01Trucking and logistics
Funding for trucking and logistics.
Minimum average deposits
Fuel, repairs and driver pay leave the account long before a load settles. Most funding in this sector exists to cover that distance. The single most important thing about a trucking file, though, is whether the receivables have already been sold to a factoring company.
02How the money arrives
What your statements actually show.
Underwriting reads your bank account, not your industry. Knowing how revenue reaches the account in this sector is what makes the difference between a file that is understood and one that is misread.
- Revenue shape
- Invoiced to brokers and shippers on net terms. Card volume is negligible. A large share of the sector factors its invoices, in which case payment arrives from the factor, net of fees and any reserve, rather than from the customer.
- How it reads to a funder
- Lumpy and, where factoring is in place, systematically understated. The bank account shows the advance rate net of fees, not the gross invoice, so a business can look considerably smaller than it trades. An underwriter who does not know factoring is in place reads the wrong number.
- Seasonality
- Freight runs in cycles rather than a simple calendar: produce seasons, retail restock, and a post-holiday slowdown most carriers know by feel. Fuel price movements hit margin faster here than in any other sector on this list.
03What it funds
What the money is usually for.
Not a list of everything money can do. These are the things owners in this sector actually come to us for.
- Fuel and tolls across a stretch where settlements are behind the road
- Unplanned repairs, where a truck off the road stops its own revenue
- Driver pay between settlement cycles
- Adding a tractor, trailer or reefer to take on more lanes
- Insurance down payments, which fall due annually and land heavily
Amounts run from $15,000 to $20,000,000, sized against what the account takes in rather than against what the money is for.
04Strength
What strengthens the file here.
The general list is on the qualification page. These are the things that carry particular weight in this sector.
Reads well
- Authority and insurance current, which is checked early and stops files that would otherwise be fine
- Steady settlement history from established brokers, rather than one-off spot work
- Equipment owned outright, or with real equity in it
- Where factoring is in place, the agreement itself, so gross revenue can be seen rather than inferred
05Friction
What complicates it.
None of these is an automatic no. Each one changes what is available, and each one is better raised by you at the start than found in the statements later.
Factoring, which is the first question and often the last
If invoices are already sold to a factor, the receivables an advance would be purchasing have been assigned to somebody else. That is not always fatal, but it has to be established before anything is arranged, and the factoring agreement usually decides the answer. Raise it at the start: it is the single most common reason a trucking file stops late instead of early.
Statements that understate the business
Net-of-fee deposits from a factor make a healthy carrier look marginal. Send the agreement alongside the statements so the file is read at gross rather than at the advance rate.
Equipment already financed
Most tractors carry existing finance and an accompanying lien, which limits what can be secured against them. Real equity in owned equipment changes what is available; a full note against it usually does not.
A fact that arrives with an explanation is worked with. The same fact found in the statements is a surprise, and surprises cost you terms.
06Which product fits
Not every sector wants the same instrument.
We arrange four. These are the ones that tend to suit trucking and logistics, and why. Which one is right for you is decided on your file, not on your sector.
Quoted per file
Asset-backed capital
Tractors, trailers and reefers are genuine security, and where there is equity they reach further than the statements do.
How it worksQuoted per file
Bridge financing
Fits a specific settlement gap with a date on it rather than a general shortfall.
How it worksRates published
Merchant cash advance
Possible where invoices are not factored and settlements are steady. Where they are factored, the factoring agreement comes first.
How it worksFind out where your file stands.
The application takes about fifteen minutes and asks for 3–6 months of business bank statements. If something on this page describes your business, say so at the start: it is the difference between a file that is read correctly and one that is read twice.