Industry
Transportation companies face relentless cash demands — weekly payroll, daily fuel, insurance premiums, and maintenance — while brokers and shippers pay on 30- to 45-day terms. We structure facilities to close that gap.
Capital pressures
Transportation is one of the most cash-intensive industries. Costs are daily, obligations are weekly, and revenue arrives monthly. These are the pressure points that create capital needs.
Drivers expect weekly or biweekly pay regardless of when your customers settle invoices. A growing fleet means growing payroll — and growing risk if collections slow down.
Fuel is the single largest variable cost for most carriers. Diesel prices shift weekly, and fuel card balances compound quickly across a fleet of 20, 50, or 200 trucks.
Commercial auto insurance premiums, DOT compliance costs, and regulatory requirements are non-negotiable. Lapsing coverage means trucks sitting idle and contracts at risk.
Adding trucks means adding revenue capacity — but the capital required for new or used equipment, plates, insurance, and onboarding happens months before that capacity generates income.
How we evaluate
A carrier with $6M in revenue and 80 trucks has a very different capital profile than a 3PL with the same revenue but asset-light operations. We evaluate your actual operating model — fleet size, lane mix, customer base, fuel spend, and payment patterns — to determine the right facility.
Many transportation companies start with factoring, and factoring works well to a point. But as you grow, the economics of factoring every load can erode margin. We help carriers evaluate when a line of credit, ABL facility, or term loan makes more sense than continuing to factor. See how one fleet operator eliminated seasonal payroll stress with a $2.1M facility.
Beyond factoring
Factoring is a strong entry point for many carriers — it converts receivables to cash quickly. But it has natural limitations as your fleet scales.
Factoring fees on every load add up. A carrier running 200 loads per week at 2—3% per invoice is paying meaningful capital costs that a revolving facility could reduce.
Many factoring arrangements require full-ledger assignment. As you grow, the ability to selectively finance — choosing which receivables to advance — becomes more valuable.
Mature carriers often benefit from a combination — a line of credit for working capital, equipment financing for fleet expansion, and factoring only for specific accounts or lanes.
Common facility structures
Convert delivered-load invoices to same-day or next-day cash. A foundational tool for carriers managing broker payment delays.
Flexible draw-and-repay facility for payroll, fuel, insurance premiums, and other recurring obligations that don't align with collection timing.
Dedicated truck and trailer financing structured around the useful life and residual value of commercial vehicles.
For larger fleets with meaningful receivables and equipment collateral — borrowing-base facilities that scale with your operation.
Typical profile
Owner-operators scaling to mid-size fleets, regional carriers, and logistics companies with consistent freight volume and growing capacity.
Hauling for brokers, 3PLs, or direct shippers on standard payment terms — creating a structural gap between delivery and collection.
Driver payroll, fuel, insurance, and maintenance create non-negotiable weekly cash obligations that don't pause when collections slow.
For the operational detail — how a line is sized against turnover, where factoring beats quick pay, and what fuel and settlement timing does to a weekly cycle — see working capital and factoring for trucking companies. A worked example is in the $2.1M liquidity facility for a 220-driver fleet.