Last updated: September 19th, 2026
Bolton Business Finance is an independent invoice factoring broker. We place facilities for hauliers, couriers and freight operators across the UK, and transport is the single largest sector we fund.
If you are waiting 30 or 60 days to get paid while fuel, drivers and maintenance come out weekly, factoring releases the cash tied up in invoices you have already earned. Lets explore what options are available for you and what it may cost.
Written by Marcus Wright, owner and founder of Bolton Business Finance Ltd, in financial services since 2008 and a commercial finance broker since 2019. Last reviewed September 2026.
On this page
The short version
- Transport and haulage is one of the best regarded sectors in UK invoice finance. Delivery notes evidence the debt, customers are often large corporates, and there are no retentions or staged payments. It prices below a general SME book.
- Advance rates for hauliers and couriers typically run at 85% to 90% of invoice value, at the top of the 70% to 90% market range.
- Cost is two parts: a service fee of roughly 0.5% to 3% of invoice value, and a discount charge of about base rate plus 2% to 5% a year on what you draw. Base rate is 3.75% as at September 2026.
- Funds are usually available within 24 hours of raising an invoice. Facilities take about 5 to 10 working days to set up.
- UK lenders advanced £22.7 billion through invoice finance in 2025. Transport accounted for £3.8 billion of it.
- Factoring can help you evidence operator licence financial standing, because available funding counts toward it.
- We do not charge a broker fee on invoice factoring.
Trucking Invoice Factoring
If you are a trucking company in the UK, then you may benefit from a commercial finance broker that understands the freight and transport sector.
If you are waiting to get paid from clients 20+ days, then factoring can be a great solution for your trucking company. Helping to pay for fuel costs, vehicle maintenance and also to grow your business.
As is common in the freight transport sector, many contracts require you to wait for 30 or even 60 days before you get paid. In the meantime you have to keep drivers happy, trucks fuelled and meet the financial standing requirements for your operators licence.
| Item | Typical position |
|---|---|
| Advance rate | 85% to 90% of invoice value for transport, against a 70% to 90% market range |
| Service fee | 0.5% to 3% of invoice value. Factoring sits higher than discounting because credit control is included |
| Discount charge | Base rate plus roughly 2% to 5% a year on funds drawn, calculated daily |
| Bank of England base rate | 3.75%, held on 17 September 2026 |
| Speed of funds | Within 24 hours of raising an invoice |
| Setup time | 5 to 10 working days |
| Minimum turnover | From around £100,000 a year |
| Minimum trading history | Some specialists consider 3 to 6 months |
| Security | The invoices themselves. Property is not usually required |
| Sector risk rating | Low. Transport is well regarded and prices below a general SME book |
Ranges reflect the UK market and our lender panel as at September 2026. They are not a quote. What you are offered depends on turnover, customer spread, trading history and how you invoice. Bolton Business Finance Ltd is not authorised by the Financial Conduct Authority and arranges non-regulated, business-purpose finance only.
What Trucking Invoice Factoring Costs
The cost of an invoice finance facility will vary significantly between both providers and dependant on your individual circumstances. The higher the turnover, generally the lower the cost as a percentage of turnover.
There are two main charges. The service fee is a percentage of invoice value and pays for running the sales ledger and chasing payment. The discount charge is interest on the money you have actually drawn, calculated daily, so it behaves like an overdraft rather than a loan. On most facilities the service fee is the larger of the two.
| Item | Figure |
|---|---|
| Invoice raised on delivery | £10,000 |
| Advance rate | 85% |
| Cash within 24 hours | £8,500 |
| Service fee at 1% | £100 |
| Discount charge at base plus 3%, 45 days | About £71 |
| Total cost of that invoice | About £171, or 1.7% of invoice value |
| Balance released when the customer pays | £1,500 less fees |
Illustration only, using mid-range figures and the Bank of England base rate of 3.75% as at September 2026. Your own service fee and discount margin will be set on turnover, customer spread and trading history.
Typical factoring fees include a setup or arrangement fee, the service charge and the interest or discount fee. Some lenders may just charge a single fee incorporating all three. Other potential fees:
- Bad Debt Protection (BDP)
- Refactoring Fee, charged when an invoice passes the agreed recourse period
- Credit Note Fee
- Annual Review/Renewal
- Survey Fees
- CHAPS or same day transfer fees, typically £10 to £30 per payment
To read in more depth about the costs of factoring, click here.
Why Transport And Haulage Price Well
Transport is one of the sectors invoice finance lenders like most, and that shows in the terms. Three reasons.
The debt is easy to evidence. A signed delivery note or POD proves the job was done. Compare that with construction, where payment depends on applications for payment, valuations and retentions, or with professional services, where a dispute over scope can stall an invoice for months.
The customers are usually good. Hauliers and couriers typically invoice freight forwarders, large corporates, retailers and manufacturers rather than consumers or micro businesses. Lenders underwrite your customers as much as they underwrite you, so a ledger full of creditworthy names is worth more than a strong balance sheet.
There are no retentions or staged payments. The invoice is raised, it falls due, it gets paid. Nothing is held back until practical completion.
The result is that transport sits at the better end of the market on both advance rate and price. Where a difficult sector might be offered 70% to 80% and priced accordingly, a haulier with a clean spread of customers should expect 85% to 90%.
The one thing lenders do watch is customer concentration. A small operator running most of its miles for a single freight forwarder is a different proposition from one with twenty customers, and the facility will usually carry a concentration limit capping how much of the ledger any one customer can represent.
Factoring And Operator Licence Financial Standing
This is the part most general invoice finance guides miss, and it matters if you hold an O licence.
The Traffic Commissioner requires operators to demonstrate financial standing, which is evidence of available funds to keep vehicles roadworthy and run the operation. The current levels:
| Licence type | First vehicle | Each additional vehicle |
|---|---|---|
| Standard national and international | £8,000 | £4,500 |
| Restricted | £3,100 | £1,700 |
Levels are reviewed annually, usually in January. They are calculated on the number of vehicles your licence authorises, not the number you actually run, so a licence for ten with five on the road still needs funds for ten. This is a continuing requirement and the Traffic Commissioner can ask for evidence at any time, not just at application or five year continuation. Check current figures with the Office of the Traffic Commissioner before relying on them.
An operator licensed for six HGVs on a standard licence therefore needs to evidence £8,000 plus five lots of £4,500, which is £30,500.
An invoice finance facility can be used as evidence of available finance, because undrawn availability against your sales ledger is accessible funding. For a growing haulier that is often the difference between being able to add vehicles to the licence and having to wait. Speak to your transport lawyer or compliance adviser on how your particular facility should be presented to the Traffic Commissioner, as the treatment depends on the facility terms.
Self Billing And Freight Exchange Work
Two things specific to transport change which lenders will look at you.
Self billing
Many large hauliers and freight forwarders self bill, raising the invoice on your behalf rather than waiting for you to send one. It is normal practice in the sector and it is not a barrier, but it does make verification of the debt harder for a lender, because the paperwork originates with the customer rather than with you.
Some funders handle self billing routinely and have processes built for it. Others are uncomfortable with it and will either decline or apply a lower advance rate. If a meaningful share of your ledger is self billed, say so at the outset. It narrows the panel, and placing it with the wrong lender wastes weeks.
Freight exchange platforms
If you take work through a freight exchange rather than on direct contracts, lenders treat it as slightly higher risk. The customer relationship is shorter, the terms are set by the platform, and disputes over damage or shortage are more common. It is fundable, and we place it regularly, but expect a slightly tighter advance rate than the same operator would get on direct contract work.
Some High Street banks are not familiar with how courier and haulage platforms work and will not fund against them at all. Specialist funders will.
Choosing A Factoring Company For Truckers & Trucking
There are a large number of factoring companies in the UK that will provide funding to trucking companies. From high street banks to small specialist providers and larger alternative lenders. Choosing the right one for you will depend on a number of important factors, such as:
- What is the turnover of the business?
- How long have you been trading?
- Do you have a spread of clients or one/two large clients
- Does the company or directors have any bad credit
- Can you integrate directly with the factoring company via your accounting software
- Are you currently in a CVA?
- Is any of your ledger self billed?
- Is the work direct or through a freight exchange?
As you can see there are a large number of things that will dictate which is the best factoring company for your trucking business. It is recommended to speak with an independent finance broker such as ourselves to compare your options.
Benefits of Factoring For Truckers
By getting instant access to cash for jobs completed, this means improved cash flow to help pay for costs such as:
- Pay Fuel Bills & HGV Maintenance
- Pay Drivers On Time & Hire New Drivers
- Deliver Existing Contracts or Take On New Clients To Grow
- Fund The Purchase of New Vehicles
- Evidence operator licence financial standing
Also many factoring providers will provide a credit control service to help with collections. Then you can concentrate on running your business and keeping vehicles on the road. The main features of a factoring facility are:
- Release up to 90% of unpaid invoices
- Draw down as soon as invoice is raised
- Revolving credit facility, interest calculated daily
- Grows with your business, no need to renegotiate as turnover rises
How Invoice Factoring Works For Trucking Companies
Once you have set up an invoice factoring facility, you can then start to draw down funding with every new invoice raised.
If you are trading with brand new clients, you may need to apply for a credit limit on them before delivering any goods for them.
Once your client pays, the balance on the facility reduces by that amount, minus any fees and interest. The percentage of each invoice you can draw is called the advance rate.
Click here to find out more about invoice factoring in general.
Factoring For Truckers Using Courier or Haulage Platforms
If you are using a courier or haulage work platform to complete jobs for clients, then you may need a factoring company that specialises in that area. Read more:
- Courier finance and courier invoice factoring, covering invoice finance and van and truck asset finance for courier operators
- Haulage factoring and invoice finance for UK freight
Trucking Invoice Factoring FAQ
What advance rate can a haulage company expect?
Typically 85% to 90% of invoice value, which is at the top of the 70% to 90% market range. Transport prices well because delivery notes evidence the debt, customers are usually creditworthy corporates, and there are no retentions or staged payments. A concentration limit may apply where one customer makes up a large share of the ledger.
How much does trucking invoice factoring cost?
Two charges. A service fee of roughly 0.5% to 3% of invoice value covering credit control and ledger management, and a discount charge of about base rate plus 2% to 5% a year on the funds you draw, calculated daily. The Bank of England base rate is 3.75% as at September 2026. On a £10,000 invoice at 85% advance, a 1% service fee and a 45 day settlement, total cost is around £171.
Can factoring help me meet operator licence financial standing?
It can. Financial standing requires evidence of available funds, currently £8,000 for the first vehicle and £4,500 for each additional vehicle on a standard licence, assessed on the number of vehicles your licence authorises rather than the number you run. Undrawn availability under an invoice finance facility is accessible funding and is commonly used as part of that evidence. Confirm the treatment of your specific facility with your transport lawyer or compliance adviser.
Can I factor invoices if my customers self bill?
Yes, but it narrows the panel. Self billing is normal in transport and many funders handle it routinely. It does make verification of the debt harder, because the paperwork originates with your customer rather than with you, so some lenders will decline it or offer a lower advance rate. Tell your broker at the outset if a meaningful share of your ledger is self billed.
Can I fund work taken through a freight exchange?
Yes. Lenders treat freight exchange work as slightly higher risk than direct contract work, because the customer relationship is shorter and disputes over damage or shortage are more common, so expect a slightly tighter advance rate. Some high street banks will not fund platform work at all. Specialist funders will.
How quickly can a facility be set up?
Most facilities take 5 to 10 working days from application to first drawdown, subject to the lender reviewing your sales ledger and debtor book. Once the facility is live, funds are usually available within 24 hours of raising an invoice.
Can I get factoring with bad credit or while in a CVA?
Often yes. Lenders in this market underwrite your customers as much as they underwrite you, so the quality of the debtor book carries more weight than the company or director credit file. A CVA narrows the panel rather than ruling it out. It is worth declaring upfront so the case goes to lenders who can actually write it.
Get A Free Factoring Quote Today
Tell us your numbers
Send us your annual turnover, roughly how many customers you invoice, your payment terms and whether any of your ledger is self billed, and we will come back with what is available across our panel. We do not charge any broker fees for invoice factoring applications.
About the author
Marcus Wright is the owner and founder of Bolton Business Finance Ltd. He has worked in financial services since 2008, beginning his career at Santander, and spent time on the lender side at an independent invoice finance provider before becoming a commercial finance broker in March 2019.
He founded Bolton Business Finance in 2020 to give businesses access to the whole lending market rather than one bank’s own product range. The firm is a member of the National Association of Commercial Finance Brokers and works with a panel of 135+ lenders. Transport and logistics is the largest single sector the firm funds through invoice finance.
Call 0161 546 9128.
Bolton Business Finance Ltd is an independent commercial finance brokerage, not a lender. We are not authorised by the Financial Conduct Authority and can only complete non-regulated introductions. All lending is for business purposes only. Figures on this page are illustrative market and panel ranges as at September 2026, not quotes. Operator licence financial standing levels are set by the Traffic Commissioner and reviewed annually: confirm current figures with the Office of the Traffic Commissioner and take your own compliance advice. Registered address: Westgate House, 1 Westgate Avenue, Bolton, Greater Manchester, BL1 4RF. Company number 12495909.