Business funding for haulage firms

How finance counts towards financial standing

The Office of the Traffic Commissioner works out a sum from the number and type of vehicles on the licence, including those you plan to add. A new applicant shows it with 28 days of bank statements. The Senior Traffic Commissioner’s statutory guidance on finance says the requirement must be met throughout the life of the licence. When an existing operator is asked, it produces three months of statements, and caseworkers take the closing balance at ten points across those months and average them.

Borrowing can count. The unused part of an overdraft or credit facility that the bank has confirmed in writing is added to the average balance, while an offer of a facility counts for nothing. Invoice finance counts only with confirmation of the balance available and not drawn, averaged over three months, and the complete agreement is examined. An overdraft drawn to the limit to pay for fuel adds nothing.

If you fall short, the traffic commissioner can allow a period of grace to put it right, with a starting point of three months that can be extended to six. Otherwise the choice is between reducing the number of authorised vehicles and facing action against the licence.

Financial standing for a 12-truck fleet

The fleet meets today’s requirement with £3,500 to spare. Three more trucks raise the requirement by £13,500, leaving a £10,000 shortfall, so the extra balance or facility has to be in place before the business applies to vary its licence.

The cash cycle of a haulage job

A load delivered on Monday is paid for when the customer’s terms run out, and by then the fuel, the driver’s wages and the wear on the vehicle have all been paid. A haulier adding trucks adds that gap for every new vehicle, so rising profit can come with a falling bank balance. Profitable but short of cash works through that pattern.

Invoice factoring can suit a haulier whose customers are creditworthy businesses and whose proofs of delivery are clean: the funder advances against each invoice and collects the payment. Subcontracted and pallet network work needs more care, because the funder will want to know who owes the money and that the delivery is not disputed.

The Budget on 28 October 2026 extended the 5p cut in fuel duty for a further six months and deferred the planned inflation increase to 1 July 2027.

Hire purchase, finance lease or contract hire

Vehicle finance covers each option, and asset refinance raises cash against trucks you already own. A new heavy goods vehicle bought by a company can qualify for full expensing.

What a lender checks on a haulier

• Your operator licence, its authorised vehicle numbers and any conditions or undertakings
• Three months of bank statements and the facility letters for any overdraft or invoice finance
• A fleet list with registration, age, mileage and outstanding finance on each vehicle
• Maintenance and inspection records, and the results of any roadside checks
• Customers by share of turnover, with payment terms and how long each has used you
• Fuel, wage and subcontractor costs per vehicle, and a forecast showing the cash effect of fleet changes