we wouldn’t do standalone deals.

Paterson also has no interest in moving into cars.

If a customer operates cars as well as heavy trucks, that element is outsourced to one of Asset Alliance’s strategic partners, which include Zenith, SG Fleet and Filton.

He is targeting 1,000 assets by the end of the year, worth £15 million of lending, rising to 4,000 in year three for a funding line of up to £50m. Fleets running 10-150 heavy goods vehicles are the prime targets.

“We don’t want to grow much more than that,” Paterson told Fleet News.

In March this year, the company secured additional funds of £25m after concluding an investment deal with CS Capital Partners, a fund managed by Cabot Square Capital.

The money is being invested in organic growth, although Paterson doesn’t rule out acquisition.

Efficiency needs to improve

Funding remains tight with the major banks continuing to retrench, according to Willie Paterson. He doesn’t see it easing for “at least” the next couple of years.

"We are far from being out of the commercial recession and I believe lending will remain tight,” he says.

“Businesses will have to improve their efficiency and increase their offering to customers.

But this is good for the industry: the larger and more efficient businesses will grow and acquire.”

However, the key point is efficiency, rather than size. Paterson believes there is a place for both larger organisations and smaller niche operators.

“They will do well at the expense of those that are sluggish and slow to react to customers’ needs,” he says. “In recession, the pace of change accelerates.”

Private equity is providing Asset Alliance with its source of funds but this presents its own challenges.

“You need the skills set to manage the treasury and finance function internally and be of a size to make the returns,” Paterson says.