Transport is a cash-hungry business
Few industries spend as much money before they get paid as transport. Every load costs fuel, tolls, driver wages, tyres and wear on the truck before the invoice is even raised. Then the customer pays on 30-day terms if you're lucky, 60 or 90 if they're a big shipper who sets the rules. A fleet operator can be owed a fortune in receivables and still struggle to pay the fuel card.
Breakdowns are the other killer. A blown engine or gearbox on a prime mover is a large, unplanned bill, and the truck earns nothing while it's off the road. Registration renewals, insurance premiums and compliance costs come in big annual or quarterly lumps. Winning a new contract can make it worse, because you need extra trucks, trailers or drivers before the new customer's first payment arrives.
Pressure points for operators
- Long debtor days from large freight customers
- Fuel price rises that hit before you can pass them on
- Major repairs and downtime on key vehicles
- Annual rego, insurance and compliance costs
- New contracts requiring more vehicles or drivers up front
- ATO debt from GST, PAYG and fuel-related adjustments
Transport scenarios we fund
| Operator | Situation | Use of funds | Exit |
|---|---|---|---|
| Interstate linehaul | Major customer moved to 90-day terms | Covers fuel and wages while receivables catch up | Receivables collected |
| Local delivery fleet | Won a new contract needing three more vans | Buys the vans outright | Contract cash flow, then refinance |
| Owner-driver | Engine rebuild with the truck off the road | Pays for repairs to get earning again | Business cash flow |
| Refrigerated transport | ATO garnishee threat and supplier accounts on stop | Clears the ATO and suppliers | Refinance once tax is current |
| Warehouse and logistics | Needs to fit out a new depot before a contract starts | Racking, forklifts and fit-out | Refinance or business cash flow |
| Tipper and haulage | Selling surplus trucks, buyer settles next quarter | Advance against the sale to fund current costs | Sale of the trucks |
Examples are illustrative only. Every loan is assessed on its own scenario.
Why the usual options fall short
Equipment finance helps with buying trucks but won't pay your fuel bill or the ATO. Debtor finance can lend against invoices, but it often needs set-up time, reporting and customer notification, and it won't help with an ATO debt or a repair. Banks want years of financials and a clean credit file, and a bank refinance commonly takes up to three months or more.
Cash flow lenders look at bank statements. Transport statements are full of large fuel and repair payments and irregular receipts from big customers, which can make the business look riskier than it is. Repayments taken daily or weekly then strip the working capital you borrowed to fix the problem.
How a property-secured loan keeps the fleet moving
Equity Tap lends against property: your home, an investment property, your depot or another commercial property. We can take a first mortgage, a second mortgage that leaves your existing lender in place, or a caveat. No valuation is ordered before approval, and we don't need tax returns, BAS, profit and loss or bank statements.
Because the loan is for one to twelve months, you match it to your receivables cycle or the contract ramp-up. Interest for up to the first six months can be prepaid or added to the loan, so there are no scheduled payments while the invoices come in. Interest is not waived, and you see the full cost before you proceed.
There's no credit check at initial assessment, and defaults, ATO debt or a past decline are not automatically a problem. If your current situation has been made worse by a cash flow lender, see declined for an unsecured business loan.
We are business owners lending to business owners, not bank people. We understand that a transport company with a yard full of trucks and a ledger full of money owed is a very different thing from a business in trouble.
Typical exits in transport
- Collection of outstanding freight receivables
- Cash flow from the new contract the loan helped you start
- Sale of surplus trucks, trailers or equipment
- Refinance to a bank or equipment financier once the business is stable
- Insurance payout after an accident or theft
What we need
ID, the security property and existing mortgage details, what the funds are for and evidence of the exit, such as an aged receivables list, a contract or a sale agreement. More detail is on our documents page.
Broker note
Transport clients often have equipment finance with one lender, debtor finance with another and an ATO problem nobody will touch. Send the scenario through the broker page and get a quick indicative answer. We can bridge the client while you restructure the longer-term facilities.
Also see wholesale and import and working capital business loans. Apply online or call 1300 123 024.
Business-purpose lending only. Approval, timing and terms depend on the scenario.
Frequently asked questions
My customers pay on 90-day terms. Can you help me wait it out?
Can I use the loan to buy trucks?
Do you lend against the trucks?
I have equipment finance already. Does that matter?
Can you pay out my ATO debt?
Do I need to provide bank statements?
How quickly can a transport operator be funded?
Brokers: send the scenario through the Equity Tap broker channel and you will deal with the same lending team.