Logistics Business Loans: Standard Terms for Unsecured Working‑Capital (6–60 months)

Summary: Logistics firms typically access unsecured working‑capital loans with terms from 6 to 36 months in most cases; 36–60 month unsecured facilities are possible but less common and usually depend on turnover, credit profile and lender appetite. This page explains typical lengths, loan sizes, pricing models, repayment styles, when a longer term makes sense, alternatives and how UK Business Loans can quickly match you to suitable lenders and brokers.

UK Business Loans is an introducer — not a lender and we do not provide financial advice. We connect businesses with trusted lenders and brokers. Using our service is free and no obligation. Submitting an enquiry will not affect your credit score.

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Table of contents

• Quick summary: what this page covers
• What is an unsecured working‑capital loan?
• Typical loan terms for logistics — ranges and examples
• What determines the term a lender will offer?
• Interest, fees and repayment styles
• Pros & cons of longer unsecured terms (36–60 months)
• Alternatives and hybrid solutions
• How UK Business Loans helps logistics firms
• Practical checklist: documents to prepare
• Frequently asked questions
• Get started

Quick summary: what this page covers

• Typical unsecured working‑capital loan terms for logistics: most commonly 6–36 months; 36–60 months possible but rarer.
• Loan sizes commonly arranged for SMEs: typically from £10,000 up to several hundred thousand pounds unsecured.
• Repayment styles: monthly capital & interest, interest‑only, revolving lines or factor‑style products.
• What affects term choice: purpose of funds, turnover, credit, existing liabilities and lender product type.
• How UK Business Loans quickly matches logistics businesses with lenders/brokers for a free eligibility check.

What is an unsecured working‑capital loan?

An unsecured working‑capital loan is short‑to‑medium term funding provided without taking a specific business asset (like vehicles or property) as security. Logistics businesses use these facilities to bridge payroll, cover fuel spikes, finance seasonal peaks, pay sub‑contractors, or fund depot and warehouse running costs.

Unsecured working capital differs from secured loans (vehicle finance, hire purchase) and invoice/asset finance because the lender relies primarily on cashflow, profit and credit history rather than a physical asset. That makes unsecured products quicker to arrange but generally more expensive and often offered for shorter durations.

Typical loan terms for logistics — ranges and examples

Below is a practical breakdown of common term buckets and when each is typically used.

Term length	Typical loan size (SMEs)	Common uses	Typical lender type
6–12 months	£10k–£100k	Seasonal cashflow, one‑off fuel or maintenance spikes, short contract bridging	Online lenders, specialist short‑term lenders, marketplace platforms
12–24 months	£10k–£250k	Fleet maintenance, small depot fit‑out, extended working‑capital cushion	Alternative business lenders, broker networks
24–36 months	£25k–£500k	Larger fleet repairs, multi‑site working capital, planned multi‑month cashflow needs	Regional banks, specialist lenders via brokers
36–60 months	£50k–£1m+	Longer growth bridge, restructuring to longer finance — less common unsecured	Select specialist lenders/brokers; often bespoke pricing

Note: these ranges are indicative. Exact term and amount a lender will offer depends on your business profile, contract length with customers, and the use case. Not all lenders will offer unsecured borrowing beyond 36 months — for longer horizons, many logistics businesses instead use a mix of secured asset finance and shorter unsecured facilities.

What determines the loan term a lender will offer?

Several practical factors influence term length:

• Purpose of funds: short spikes favour 6–12 months; structural growth needs suggest 24+ months or different finance types.
• Turnover and margins: higher, stable turnover supports longer unsecured terms.
• Credit history & director support: clean business credit, personal guarantees or director deposits widen lender options.
• Existing liabilities: heavy debt or covenants may limit unsecured term length.
• Contract profile: long, recurring B2B contracts reduce perceived risk; spot freight or seasonal volatility increases it.
• Lender appetite & product type: challenger banks, marketplace lenders and specialist funders each have different maximum unsecured tenors.

Interest, fees and repayment styles: what to expect

Unsecured working‑capital is typically priced higher than secured finance because there is no specific asset for the lender to repossess. Common cost elements include:

• Interest / APR: products can be quoted as an APR, a fixed rate or a factor/multiplier. Rates vary widely by lender and borrower quality — always get a personalised quote.
• Arrangement fees: one‑off onboarding fees between 1–5% can apply.
• Early repayment & exit fees: some lenders charge if you repay early.
• Broker fees: where a broker is used, they may charge a fee or be paid by the lender; UK Business Loans’ introduction service is free for businesses.

Typical repayment styles:

• Monthly capital & interest (most common).
• Interest‑only with a final balloon payment (less common for working capital).
• Revolving credit or overdraft style facilities for ongoing working capital needs.

Example (illustrative only): a £100,000 unsecured loan over 24 months at a notional 12% annual cost could result in monthly payments of roughly £4,712. This is an example only — costs vary and lenders will provide personalised quotes once they review your documents.

Pros and cons of choosing a longer term (36–60 months) unsecured loan

Choosing a longer unsecured term may feel attractive because monthly payments fall, but there are trade‑offs.

• Pros: lower monthly burden improves cashflow planning; avoids taking security initially; can bridge to longer secured refinancing.
• Cons: higher total interest paid; fewer lenders offer long unsecured tenors; may require stronger covenants or director guarantees; lenders may attach higher fees.

Alternatives and hybrid solutions for logistics firms

Unsecured working capital is only one option. Consider these alternatives or combinations, depending on purpose:

• Invoice finance (factoring / discounting): unlocks cash tied in customer invoices — ideal for B2B fleets with 30–90 day invoices.
• Asset finance / hire purchase: finance vehicles or trailers over 24–60 months while the asset secures the loan.
• Revolving credit / overdrafts: flexible short‑term liquidity for variable needs.
• Merchant cash advances: fast but often expensive — useful for high‑transaction businesses.
• Hybrid approach: asset finance for new vehicles + unsecured working capital for payroll and seasonal costs.

If you want a deeper sector overview, see our guide to logistics business loans which explains common funding mixes for transport and warehouse operators.

How UK Business Loans helps logistics firms find the right term

We specialise in matching logistics businesses with lenders and brokers who understand transport, fleets and warehouse cashflow. Our process is fast and focused on finding qualified options:

1. Complete a short enquiry with basic business details and desired amount/term.
2. We match you to lenders/brokers suited to logistics needs and loan tenor.
3. You receive a rapid response; lenders/brokers follow up to provide personalised quotes.

Our service is free and no obligation. Typical loans we help source start at £10,000 and rise to six‑figure facilities depending on needs. Ready to check your eligibility?

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Practical checklist: be ready to apply

Having these documents ready speeds up the process and improves the quality of quotes:

• Latest 12–24 months management accounts and most recent full accounts
• Recent VAT returns and bank statements (usually 3–6 months)
• Details of vehicles/fleet (age, mileage, finance outstanding)
• Major contracts or customer order book evidence
• Details of adverse credit or CCJs (if any)
• Desired loan amount, term and purpose

Frequently asked questions

Are 60‑month unsecured loans common for logistics?

No — they are available but not common. Most unsecured working‑capital loans fall between 6–36 months. Longer unsecured deals (36–60 months) are usually for well‑capitalised businesses or are structured by brokers as part of a bespoke funding package.

Will applying affect my credit score?

Submitting an enquiry through UK Business Loans does not affect your credit score. Lenders may carry out credit checks later if you choose to proceed with an application.

What size loan can I expect?

We typically work with requests from £10,000 upwards. For unsecured working capital, SME amounts commonly range from £10k to several hundred thousand pounds depending on turnover and risk profile.

Can start‑ups in logistics get unsecured working capital?

Possibly. Lenders will consider turnover, customer contracts, director support and cashflow projections. Some specialist lenders and brokers focus on early‑stage businesses.

Do you charge businesses for introductions?

No. Our introductions to lenders and brokers are free for businesses. Lenders/brokers will disclose their fees when they provide quotes.

Ready to find the right term for your logistics business?

Get a free eligibility check and tailored quotes from lenders and brokers who understand logistics. It takes two minutes to complete our short enquiry and does not affect your credit score.

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Legal & compliance

UK Business Loans is an introducer and is not a lender. We do not provide regulated financial advice and we do not charge businesses for introductions. All lending decisions, rates and fees are set by lenders and brokers; individual lending criteria apply.

Privacy, complaints and full terms: please review our site policies before submitting personal or company information.

1. What unsecured loan terms are available for logistics businesses? — Most unsecured working‑capital loans for logistics run 6–36 months (with 36–60 months possible but rarer and usually reserved for stronger businesses or bespoke brokered deals).

2. How much can I borrow for logistics working capital in the UK? — Typical unsecured amounts start at £10,000 and commonly range up to several hundred thousand pounds, with bespoke deals potentially exceeding £1m depending on turnover and profile.

3. Will submitting an enquiry through UK Business Loans affect my credit score? — No — completing the free eligibility enquiry with UK Business Loans does not affect your credit score, though individual lenders may carry out checks later if you apply.

4. Is UK Business Loans a lender and do you charge for introductions? — No — UK Business Loans is an introducer (not a lender) and its service is free and no obligation for businesses.

5. What repayment styles are common for unsecured logistics loans? — Common repayment styles include monthly capital & interest, interest‑only with a final balloon (less common), and revolving credit or overdraft‑style facilities.

6. What fees and costs should I expect on an unsecured working‑capital loan? — Expect higher pricing than secured finance, possible arrangement fees (1–5%), APR or factor/multiplier pricing, and occasional early‑repayment or broker fees disclosed in quotes.

7. What documents should I prepare to speed up a logistics loan application? — Have 12–24 months management accounts, recent bank statements and VAT returns, vehicle/fleet details, major contracts or order book evidence, and any adverse credit information ready.

8. Can start‑ups or businesses with poor credit get logistics working‑capital loans? — Possibly — specialist lenders and brokers may support start‑ups or businesses with imperfect credit if turnover, contracts or director support reduce perceived risk.

9. Are there alternatives to unsecured working‑capital for logistics firms? — Yes — consider invoice finance (factoring/discounting), asset finance or hire purchase for vehicles, revolving credit, merchant cash advances, or hybrid mixes combining secured and unsecured finance.

10. How quickly will I hear back after submitting the UK Business Loans enquiry? — Typically you can expect a response from matched lenders or brokers within hours and usually no later than a day, depending on partner availability.