Business line of credit · Transport and logistics
Business line of credit for transport and logistics
Transport operators pay for fuel, tolls and drivers before customers pay on 30–60-day terms, so truck and trailer finance is usually paired with a working-capital facility.
How a business line of credit works for transport and logistics
A business line of credit is an approved limit you can draw on, repay and redraw as needed, paying interest only on the amount used. It suits businesses whose funding needs rise and fall through the year. For transport and logistics, the key is matching repayments to how money actually moves: A transport business pays for fuel before the customer pays, often waiting 30–60 days on freight invoices.
What transport and logistics typically fund
- Prime movers, rigid trucks and trailers
- Fuel and tolls between invoice payments
- Fleet expansion for new contracts
Business line of credit for transport and logistics: the numbers
| Typical amounts | $10,000 – $500,000 |
|---|---|
| Term | 6–24 months |
| Indicative rates | 11.5% – 24% p.a. |
| Repayments | Weekly or monthly minimums on the drawn balance |
| Speed | 1–3 business days |
| Documents transport and logistics usually need | ABN and operator accreditation · Bank statements and financials · Freight contracts for larger facilities |
Rates are indicative, change without notice and depend on the lender, product, asset, term and your credit profile at the time of application. They are not an offer of finance. Comparison rates, where shown, are true only for the example given.
Key terms
Truck finance
Truck finance is secured equipment finance for prime movers, rigid trucks and trailers, usually structured as a chattel mortgage over 3–7 years with an optional balloon.
What is a business line of credit?
A business line of credit is a revolving facility with a pre-approved limit. You borrow only what you need, pay interest only on the drawn balance and can redraw repaid funds without reapplying.
Line of credit vs business loan
A business loan pays a lump sum repaid on a fixed schedule; a line of credit is a flexible limit drawn as needed. Loans suit one-off purchases, lines of credit suit fluctuating working-capital needs.
Questions from transport and logistics
What documents will you need?
We start with a conversation about your business. To assess your options, lenders commonly need identification and recent business bank statements. Depending on the loan, they may also request BAS, financials or statements for existing debts. Your broker gives you a clear list for your situation.
How do transport operators finance trucks and trailers?
Prime movers, rigids and trailers are financed on chattel mortgages with terms up to seven years, usually with a balloon and often on low documentation for established operators, and a fleet facility lets trucks be added as contracts are won. Trailers can run on longer terms than trucks because they last longer.
How do transport businesses fund fuel, tolls and drivers before invoices are paid?
Invoice finance advances up to 80 to 90 per cent of freight invoices within a day or two so fuel, tolls and wages are covered while customers take 30 to 60 days, and a line of credit fills the gaps. Fuel cards with extended terms help too. A broker sizes the facility to your monthly billings.
Can an owner-driver get truck finance?
Yes. Owner-drivers are financed on the strength of a carrier agreement or subcontract, driving history and a clean credit file, with new ABNs usually needing a deposit of 10 to 20 per cent and established operators often approved with no deposit. A used truck within age limits keeps the deposit small.
Can transport operators refinance ATO debt or high-rate loans?
Yes. Tax debt and expensive short-term loans can be refinanced into a single facility secured against the fleet, lowering the repayment and protecting the business from ATO action. Lenders assess the fleet’s equity and recent trading, and a broker knows which lenders accept ATO debt.