Trucking has one of the starkest cash-flow mismatches in business: fuel, maintenance, insurance and payroll run on weekly cycles, while shipper and broker payments often take 30–60 days.
The industry's funding tools are built around that mismatch : and around the fact that a trucking company's best collateral is its invoices.
Why factoring is so common in trucking
Invoices owed by creditworthy shippers and brokers are exactly the asset factoring companies want. For many carriers, factoring turns payment terms from 45 days into days : funding fuel and payroll without waiting.
The trade-offs are real: fees reduce collected revenue, and the factor's process becomes part of your customer relationships. Many carriers decide the trade is worth it; the ones who regret it usually didn't compare fee structures carefully.
Funding the fleet itself
Trucks, trailers and equipment finance well because they hold resale value. Equipment financing and leasing are the standard paths for fleet additions and replacements : with the equipment itself as collateral.
Other structures carriers use
- Working capital and revenue-based structures for general gaps
- Fuel programs and fleet cards (not funding, but they stretch weekly cash)
- Bridge structures for expansion timing
Frequently Asked Questions
Want to explore your options?
If this topic relates to a funding need you have, you can begin a funding request through Kennify's financing partner at any time.