Industries
Trucking and Transportation Funding: Keeping Trucks Moving
Transportation businesses face a structural timing problem: fuel, maintenance and driver pay happen now, while broker and shipper settlements arrive in 30 to 60 days. Financing in this industry is mostly about compressing that cycle.
Freight factoring
Factoring is the dominant working-capital tool in trucking for good reason. Advance rates on freight invoices commonly reach 90 to 97 percent, funds arrive within a day of submitting the rate confirmation and bill of lading, and many factors add fuel-card and back-office services.
Truck and trailer financing
- New and used tractors, dry vans, reefers and flatbeds
- Terms typically 36 to 72 months matched to asset life
- Down payments from zero to 20 percent based on credit and unit age
- Title-secured, so approval leans on the asset as much as the borrower
Working capital for operations
Revenue-based advances cover fuel spikes, unexpected engine work, insurance premiums and DOT compliance costs. Because payments are daily or weekly, they should be sized against settled revenue rather than booked revenue.
Growing beyond owner-operator
Adding trucks means adding drivers, insurance and receivables at the same time. The safest sequence is to secure factoring first so receivables convert immediately, then finance the equipment, and only then take working capital for the ramp-up gap.
Frequently asked questions
- Can owner-operators qualify?
- Yes. Factoring and equipment financing are both widely available to single-truck operations with active authority.
- How long do I need my authority?
- Factors often work with new authority immediately; working capital products usually want three to six months of deposits.
- Are fuel advances available?
- Many factoring programs advance a portion of the load at pickup to cover fuel before delivery.