Finance by industry
Transport and logistics finance
Trucks, trailers and fuel cost money every day, while customers often pay weeks later. Here is how finance is commonly used to bridge that.
How money moves in transport and logistics
Most of the money in a transport business goes into vehicles, fuel, tyres, repairs and drivers. Many customers pay on account, so the work is done well before the money comes in.
Finance is often used to spread the cost of vehicles over the years they earn income, and to free up cash that is tied up in unpaid invoices.
Finance commonly used
- Equipment or vehicle finance: spreads the cost of trucks, prime movers, trailers and vans over a term, with the vehicle usually as security.
- Chattel mortgage, lease or hire purchase: different ways to own or use a vehicle; they can differ in ownership, tax treatment and what happens at the end.
- Invoice finance: an advance against invoices your customers have not paid yet.
- Line of credit or overdraft: a limit to draw on for fuel, repairs and other day-to-day costs.
Documents usually asked for
- Recent business financial statements or tax returns
- Business bank statements
- Quotes or details of the vehicles you want (make, model, age, seller)
- Customer contracts and a list of unpaid invoices
- Details of the vehicles and loans you already have
- Photo ID for the owners or directors
Every lender decides what it needs, so you may be asked for more or less. The document checklist builds a list for your type of finance and country.
Free tools that help
They work in your browser with your own numbers. Nothing is sent or saved.
- Fleet finance calculator repayments for several vehicles on one rate and term.
- Vehicle cost per km what each kilometre really costs you.
- Lease or buy equipment? cash, a loan or a lease for equipment, side by side.
- Invoice finance estimator cash now, cash later and the cost, from your own quote.
- Invoice ageing helper group unpaid invoices by how long they have been waiting.
Good to know
- Words used on this page: chattel mortgage, lease, hire purchase, balloon payment, invoice finance, working capital.
- This is general information about how finance is often used in transport and logistics. It is not financial, legal or tax advice, and it is not a promise that any lender will approve an application.
- Read Before you borrow for the questions to ask any lender, and see other industries.
Pick up where you left off
Ready to talk about your finance?
Tell us what you need and our team will get back to you.