Two funding needs can sit behind one contract
Winning work may require an extra truck or trailer. The business may also need to cover fuel, wages and other expenses before the first customer payment. Those are connected needs, but they may call for different finance structures.
Prepare a costed operating plan that includes empty running, downtime and customer payment terms. Revenue estimates alone can hide the pressure on working capital.
Assess fleet resilience
List existing vehicle finance and the age and condition of the fleet. Think about how a breakdown or loss of a key contract would affect the proposed repayments.
If using invoice finance, explain major customer concentrations and any disputed accounts. One large customer can materially affect the timing and quality of receivables.
Useful preparation
- Vehicle and trailer purchase specifications
- Confirmed work and realistic revenue assumptions
- Operating costs per vehicle or job
- Customer payment terms and aged receivables
- An allowance for repairs and quieter periods
What to prepare
- Fleet and current finance schedule
- Quotes for new assets
- Contracts and customer concentration
- Cash flow and maintenance allowance
Common questions
Can one arrangement cover every fleet need?
Possibly, but it should not be assumed. Asset funding and operating cash flow may need separate structures.
Is a first truck assessed like a fleet replacement?
Not necessarily. The evidence available and the business history can be quite different.
General information only. Product terms and availability vary. Check the actual proposal and obtain advice appropriate to your circumstances.