- Vehicle finance size
- £20k – £5m fleet facilities
- Deposit
- Typically 0-20% depending on credit profile
- Invoice finance advance
- Usually 80-90% of invoice value
- Term
- 3-6 years for HGVs/trailers
Fleet renewal and vehicle depreciation
HGVs and trailers depreciate steadily, and running an ageing fleet increases maintenance downtime and fuel cost while newer vehicles carry higher finance repayments. Asset finance lets operators refresh the fleet in stages against forecast utilisation rather than a single large capital outlay, and specialist commercial vehicle lenders price residual values more accurately than generalist lenders.
Cashflow gaps from extended customer payment terms
Haulage invoices are frequently paid on 45-60 day terms while fuel, driver wages and vehicle finance are due weekly or monthly, creating a structural cash gap regardless of profitability. Invoice finance against the debtor book converts that gap into available cash, typically releasing 80-90% of invoice value within a day or two of invoicing.
Fuel cost volatility and margin pressure
Fuel is usually the largest single cost line and its volatility can turn a profitable quarter into a loss-making one even with steady volumes. Lenders assessing haulage businesses look closely at fuel surcharge clauses in customer contracts and recent margin trends rather than headline turnover.
Depot and yard premises finance
Owning a depot with secure yard space and maintenance facilities avoids rent increases and gives control over expansion, but valuations need to reflect yard size, weighbridge access and planning use class for HGV parking — a standard industrial valuation can miss these specifics.
Driver shortages and operator licence considerations
Lenders financing fleet growth will sometimes ask about operator licence headroom and driver availability, since additional vehicles are only useful if they can be crewed and operated within licence conditions.
Frequently asked
Can I finance a mixed fleet of new and used vehicles in one facility?
Yes, most commercial vehicle lenders will fund a mix within a single facility, though pricing and term vary by vehicle age and condition.
How quickly does invoice finance release cash for haulage invoices?
Typically within 24-48 hours of the invoice being raised and verified, which is usually the main appeal for haulage operators managing weekly outgoings.
Do I need a large deposit for HGV finance?
Not always — established operators with a clean credit history sometimes secure 0% deposit deals, though newer businesses typically need 10-20% down.
Can I finance a depot purchase alongside fleet finance?
Yes, they're usually arranged as separate facilities (commercial mortgage for the depot, asset finance for vehicles) but we coordinate both so the overall gearing makes sense to lenders.
Does fuel price volatility affect my ability to get finance?
Lenders factor it in when assessing margin stability, but a well-structured fuel surcharge pass-through to customers reassures underwriters considerably.
Fund your fleet and your working capital together
Call 0345 2690628 to structure vehicle finance and cashflow funding as one plan.
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