Invoice finance allows your transport business to have a cash flow that can help it grow. It’s a way of leveraging against outstanding invoices to release working capital. You can release up to 95% of all outstanding invoices, giving you a boost to your businesses cash-flow, whilst having the security of the funding. You can also credit insure all your invoices to protect against defaults in payments.

Running a transport, haulage, or courier business often incurs cash-flow issues due to high asset finance costs that include trucks, vans, and machinery.

With the added pressures of daily expenditure such as fuel and wages, compounded with 30, 60, or even 90-day payment terms, cash flow can become problematic. That’s why the largest businesses in Bristol and the UK use invoice finance to support their business.

Transport invoice finance, sometimes referred to as transportation invoice financing, is a financial solution designed specifically for businesses in the transportation and logistics industry. This type of financing addresses the cash flow challenges that can arise when these businesses face delays in receiving payment from their clients. It allows transportation companies to access funds more quickly by using their outstanding invoices as collateral. Here’s how transport invoice finance typically works:

1. Invoice Factoring: In this method, a transportation company (such as a trucking company or logistics provider) sells its unpaid invoices to a factoring company. The factoring company advances a significant portion of the invoice amount, often around 80-90%, to the transportation company immediately. The factoring company then takes over responsibility for collecting payments from the transportation company’s clients. Once the clients settle the invoices, the factoring company pays the remaining balance to the transportation company, minus a fee. The fee covers the cost of financing and credit control services.

2. Invoice Discounting: With invoice discounting, the transportation company uses its unpaid invoices as collateral to secure a loan or line of credit from a financial institution. Unlike factoring, the transportation company retains control over the collection process and client relationships. The financial institution advances a percentage of the invoice amount (typically around 80-90%), and the transportation company is responsible for collecting payments from clients. Once the clients pay, the transportation company repays the loan or credit line with interest.

Transport invoice finance is valuable for transportation and logistics businesses because it helps them maintain a steady cash flow, meet their financial obligations (e.g., fuel costs, maintenance, and payroll), and invest in the growth and operations of their companies without being hindered by delayed client payments. It’s a flexible financial tool that aligns with the specific cash flow challenges of the transportation industry, where operating

Invoice discounting for transport businesses is one of the most cost-effective ways to support cash flow. It’s a premium finance product reserved for the higher turnover transport businesses.

The minimum turnover for invoice discounting is £400,000 upwards and will be assessed by us on the individual transport businesses circumstances.

It’s a simple way to grow a transport business quickly. You can upload a total figure of outstanding invoices and have 95% released to you within 24 hours.

Most large corporations use invoice discounting to withstand the pressures of daily and weekly cash flow.

Factoring invoices is scaled from new startups all the way through to a larger more well-established transport business. You can choose the added bonus of your financier collecting outstanding invoices on your behalf. This allows you to concentrate on running your transport company.

Whether you have future plans to become one of the largest transport businesses in the UK or want to stay local, Pinnacle has an invoice finance solution for you.

Factoring is one of the oldest forms of financing in the UK and has been refined over the past 10 years. It’s a clear and transparent way of financing a transport business.

Selective invoice finance gives your courier and haulage business the flexibility and speed of funding. It’s a simple and easy way of financing all or a sample of your outstanding invoices.

With selective invoice finance in Bristol, it allows you to pick and choose what invoices you want to fund. Commonly people refer to selective invoice finance as a ‘pay as you go facility. You may have 1 or 2 customers who are slow at paying your invoices. You can get funding for these particular customers. With the added bonus of it linking with your accountancy software.