Invoice finance for transport and haulage companies


The transport and haulage industry comes with its own unique set of characteristics, challenges and requirements. Invoice finance can provide businesses in this sector with a tailormade solution to maintain cash flow and reduce disruptions.

Every industry is different and being able to identify unique challenges and identify practical funding solutions is the mark of a good broker.

In this blog, we’ll cover some of the common challenges that could be faced by companies operating in the transport and haulage industry and look at how invoice finance can work to solve them.

Common challenges

The transport industry has one of the slowest customer payment profiles in the UK, fuel prices are rising, and operational costs are high.

In a time of uncertainty for UK businesses, many in the haulage, distribution and transport sectors are therefore struggling with their cash flow.

As well as wages needing to be paid, costs such as fuel bills, insurance and vehicle repairs will all drain cash flow rapidly if there is not a balance of funds coming in. These expenses cannot be delayed, as without them business will grind to a halt.

Add to this the challenges posed by trading on credit terms, all it can take is one late payment or an unexpected expense like the cost of a new truck to throw you off course. Operating like this can also make it difficult to grow your business, as a new contract will mean additional costs that you may not be able to accommodate up front.

The benefits of invoice finance

For many companies who find themselves struggling with the above challenges, invoice finance can represent an ideal solution.

It allows you to release funds against the value of invoices within 24 hours of their issue. This means that, rather than wait for your customers to pay, you gain immediate access to cash that can be used to keep the business running as usual, or to grow your business with new clients and contracts.

When it comes to finding the right type of invoice finance for your business, you may find either invoice factoring or invoice discounting provide a better fit.

With invoice factoring the funder will additionally manage your sales ledger on your behalf, with their credit management resource and expertise reducing in-house overheads and improving collection times in general.

Invoice discounting, on the other hand, leaves you in full control of your credit management. The invoice discounting provider will solely provide the funding against the value of invoices, leaving you to collect payment from your customer.

Both invoice finance products can additionally incorporate bad debt protection, safeguarding cash flow from the risk of late payment and bad debt.

Different solutions may be better suited to different businesses, depending on your needs and current operations. If you’re unsure which option may be right for you, speaking to a broker with experience in your industry can help clarify any areas you’re uncertain about.

Our experience

At Hilton-Baird Financial Solutions, we have helped a number of clients in the haulage and distribution sectors over the years, and we’ve seen the difference invoice finance can make to them.

We’ve been able to provide businesses with the support they need to expand, like in the case of Ceredigion Couriers Limited.

See more of our success stories in the haulage and distribution sector here to get a better idea of how the right funding can help your business.

If you’re currently looking into invoice finance for your business, or you aren’t happy with your current solution, why not give our team a call on 0800 9774833. We can help you find the right facility to support your growth and ease your cash flow worries.


Some of the funders we work with

  • Partnership Invoice Finance
  • Cynergy Business Finance
  • Praetura Invoice Finance
  • Close Brothers Invoice Finance
  • Santander Corporate & Commercial
  • Nationwide Finance
  • 4Syte
  • Woodsford Tradebridge
  • Merchant Money
  • Kriya
  • Barclays
  • Regency Factors
  • Tradeplus24
  • Davenham Asset Finance
  • Accelerated Payments
  • Castlebridge
  • Peak Cashflow
  • Skipton Business Finance
  • Haydock Finance Ltd
  • Blazehill Capital
  • InvoCap
  • Berkeley Trade Finance Ltd
  • Giant
  • Optimum Finance
  • Metro Bank SME Finance
  • ABN AMRO Commercial Finance
  • Davenham Trade Finance
  • Lloyds Bank Commercial Finance
  • Ultimate Finance Group
  • PNC Business Credit
  • Aldermore Invoice Finance
  • Time Finance
  • Clear Factor
  • Team Factors
  • Pulse Cashflow Finance
  • IGF Invoice Finance
  • Roma Finance
  • Leumi ABL
  • MaxCap
  • Sonovate
  • eCapital Commercial Finance
  • Royal Bank of Scotland
  • Investec

Authorised and regulated by the Financial Conduct Authority (FCA number 730445)
We are a credit broker and not a lender and offer credit facilities from a panel of lenders