Skip to content

Financing and insurance for last-mile delivery

Final delivery to homes and businesses, high stop counts, and lighter vehicles.

Short answer

Three things usually come first for a last-mile delivery company. One is paying for vans and box trucks, often with liftgates or other equipment for heavy items. Another is cash for payroll and fuel while retailers and shippers pay on terms. The third is coverage for drivers and helpers who go onto customers' property and sometimes into their homes. Vehicle weight decides which federal rules apply, and many last-mile trucks sit right around those lines. Providers and insurers decide what they offer, not us.

Which financing products do last-mile companies usually look at?

Last-mile companies run many smaller vehicles and many people, and they often bill retailers, furniture and appliance sellers, or shippers on terms. Fleet growth and payroll timing are the usual pressure points.

  • Equipment financing

    Cargo vans and box trucks, often with liftgates. Some providers are more comfortable with lighter units than others.

  • Line of credit

    Payroll and fuel while retail and shipper accounts pay on terms.

  • Factoring

    If you invoice retailers or shippers on terms, factoring turns those invoices into cash sooner. Compare fees and contract length.

  • Working capital

    Startup costs for a new contract, or a major repair. Add up the total you would repay before you sign.

  • SBA loans

    7(a) loans or microloans for vans, box trucks, and working capital, depending on the size of the need.

  • Fuel cards

    Vans and box trucks fueling at regular stations need broad acceptance and purchase controls. We do not currently route fuel card requests.

Accounts receivable financing can suit last-mile companies with steady, well-documented receivables from retailers. Asset-based lending tends to suit larger operations with contract receivables and a fleet to borrow against.

Apply Now

Which insurance lines do last-mile companies usually ask about?

High stop counts, residential streets, and work inside customers' homes create different risks than highway freight. Retail contracts often spell out the coverage they want. Policies vary, so read the declarations, definitions, and exclusions.

  • Primary auto liability

    High stop counts and residential streets. Retail contracts often ask for it even when federal minimums don't apply.

  • General liability

    Crews on customers' property and inside their homes. Ask how damage to a customer's home is treated.

  • Motor truck cargo

    Furniture, appliances, and other goods in your care. Read the limits and what the policy restricts.

  • Workers' compensation

    Drivers and helpers lifting heavy items. Requirements depend on your state and how workers are classified.

  • Physical damage

    Vans and box trucks in tight streets and docks. Check deductibles and how liftgates are valued.

  • Occupational accident

    For contract drivers who work without an employer's coverage.

Also worth a look: commercial umbrella if retail contracts set higher total limits, inland marine for dollies, tools, and installation equipment, and cyber if you rely on routing software and customer data.

Get a Quote

What makes last-mile delivery different?

Weight ratings decide the rules. In interstate commerce, a vehicle rated 10,001 pounds or more is a commercial motor vehicle under federal rules, and federal financial responsibility rules don't apply to a vehicle rated under 10,001 pounds, except for certain dangerous materials. A single truck rated 26,001 pounds or more is in Group B for licensing. Many box trucks sit between those lines, so check each vehicle's rating before you assume which rules apply.

A short-haul exception for non-CDL trucks. Drivers of property-carrying vehicles that don't require a commercial driver's license can be exempt from keeping records of duty status if they stay within a 150 air-mile radius, return to the work reporting location at the end of each tour, and don't drive after the 14th hour on duty on 5 days, or the 16th hour on 2 days, in any 7-day period. The carrier must keep time records for 6 months.

Inside the home is a different exposure. Delivering and setting up large items means crews inside customers' homes, carrying heavy goods past walls, floors, and stairs. Ask how your general liability policy treats damage to a customer's property and goods in your care.

Read the broader pages. Couriers covers per-delivery and platform work, small fleets covers adding vehicles and drivers, and Amazon DSPs covers that program.

Frequently asked questions

Do federal commercial vehicle rules apply to my box trucks?

In interstate commerce, a vehicle rated 10,001 pounds or more meets the federal definition of a commercial motor vehicle, which brings federal safety rules. Lighter vans fall outside that definition, though states can have their own rules. Check each vehicle's rating and your state's requirements.

Do my drivers need a CDL?

Not for most vans and many box trucks. A single vehicle rated 26,001 pounds or more is in Group B, which needs a commercial driver's license, and hazardous materials bring their own requirements. Check each truck's gross vehicle weight rating.

Do non-CDL delivery drivers have to keep logs?

Not if they qualify for the non-CDL short-haul exception: within a 150 air-mile radius, back to the work reporting location at the end of each tour, and no driving after the 14th hour on duty on 5 days, or the 16th hour on 2 days, in any 7-day period. The carrier keeps time records for 6 months instead.

What covers damage inside a customer's home?

Usually general liability, though policies vary in how they treat damage to property you are working on or goods in your care. Ask your agent to walk through a damaged-floor or broken-wall example.

Can I factor retail delivery invoices?

If you invoice retailers or shippers on terms, yes, those invoices can be factored, subject to the factor's review of your customers. If a platform pays you per delivery, there may be nothing to factor. See factoring.

Sources

Last reviewed: