Invoice financing for haulage & transport companies — how 30–90 day terms work

Summary: If your transport or haulage business issues invoices that customers pay on 30–90 day terms, invoice financing can turn those unpaid invoices into immediate working capital. Typical advances range from 70–90% of the invoice value and funds are usually released within hours to 48 hours after approval. Invoice finance comes mainly as factoring (disclosed, with collections handled) or invoice discounting (confidential, you keep collections). UK Business Loans is not a lender and does not provide financial advice — we introduce your business to suitable finance brokers and lenders. Completing our enquiry form is not a loan application; it helps us match you to providers for a free, no‑obligation quote. Start with a Free Eligibility Check at any time: Get Quote Now.

Quick summary: invoice financing in plain English

Invoice financing lets you unlock cash tied up in unpaid invoices. Instead of waiting 30, 60 or 90 days for a customer to pay, a specialist funder advances most of the invoice value so you get working capital now.

• Invoice factoring: the funder buys or advances against your invoices and usually handles collections. Customers may be notified.
• Invoice discounting (confidential): you borrow against invoices but retain responsibility for collections; customers usually don’t know.

For haulage, 30–90 day terms are common for larger shippers and retailers. Invoice finance bridges the payment gap so you can keep fuel tanks full, pay drivers, cover maintenance and accept bigger contracts. Ready to see if you qualify? Free Eligibility Check.

Why haulage & transport businesses use invoice finance

Haulage and transport are cash‑intensive: fuel, tyres, servicing, driver wages and insurance are ongoing costs. Long payment terms create cashflow pressure that can limit bidding on bigger jobs or replacing vehicles.

• Eliminates long waits for payment — improves day‑to‑day liquidity.
• Enables timely payment of drivers, sub‑contractors and suppliers.
• Helps cover seasonal spikes (e.g. peak retail or holiday demand).
• Allows you to take on larger contracts without tying up reserves.
• Avoids deteriorating credit lines/overdraft usage and associated penalties.

How 30–90 day invoice financing works — step-by-step

1. Complete the job and issue an invoice. The invoice should show job reference, delivery date, supplier and payment terms (e.g. 60 days).
2. Submit the invoice to the finance provider or broker. This can usually be done via an online portal, email or through your broker. UK Business Loans can connect you to specialist partners quickly.
3. Credit checks & approval. The funder checks the creditworthiness of the debtor (your customer). Approval depends largely on debtor quality.
4. Advance released. On approval you typically receive 70–90% of the invoice value — often within hours, or up to 24–48 hours.
5. Customer pays the funder or you. Depending on the arrangement (factoring vs discounting), payments are made to the funder or to your account.
6. Reserve released. When the invoice is paid, the funder releases the remaining balance minus fees and any charges.
7. Reconciliation. You receive statements showing advances, fees and balances. Regular reporting helps track cashflow and debtor behaviour.

Typical timeline: submit invoice → advance within 24–48 hours → customer pays in 30–90 days → remaining balance (less fees) released.

Get Quote Now — it takes just a couple of minutes to submit an enquiry and get matched to lenders who specialise in transport and logistics finance.

Difference between factoring and discounting — which suits haulage?

Both products release cash from invoices but differ in who manages collections and whether customers are aware.

Invoice Factoring

• Funder typically takes over collections and credit control.
• Often easier for smaller operators or businesses without dedicated credit teams.
• Customer invoices often show the funder’s details (disclosed).
• Advance rates commonly 70–90% depending on debtor credit.

Invoice Discounting (Confidential)

• You keep collection responsibility and customer relationships stay with you.
• Preferred by established fleets or those who want confidentiality.
• May require stronger internal credit control and higher trust from the funder.

Which suits you? Small owner‑managed operators often prefer factoring to reduce admin; larger fleet operators with strong credit control teams often choose confidential discounting. For help choosing, Get a Free Eligibility Check.

Typical costs, advance rates and contract features for 30–90 day invoices

Costs vary by lender, debtor credit, contract type and whether you choose recourse or non‑recourse. Always compare quotes.

• Advance rates: typically 70–90% of invoice value; higher where debtors are large, well-known companies.
• Fees: may include a discount fee (percentage of invoice), service/admin fees, minimum monthly fees and possible set‑up charges. Some funders charge a blended rate; others itemise fees.
• Pricing models: flat monthly fee, percentage-of-invoice, or a combination. Non‑recourse arrangements cost more because the funder assumes some bad‑debt risk.
• Contract terms: minimum terms, notice periods, debtor credit approvals and reporting requirements. Check for hidden admin fees and billing cycles.
• Recourse vs non‑recourse: recourse means you remain liable if a debtor fails to pay; non‑recourse shifts some risk to the funder but is stricter and costlier.

Costs depend on your business, customer base and the chosen provider. We recommend requesting multiple quotes to compare true cost and service. Start with a Free Eligibility Check.

Real-world examples (illustrative)

Three short, anonymised scenarios to show how invoice finance helps haulage companies:

• Owner‑driver contractor with single large customer: Problem — won a £15,000 job payable in 60 days but needs cash for fuel and sub‑contractors. Solution — factoring with 80% advance. Outcome — £12,000 within 24 hours; remaining balance on payment less fees. Takeaway: enables one-off contract delivery without cash strain.
• SME fleet operator upgrading vehicles: Problem — steady contracts but cash tied in invoices; wants to buy two replacement trucks. Solution — confidential invoice discounting with a 75% advance rate. Outcome — immediate usable capital to place deposits on vehicles while collections remain in-house. Takeaway: preserves customer relationships and supports capex.
• Brokered freight operator on 60‑day supermarket terms: Problem — long payment terms, one large debtor with strong credit but slow pay. Solution — non‑recourse factoring to shift debtor default risk. Outcome — faster cash and protection from a customer default, at a slightly higher fee. Takeaway: reduces debtor risk exposure for large contracts.

Free Eligibility Check — see which option lenders prefer for your debtor profile.

Eligibility & documentation haulage lenders typically ask for

Prepare these documents to speed up approval:

• Latest management accounts or up‑to‑date bookkeeping summaries (often 3–12 months).
• Recent bank statements (last 3 months).
• Copies of the invoices you want funded and sample purchase orders or contracts.
• Company registration details (Companies House) and ID for directors where required.
• Evidence of large customer contracts or master service agreements.

Eligibility is influenced more by the creditworthiness of your debtors (your customers) than by your own business history. Clean, consistent invoicing and clear payment terms speed approvals.

Benefits vs risks — what to watch for

Benefits

• Immediate cash from unpaid invoices.
• Ability to scale, take on new contracts and manage peaks.
• Less reliance on overdrafts or personal guarantees for short-term needs.

Risks

• Cost of finance reduces margin on invoices.
• Factored invoices may alert customers to third‑party collections.
• Minimum fees and notice periods can make short-term cancellation expensive.
• Overreliance can mask structural cashflow problems.

How to manage risk: compare providers, ask for full fee disclosure, choose recourse/non‑recourse wisely and maintain robust invoicing and credit control.

How UK Business Loans helps haulage businesses

UK Business Loans connects transport and haulage companies with brokers and lenders who specialise in invoice finance and logistics funding. We don’t lend or give regulated financial advice — we match your enquiry to providers who can offer quotes tailored to your debtor profile and funding needs.

How it works: complete a short enquiry (not a loan application) and we’ll pass your details to relevant partners. Many enquiries receive responses within hours. For hauliers seeking tailored logistics funding options, we can point you toward suitable solutions and providers — for example, see our industry page on logistics business loans for more sector-specific guidance.

Get Started — Free Eligibility Check (form takes around two minutes).

Choosing the right lender or broker — 8‑point checklist

• Industry experience with haulage & logistics.
• Advance rate and typical funding speed.
• All fees and sample calculations provided upfront.
• Recourse vs non‑recourse options.
• Contract length and cancellation terms.
• Credit approval process for your debtors.
• Client reporting tools and portal usability.
• References or sector case studies.

Need help comparing providers? Talk to an expert — Free Eligibility Check.

Frequently asked questions

Will invoice finance work if my customers pay in 60 or 90 days?

Yes — invoice finance is built to bridge 30–90+ day payment terms. The funder’s willingness and advance rates depend on your customer’s credit quality.

Do customers know if I use invoice finance?

It depends: factoring is typically disclosed; invoice discounting is confidential and keeps collections with you.

Can I use invoice finance for fuel or subcontractor bills?

Invoice finance applies to invoices you raise to customers. Some lenders offer complementary facilities (e.g. fuel cards, purchase ledger finance) — discuss needs with brokers when you enquire.

How quickly can I get funds?

Advances are often released within hours to 48 hours after an invoice is approved; initial facility setup takes longer depending on documentation and credit checks.

Will using UK Business Loans affect my credit score?

Submitting an enquiry via UK Business Loans does not affect your credit score. Lenders/brokers may perform checks later if you progress to an application.

Are there minimum contract lengths?

Many providers have notice periods or minimum terms. Always check the contract before committing.

Ready to unlock cash from your invoices?

Our quick enquiry is free and not an application — it helps us match your haulage business to the best lenders and brokers for 30–90 day invoice financing. Typical funding starts from around £10,000 and up. Complete the short form and get matched quickly: Free Eligibility Check — Get Quote Now.

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About this page: written by the UK Business Loans content team to explain invoice finance for transport and haulage businesses. For tailored introductions to finance providers, complete our short enquiry form and we’ll match you to partners ready to help.

1) Will invoice finance work if my haulage or transport customers pay on 30–90 day terms?
Yes — invoice finance is specifically designed to bridge 30–90+ day payment terms for haulage and transport businesses, with acceptance and advance rates driven mainly by your customers’ creditworthiness.

2) What’s the difference between invoice factoring and invoice discounting?
Invoice factoring is usually disclosed and the funder handles collections, while invoice discounting is confidential and lets you retain customer relationships and credit control.

3) How much of an invoice can I get up front (advance rate)?
Typical advances range from about 70–90% of the invoice value depending on debtor quality, contract type and the chosen lender.

4) How quickly will I receive funds after submitting an invoice?
Once a funder approves the invoice you can often receive an advance within hours to 48 hours, while initial facility setup and credit checks take longer.

5) What fees should I expect for invoice finance?
Costs vary by provider but commonly include a discount fee (percentage of invoice), service/admin fees, minimum monthly charges and higher pricing for non‑recourse arrangements.

6) Will using invoice finance alert my customers or harm relationships?
It can — factoring is typically visible to customers, whereas confidential invoice discounting keeps the arrangement hidden and preserves direct customer contact.

7) Can start‑ups or businesses with imperfect credit access invoice finance?
Yes, some lenders will fund start‑ups or businesses with poor credit if the invoices are to creditworthy debtors, but eligibility varies by provider.

8) Am I liable if a customer fails to pay (recourse vs non‑recourse)?
Liability depends on the contract: recourse facilities leave bad‑debt risk with you, while non‑recourse shifts some risk to the funder at a higher cost.

9) What documents do haulage lenders typically ask for to set up invoice finance?
Lenders usually request recent management accounts or bookkeeping, bank statements, copies of invoices and purchase orders, company registration details and ID for directors.

10) How does UK Business Loans help me get invoice finance and will submitting an enquiry affect my credit score?
UK Business Loans is an introducer that matches your free enquiry to specialist brokers and lenders (it’s not a loan application or regulated advice) and submitting the enquiry does not affect your credit score.