Invoice Finance for Transport & Haulage
The UK transport and haulage sector drew £3.8 billion from invoice finance facilities in 2025, making it the third-largest industry for this type of funding. The reason is structural: diesel costs, driver wages, and vehicle maintenance are paid immediately, but freight customers typically pay on 45-60 day terms. Invoice finance closes that gap, releasing 80-90% of each delivery invoice within 24 hours.
UK transport and haulage drew £3.8 billion from invoice finance in 2025, the third-largest industry for this funding. Invoice finance releases 80% to 90% of each delivery invoice within 24 hours against 45 to 60 day customer terms. More detail + scope
Summary
The UK transport and haulage sector drew £3.8 billion from invoice finance facilities in 2025, the third-largest industry for this funding. The reason is structural: diesel, driver wages and vehicle maintenance are paid immediately while freight customers pay on 45 to 60 day terms. Invoice finance closes that gap, releasing 80% to 90% of each delivery invoice within 24 hours.
This page covers
Invoice finance for UK transport and haulage companies, sector funding volume, advance rates and customer payment terms
Not covered here
Specific provider reviews (see /providers/), general invoice finance education (see /guides/), freight and distribution (see /industries/)
Why Transport Companies Use Factoring
A haulage company running 10 trucks at £1,500/week in fuel and driver costs needs £60,000/month cash just to keep wheels turning. If the customer pays on 60-day terms, you're carrying £120,000 of unpaid invoices at any time. That's cash you've earned but can't touch.
Invoice finance converts those £120,000 of outstanding invoices into £96,000-£108,000 of available cash within 24 hours of invoicing. Fuel gets paid, drivers get paid, and you can take on more work instead of turning it away.
What Providers Look For
Transport factoring is well-understood by all major providers. They know the sector, understand the cash flow dynamics, and have pricing models for it. What they assess:
- Customer quality: Are you delivering for blue-chip retailers, supermarkets, manufacturers? The stronger the customer, the better your rate.
- Contract type: Regular ongoing deliveries are preferred over one-off spot loads. A contract with Tesco is better than random loads from a freight exchange.
- Fleet size and revenue: Minimum turnover is usually £50,000/year. Even owner-drivers with one truck can qualify.
- PODs (proof of delivery): You need clean, signed proof of delivery before the provider will advance against an invoice. Electronic PODs are fine.
Best Providers for Transport
| Provider | Min Turnover | Advance Rate | Transport Specialist? |
|---|---|---|---|
| Bibby | £50k | Up to 90% | Yes - dedicated team |
| Close Brothers | £50k | Up to 90% | Handles transport well |
| Ultimate Finance | £50k | Up to 95% | Flexible on smaller operators |
| Novuna | £100k | Up to 90% | Good combined with vehicle finance |
Typical Costs for a Haulage Company
Example: 5-truck operation, £30,000/month invoicing, 50-day terms
That's £677/month to unlock £25,500 of cash flow. Compare that to not being able to fill your trucks because you can't afford diesel.
Founder & Managing Director, Muswell Rose, founder and PSC of Best Business Loans Ltd
Adam is the founder and managing director of Muswell Rose and a founder of Best Business Loans Ltd, the company behind Market Invoice. He spent over three years as managing director of Penny, a UK invoice finance business, and his career runs through insurance, mortgages, commercial finance and fintech lending. He writes the Market Invoice library.
Last reviewed: 18 June 2026