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Financing for people who move freight

Nine ways trucking and logistics businesses pay for trucks, cover gaps, and wait out slow invoices, explained in plain terms.

Short answer

Trucking and logistics businesses use a handful of financing products. Equipment financing pays for trucks, trailers, and shop equipment. Working capital, lines of credit, and merchant cash advances cover cash gaps. Factoring, accounts receivable financing, and asset-based lending turn unpaid freight invoices into cash. SBA loans and fuel cards fill in the rest. BreadRoute explains each one and sends financing requests to third-party providers, who make their own decisions on terms.

What kinds of financing do trucking and logistics businesses use?

If you run trucks, dispatch loads, or fix and tow the ones that break, your money moves on a different clock than your costs. Fuel, insurance, payroll, and repairs are due now. Freight pays 30 days later, sometimes more. Trucks cost more than most small businesses spend on any single asset. And a new authority starts with no history to point to.

The products below are built for different versions of that problem. Some pay for a unit. Some cover a gap. Some turn invoices into cash. Each has trade-offs in cost, speed, paperwork, and risk, and the cheapest-looking offer is not always the cheapest once you read the fees.

We explain how each one works, what affects cost and eligibility, and what to have ready. We do not lend, set rates, or make credit decisions. Financing requests go to third-party providers, who decide on terms.

The financing products, in plain terms

  • Equipment financing

    Loans and leases that pay for tractors, trailers, box trucks, cargo vans, wreckers, and shop equipment, with the unit as collateral.

    For the units that earn your revenue, whether you are buying your first truck or adding to a fleet.

  • Working capital

    Cash for repairs, fuel, payroll, and growth, repaid from future revenue as a term loan, short-term loan, or advance.

    For one-time costs and gaps, with a cost that is easy to misread until you annualize it.

  • Factoring

    Selling your freight invoices to a factor for cash now, with the rest paid, minus fees, when your customer pays.

    For carriers waiting 30 days or more on pay, and for anyone who wants to hand off collections. Recourse terms matter.

  • Line of credit

    A limit you can draw on, repay, and draw on again, with interest on what you use.

    For gaps that come back every month, such as fuel, repairs, and uneven pay.

  • Accounts receivable financing

    Borrowing against your open invoices while you keep the customer relationship. Also called invoice discounting.

    For brokers and established carriers with steady invoices who want to keep collections in-house.

  • Asset-based lending

    A larger secured loan or line that moves with the value of your receivables, equipment, or other assets.

    For established fleets and brokers with a big, steady book who need more than a standard line.

  • SBA loans

    Loans made by banks and other lenders, with part guaranteed by the SBA. The 7(a) program can fund trucks and working capital. 504 is for major fixed assets such as terminals, yards, and shops, and is generally not used for trucks.

    For operators who can trade time and paperwork for longer terms.

  • Merchant cash advance

    Cash up front, repaid from a share of future sales or deposits, usually by daily or weekly withdrawals. Generally structured as a purchase of future receivables, not as a loan.

    For short-term needs when other options are closed. Its cost can be high once stated as an annual rate.

  • Fuel cards

    Cards for fuel purchases, with per-driver controls and records.

    For operations that want tighter fuel tracking and spend control. We do not currently route requests for fuel cards.

Which one do I need?

Start with the problem, not the product name.

  • You need a truck, trailer, or shop equipment. Start with equipment financing. It is built for a specific unit, with the unit as collateral and a term matched to it.
  • Your customers take 30 days or more to pay. Compare factoring with accounts receivable financing. Factoring sells the invoice and often hands off collections. AR financing borrows against it and usually leaves you collecting and responsible for repayment.
  • The same gap shows up every month. A line of credit fits repeating needs better than a lump sum.
  • You have a one-time cost or a growth step. Working capital in a lump sum can fit. Convert any offer to an annual figure first.
  • You have a large, steady book of invoices, plus equipment, and want more room. Ask about asset-based lending.
  • You are buying a terminal, yard, or shop, or you can wait for longer terms. Read about SBA loans. Expect more paperwork and more time than with other products.
  • Everything else is closed and you need cash soon. A merchant cash advance exists, but its cost on an annual basis can be high. Work out the total cost first.
  • You want to control fuel spend. See fuel cards.

By operation. New-authority owner-operators often start with equipment financing or factoring, though terms vary and no one can promise an offer. Small fleets and OTR operators often use a mix, such as equipment financing plus factoring or a line. Couriers tend to need smaller equipment loans and short-term working capital. Brokers and dispatchers usually care about receivables products, not tractors. Towing and repair shops look at equipment financing for wreckers and shop equipment, and at receivables products for slow commercial accounts. See who we serve.

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Frequently asked questions

Are you a lender or an insurance agency?

Neither. BreadRoute is not a lender and not a licensed insurance agency. We explain financing and insurance for trucking businesses and route requests. Financing requests go to third-party providers, who make their own decisions on terms. Insurance requests go to licensed insurance partners, who handle any coverage options.

Can I get financing with new authority or less than a year in business?

Sometimes. Some providers work with new authorities or businesses under a year old, and others want more time first. What usually matters is time under your own authority, revenue or invoices, credit history, down payment, and the unit itself. No one can promise an offer, but a request lets providers tell you what, if anything, they can do.

How does BreadRoute make money?

Financing providers and our licensed insurance partners may pay BreadRoute a referral fee or commission when we pass along a request or when a deal closes. You do not pay us to send one. That compensation may affect which partners we recommend and where offers appear. Any fees on a financing deal are the provider's own and separate. See our disclosures.

What do providers usually ask to see?

It varies by provider and product. Common asks: your MC or DOT number and how long your authority has been active, recent business bank statements, invoices or a list of the brokers and shippers who pay you (for receivables products), details on the truck or trailer, and basic business and owner information.

How do I avoid financing scams?

Be wary of anyone who asks for a fee before making an offer, pressures you to sign right away, or will not put terms in writing. The FTC says an up-front fee collected before a loan is granted is a cue to walk away. Read the contract and the full cost before you sign.

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