Transport & Haulage
Get paid sooner and keep those vehicles on the road
Invoice Finance for Transport Businesses
Cash flow is crucial in keeping your vehicles on the road. Paying for fuel, vehicle maintenance costs and drivers wages can always impact your cash flow. Even more so if you need to wait 30,60 or even 90 days for your invoices to be paid.
Having an invoice finance facility would mean that you will no longer have to wait for your clients to pay the invoice because you will have the working capital for these much-needed expenses to keep vehicles on the road. Releasing the cash already tied up in your sales ledger could also allow you to purchase a new vehicle, or you could use asset finance.
Benefits of Invoice Finance in the Transport industry
Keep your vehicles on the road
In the world of transport, it is crucial for any business to keep the vehicles on the road. Invoice finance allows you to have that working capital required to pay for things like fuel, drivers wages and vehicle maintenance to keep those wheels turning.
Business growth
Invoice finance allows a transport company to be able to afford to take on more work, as you no longer have to wait 30,60 or even 90 days to get paid by your clients before you take on more work.
Flexible
Some transport and haulage business are seasonal. Invoice finance allow you to release cash in peak seasons for your sales invoices. Unlike a business loan where you would need to pay back interest whether you are busy or not.
Win more work
With an invoice finance facility, you now have the ability to offer extended payment terms of up to 120 days. This could be the difference of a client preferring your services over a competitors.
Improve supplier relationships
Having a steady cash flow means that you can pay key suppliers on time such as fuel, subcontractors and mechanics.
Discount from suppliers
If you can play your suppliers sooner, you can often get a discount from them.
Increase vehicle fleet
If you are able to take on more work, you might need to take on more vehicles. Releasing up to 90% of your sales ledger can be a very nice cash injection and allow you to pay for new vehicles. You might also consider asset finance to take on more vehicles. A lot of invoice finance lenders also provide asset finance.
How does Invoice Finance work for a Transport business?
Send your invoices
Receive up to 90% of the invoice value
Your business uses the money
Your customer pays
You receive the remaining 10%
How do I get an Invoice Finance facility?
This is where Contact Business Finance can help with our knowledge in the world of Invoice Finance. We simply put you in contact with the most suitable lender that understands the highs and lows of the transport industry. We will compare the market for you at no cost, make you feel comfortable with the facility and then introduce you to a lender that is the best fit for you and your transport business.
And it’s not just Invoice Finance we can help with – we can look at business loans, asset finance, property finance and much more. We often help our transport clients purchase new vehicles and buy a new yard.
Frequently Asked Questions
How can Invoice Finance help me grow my Transport business?
Invoice finance helps transport companies grow by allowing them the cash available to keep vehicles on the road. Having a steady cashflow enables a transport business to have the cash available to pay for fuel, drivers wages and of course those unexpected mechanical faults with vehicles. It also gives you the ability to take on more work, more vehicles and more drivers. As long as you have the work, you can grow to the capacity you wish to.
What type of Invoice Finance would be best for my Transport business?
This depends on your requirements. For example, if you also wanted credit control to be handled internally then Invoice Discounting or CHOCCS would be best. If you wished to outsource credit control then Factoring would be more suitable as the lender can chase payments which can save you time and money. Selective Invoice Finance is a great alternative if you only want to put through certain invoices.
Would Invoice Finance allow me to own more vehicles?
Invoice finance releases cash into your business. Therefore, with more cash available you have the ability to purchase more vehicles. A lot of invoice finance lenders also offer asset finance which is specifically designed to help a business purchase assets. For a transport business, this can be used to purchase new or used vehicles to extend your fleet.
Can Invoice Finance lenders work with my clients on haulage exchange?
Some lenders are still able to work with your company if you use the haulage exchange platform. We work with lenders that understand the need to ensure your vehicles are not coming back empty.
Can Invoice Finance lenders work with my clients on courier exchange?
Invoice finance lenders can work with courier exchange. However, the majority of lenders do not like courier exchange for a number of reasons. The main reason is often the quality of courier business you can find on the platform. Invoice finance lenders like to work with creditworthy clients that are more likely to pay the invoice they are lending against.
If I own a small Transport company, am I still eligible for Invoice Finance?
Invoice finance is suitable for companies of any size as ling as the invoices are raised to other businesses. We can work with new starts and well established businesses.