Quick answer
Transport and logistics business loans fund trucks, trailers, forklifts, fuel, wages and the long wait for customers to pay. Banks often treat transport as higher risk, so asset finance on the vehicle, invoice finance against freight invoices and property-secured loans are the most common funding routes. Contract concentration and fuel costs are key lender questions.
Key points
- Asset finance suits trucks, trailers and forklifts
- Invoice finance helps when customers pay on long terms
- Lenders watch contract concentration closely
- Property security supports fleet expansion or tax arrears
Constant costs, delayed income
Transport businesses carry heavy daily costs: fuel, tolls, wages, maintenance, registration, insurance. Customers, meanwhile, often pay on 30 to 60 day terms. Growth makes it harder, because each new contract means more trucks and more drivers before the first invoice is paid.
Typical funding needs
| Need | Typical option |
|---|---|
| Trucks, trailers, forklifts | Equipment finance |
| Fuel and wages before customers pay | Invoice finance or line of credit |
| Major repairs | Short-term unsecured loan |
| Fleet expansion for a new contract | Property-secured loan plus asset finance |
| Tax arrears | Unsecured or property-secured tax debt loan |
What lenders focus on
- Customer concentration: how much revenue depends on one or two contracts.
- Contract terms: length, notice periods and pricing reviews.
- Fleet condition: age and maintenance records.
- Compliance: licences, accreditation and payroll obligations.
- Bank statements: fuel, wage and toll patterns versus deposits.
When a contract ends
Losing a major contract is one of the biggest risks in transport. Our page on losing a major client covers how to fund the gap while you replace the work.
An illustrative example
A Sydney logistics operator won a warehousing and delivery contract that required two more trucks and extra staff. The customer paid on 45-day terms. Asset finance funded the trucks, and an invoice discounting facility covered wages and fuel while invoices were outstanding.
Larger moves and property
For fleet expansion, depot purchases or clearing larger tax debts, property-secured loans between $20k and $5m provide more room, and no pre-approval valuation is required and interest that can be prepaid or added to the loan.
Mistakes we see in transport funding
Buying trucks on the strength of one contract with a short notice period is the most common risk. If the contract ends, the repayments continue. Match asset finance terms to the security of your contracts and keep a spread of customers. Another is underestimating maintenance and tyre costs on older vehicles. Build these into your pricing and keep a buffer. Finally, watch fuel costs: contracts without fuel adjustment clauses can quickly erode margins when prices rise.
Keep the wheels turning
Use the 60-second form and tell us about your fleet, contracts and what you need. There is no credit check at enquiry, an expert looks it over, and we keep it confidential. Fund your fleet.
Frequently asked questions
Can I finance a used truck?
Often, yes, depending on age, kilometres and condition. Private sales need extra checks.
My biggest customer is most of my revenue. Is that a problem?
Lenders see it as a risk. Showing contract terms and a spread of smaller customers helps.
Can I fund fuel and wages while waiting on invoices?
Yes. Invoice finance and lines of credit are built for this.
Do lenders consider owner-drivers?
Yes. Owner-drivers often use equipment finance and bank-statement-based loans.
Prefer to start now? Enquire here
About 60 seconds. No credit check when you first enquire, and a person who handles unusual deals calls you back.