Last updated: October 4th, 2026
If you are a UK haulage company, then you may be looking at Haulage Factoring for your unpaid invoices.
Lets discuss in this article how to get access to your haulage debts without waiting 30 to 45 days, by using invoice finance. Bolton Business Finance is an independent invoice finance broker and transport is the largest single sector we fund.
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
- Yes, haulage invoices can be factored, whether the work is on direct contracts or booked through a haulage or freight exchange platform.
- Haulage prices well. Delivery notes evidence the debt, customers are usually creditworthy corporates, and there are no retentions. Transport sits at the better end of the market on both advance rate and price.
- Advance rates typically run 85% to 90% of invoice value. Platform work is treated as slightly higher risk than direct contract work, so expect a marginally tighter rate.
- Setup usually takes around one week. Funds are then available within 24 hours of raising an invoice.
- Most platform-funding lenders will ask for your platform login so they can verify jobs directly. This is normal.
- We do not charge a broker fee on invoice factoring.
Haulage Invoice Factoring & Invoice Finance
In recent years the UK logistics and haulage sectors have been revolutionised, with the introduction of tech platforms.
Anyone can now go into the platforms and bid for work on a daily basis.
However many of the jobs on there are paid on terms of 30 to 45 days, and this can leave a huge gap in cashflow. Especially with fuel bills and drivers wages to pay.
One potential solution to this issue is an invoice finance product like factoring or discounting.
| Item | Typical position |
|---|---|
| Advance rate, direct contract work | 85% to 90% of invoice value |
| Advance rate, platform work | Slightly tighter, platform work carries marginally more risk |
| Service fee | 0.5% to 3% of invoice value |
| Discount charge | Base rate plus roughly 2% to 5% a year on funds drawn |
| Bank of England base rate | 3.75%, held on 17 September 2026 |
| Setup time | Around one week with a broker |
| Speed of funds once live | Within 24 hours of raising an invoice |
| Platform login required | Usually yes, for job verification |
| Sector risk rating | Low. Haulage is well regarded by invoice finance lenders |
Ranges reflect the UK market and our lender panel as at September 2026 and are not a quote. Bolton Business Finance Ltd is not authorised by the Financial Conduct Authority and arranges non-regulated, business-purpose finance only.
Can You Invoice Factor Haulage Debt?
The short answer is yes, you can use invoice factoring to release money tied up in unpaid haulage invoices. These could be with direct clients or work done via a haulage tech platform.
However it is important that you use a factoring company that understands how your invoicing works and also the process for invoicing.
There are invoice finance companies that specialise in providing both factoring and discounting to transport companies.
Haulage is one of the sectors invoice finance lenders like most. A signed delivery note proves the job was done, your customers are typically freight forwarders, retailers and manufacturers rather than consumers, and there are none of the retentions or staged payments that make construction difficult to fund. That combination means haulage prices below a general SME book rather than above it.
Fill in the form below to get a quote or call 0161 546 9128
Funding Work Booked Through Haulage Platforms
Platform work is fundable and we place it regularly, but it does not behave the same way as direct contract work and it is worth knowing why before you apply.
Lenders treat it as slightly higher risk. The customer relationship is shorter, the payment terms are set by the platform rather than negotiated, and disputes over damage, shortage or late collection are more common than on a standing contract. None of that stops a facility being agreed. It usually means a marginally tighter advance rate than the same operator would be offered on direct work.
The bigger practical issue is which lenders will look at it at all. Some high street banks are not familiar with how haulage and courier platforms work and will not fund against them. Specialist funders will, and several have built verification processes specifically for it, which is why they ask for platform access.
Self billing
Many larger hauliers and freight forwarders self bill, raising the invoice on your behalf. It is standard practice and not a barrier, but it makes verification of the debt harder for a lender because the paperwork originates with your customer rather than with you. Some funders handle it routinely, others will decline or reduce the advance rate. Flag it at the outset so the case goes to lenders who can write it.
How Does Invoice Finance Work With Haulage?
With the help of a broker, it usually takes around one week to set up a new invoice factoring facility and pay out your first invoices. Below is the usual process:
- Get an Invoice Finance Quote
- Submit Application
- Sign Agreement & Provide Identification
- Provide any Haulage Platform Login details to finance company
- Complete your first new job
- Once approved funding will be released
Step four is the one hauliers query most often. The funder is not taking control of your account. They use read access to confirm that jobs on the ledger were actually booked and completed, which replaces the delivery note verification they would do on direct work. It is what makes platform funding possible at a sensible advance rate rather than at a penal one.
What Haulage Factoring Costs
Two charges make up the bulk of it. The service fee is a percentage of invoice value and covers running the ledger and chasing payment. The discount charge is interest on the money you have drawn, calculated daily.
| Item | Figure |
|---|---|
| Monthly invoicing | £60,000 |
| Annual turnover | £720,000 |
| Advance rate | 85%, so up to £51,000 available |
| Service fee at 1.2% | £720 a month |
| Discount charge, base plus 3% on £45,000 average drawn | About £253 a month |
| Total monthly cost | About £973 |
| Annual cost as a share of turnover | About 1.6% |
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 depend on turnover, customer spread, trading history and how much of your ledger is platform or self billed work. The discount charge is calculated daily on what you actually draw, so drawing less costs less.
Factoring Or Discounting For Hauliers
| Feature | Factoring | Invoice discounting |
|---|---|---|
| Who chases payment | The funder | You do |
| Do customers know | Yes, they pay the funder direct | No, it is confidential |
| Service fee | Higher, credit control is included | Lower |
| Typical requirement | Open to smaller and newer operators | Usually 2 years trading and higher turnover |
| Best for | Operators without a credit control function | Established hauliers with in house admin |
Most smaller haulage operators start on factoring and move to discounting as turnover grows and the back office develops. There is no penalty for starting on factoring, and having the funder chase payment is often worth more than the fee difference when you are running vehicles rather than sitting in an office.
Operator licence financial standing
If you hold an O licence, an invoice finance facility can help you evidence financial standing to the Traffic Commissioner, because undrawn availability against your sales ledger is accessible funding. The current levels are £8,000 for the first vehicle and £4,500 for each additional vehicle on a standard national or international licence, assessed on the vehicles your licence authorises rather than the number you run. We cover this in more detail on our trucking invoice factoring page.
Haulage Factoring FAQ
Can you factor invoices from a haulage platform?
Yes. Work booked through a haulage or freight exchange platform is fundable, though lenders treat it as slightly higher risk than direct contract work because the customer relationship is shorter and disputes over damage or shortage are more common. Expect a marginally tighter advance rate. Some high street banks will not fund platform work at all, so the panel matters.
Why does the funder want my platform login?
To verify that jobs on your ledger were actually booked and completed. On direct contract work a funder verifies against delivery notes. On platform work the booking record does the same job. It is read access for verification, not control of your account, and it is what allows platform work to be funded at a sensible advance rate.
How long does it take to set up haulage factoring?
Around one week with a broker, from quote through to first drawdown. Once the facility is live, funds are usually available within 24 hours of raising an invoice.
What advance rate will a haulage company get?
Typically 85% to 90% of invoice value on direct contract work, which is at the top of the 70% to 90% market range. Haulage prices well because the debt is easy to evidence and the customers are usually creditworthy. Platform work and self billed ledgers may be offered slightly less.
Should a haulier choose factoring or invoice discounting?
Factoring includes credit control and is open to smaller and newer operators. Invoice discounting is confidential and cheaper, but usually requires around two years trading, higher turnover and an in house credit control function. Most smaller haulage businesses start on factoring and move across as they grow.
What does haulage factoring cost?
A service fee of roughly 0.5% to 3% of invoice value plus a discount charge of about base rate plus 2% to 5% a year on funds drawn, calculated daily. For a haulier invoicing £60,000 a month at an 85% advance, that works out at roughly £973 a month, or about 1.6% of turnover.
Apply For Haulage Factoring Today
Tell us how you invoice
As independent invoice finance brokers, we can source the funding you require. We are experienced in factoring, discounting and the logistics sector. Send us your monthly invoicing, your payment terms, and whether your work is direct, platform booked or self billed, and we will come back with what is available across our panel. There is no broker fee on invoice factoring.
Related pages
- Trucking invoice factoring, covering costs in detail and operator licence financial standing
- Courier finance, invoice finance and van and truck asset finance for courier operators
- The costs of factoring, every charge a facility can carry
- Haulage finance for HGVs, trailers and vans, on our sister site Finance Assets, for funding the vehicles rather than the invoices
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.
Marcus is also the author of UK Commercial Finance (2026), a commercial finance book for UK business owners and property investors.
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.