How money moves in this industry
A new route can increase revenue and immediate fuel, vehicle and staffing costs at the same time. Repairs can interrupt income without reducing finance repayments.
A practical example
A carrier takes on a distribution contract and needs another truck while invoices will be paid after delivery.
This illustrates a funding need; it is not a lender eligibility claim or a recommendation to borrow.
Common reasons to explore finance
- Fleet purchase
- Contract mobilisation
- Fuel and wage gaps
- Depot expansion
Equipment and assets that may be financed
Asset finance depends on the lender's product, the asset, its condition and the proposed term. Examples in this industry include:
- Trucks and trailers
- Refrigerated vehicles
- Material-handling equipment
Questions to prepare for a lender discussion
These are useful preparation questions, not a statement that any particular lender accepts this industry.
- How concentrated is revenue in a few contracts?
- What are vehicle age, utilisation and maintenance records?
- How quickly do customers pay accepted invoices?
Insurance and business continuity
Finance is one part of a business decision. This industry may also need to consider goods in transit, commercial motor, public liability cover, depending on its activities, contracts and legal obligations. Our business insurance guide explains the concepts and links to official Australian sources.