Business funding for trucking and logistics companies
Reviewed by Turan Zeynal, Co-Founder, Outset Funding Partners ·
Trucking companies — owner-operators to fleets of 50+ trucks — can access $10k–$1M in working capital, equipment financing, or invoice factoring. If your customers pay net-30 to net-60 and fuel and repairs can't wait, factoring or an MCA can get you cash within days, depending on the lender. Equipment financing at 8–18% APR is the go-to for tractors, trailers, and reefers.
Quick facts
- Working capital
- $10k – $500k; timing set by the lender
- Equipment financing
- Up to $1M, 8% – 18% APR
- Invoice factoring
- Advance 85–95% of the invoice, funded quickly once invoices are verified
- Min revenue
- $10,000/month
- Min credit
- 500+ (working capital) / 620+ (equipment)
- Time in business
- 6+ months
The 60-second answer
Trucking is a working-capital business — you pay for fuel, repairs, insurance, and drivers today, and get paid 30–60 days from now. When one truck goes down or fuel spikes, most operators don't have weeks to wait on a bank. That's why factoring, MCA, and equipment financing dominate the industry.
The right product depends on the problem: buying a truck is equipment financing; covering payroll and fuel while receivables age is factoring or working capital; expanding the fleet is a mix of equipment and a business line of credit.
Owner-operators: what funding looks like at one truck
With one truck, a single bad week can stop your income. Owner-operators with $10,000+ in monthly revenue and 6+ months operating typically see offers in the $10k–$50k range for repairs, insurance, and fuel. The right product depends on what you are paying for.
- Working capital: fast cash for repairs, insurance, and fuel. Decisions usually come in a few business days, depending on the lender.
- Equipment financing: for a tractor or trailer on its own. Used equipment up to 10–12 years old can usually be financed, and 620+ credit gets the best pricing.
- Factoring: if you haul for brokers on net-30 or longer, factoring advances 85–95% of the invoice when you deliver. It is usually the cheapest option per dollar for operators with steady invoices.
- Watch out: an MCA is fast but expensive. It fits a revenue-generating emergency, such as a repair that gets the truck back on the road, not a slow month.
Pros and cons
- ✓Equipment financing uses the truck itself as collateral — no additional lien on your business
- ✓Factoring converts your invoices into cash quickly, often within days
- ✓Working capital can fund within days for repairs, fuel, or insurance
- ✓Lenders weigh revenue and equipment value, not just personal credit
- ✓Terms can match the useful life of the equipment (5–7 years typical)
- ×Factoring costs 1–4% per invoice — meaningful on thin-margin loads
- ×MCA is expensive per dollar — reserve it for true emergencies
- ×Missing an equipment payment can trigger repossession
Who qualifies
- •Owner-operators, small fleets, LTL/FTL, reefer, flatbed, hotshot
- •$10,000+ in monthly revenue
- •6+ months operating (12+ for best equipment pricing)
- •Active DOT/MC authority
- •500+ FICO for working capital; 620+ for equipment
Factoring vs MCA vs equipment financing
| Option | When to use | Watch out for |
|---|---|---|
| Invoice factoring | You bill brokers or shippers on net-30 to net-60 terms. | 1–4% per invoice adds up on thin-margin loads. |
| MCA / working capital | Repairs, insurance, or fuel can't wait and you don't factor. | The most expensive per dollar. Reserve it for emergencies. |
| Equipment financing | You are buying a tractor, trailer, or reefer. | Missed payments can trigger repossession. |
Frequently asked questions
Can I get funded as an owner-operator?
Yes. Owner-operators with $10k+/month in gross revenue and 6+ months operating typically qualify for $10k–$50k in working capital and equipment financing on individual tractors.
How does factoring compare to an MCA for trucking?
Factoring is cheaper if you have quality invoices and consistent receivables — you're selling something you already own. MCAs are for operators who don't factor or need cash on top of it.
Can I finance a used semi truck?
Yes. Most equipment lenders finance used tractors up to 10–12 years old. Older equipment usually needs higher down payments and shorter terms.
What if I have a recent bankruptcy or tax lien?
It's still workable. Some lenders in our network fund post-BK operators after 12 months of clean revenue, and tax-lien situations can be handled with a payment plan in place.
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