What logistics and freight companies use funding for
- Trucks, trailers, and fleet equipment
- Fuel, maintenance, and tires
- Driver and dispatcher payroll
- Warehouse space and material-handling gear
- Bridging broker and shipper receivables
How much can you borrow?
Logistics companies typically borrow $25,000 to $750,000 — equipment/vehicle financing for the fleet, freight-factoring and A/R financing to bridge slow-paying loads.
The cash-flow challenge for logistics and freight companies
Fuel and payroll are due immediately, but brokers and shippers commonly pay 30 to 60 days after delivery. Fleet growth multiplies both the asset cost and the receivable gap at the same time.
Freight factoring turns delivered-load invoices into same-week cash — often the single most effective cash-flow tool in trucking and logistics.
Best financing options
Trucks and trailers fit equipment/vehicle financing. To get paid on delivered freight now, A/R financing (freight factoring) or a line of credit bridges the gap, with working capital for growth.
Before you sign any offer, run the numbers through our business loan & MCA calculator to see the real APR and total payback.
What lenders check for logistics companies
- Operating authority: an active USDOT number and, for for-hire carriers and brokers, operating authority registered with the Federal Motor Carrier Safety Administration. Time under your own authority matters.
- Customer concentration: how much of your revenue comes from one broker or shipper.
- Receivables aging: how quickly brokers and shippers actually pay.
- Equipment: age, mileage, and condition of trucks and trailers.
- Insurance and a clean safety record.
- Bank statements: deposit consistency and fuel spend; see what underwriters look for in bank statements.
Logistics funding options compared
| Option | Best for | What's reviewed |
|---|---|---|
| Equipment financing | Trucks, trailers, forklifts | The equipment's value, your credit, down payment |
| Freight factoring | Getting paid on delivered loads now | Your brokers' and shippers' credit |
| Line of credit | Recurring fuel and payroll gaps | Revenue, time in business, credit |
| Working capital / revenue-based | Fast cash for repairs or growth | Deposits and bank statement health |
| SBA 7(a) or 504 | Warehouses, terminals, larger expansions | Full financials, collateral, patience |
Funding a new logistics company
New carriers and brokers have the fewest options, but not none. Freight factoring is often available early because it depends mainly on your customers' credit rather than your history. Equipment financing for new ventures usually requires a larger down payment. For other startup paths, see startup funding with no revenue.
Fund your logistics company
Fleet, fuel, and payroll — get paid on freight without the 30–60 day wait.
Frequently Asked Questions
What is freight factoring?
Freight factoring (a form of A/R financing) advances most of a delivered-load invoice immediately, so fuel and driver pay are covered while the broker's net-30/60 payment is pending.
How do logistics companies finance trucks?
Trucks and trailers are financed as equipment over their useful life, with the vehicle as collateral to keep payments aligned with earnings.
Can a new logistics or trucking company get funding?
Yes, though options are narrower. Freight factoring is often available early because it relies on your brokers' and shippers' credit, and equipment financing is possible with a larger down payment.
What documents do logistics lenders ask for?
Typically recent business bank statements, your USDOT and operating authority details, an equipment list, a receivables aging report, proof of insurance, and a government ID. SBA and bank loans add tax returns and financial statements.