CFACommercial Funding Advisory

Security & Transport Services

Business Funding for Courier Services

Courier services compete on speed and reliability, and both require investment in vehicles, drivers, and dispatch technology. Same-day and rush delivery services command premium pricing, but the operational costs are high. Each driver needs a vehicle, insurance, and a mobile device. The shift toward last-mile delivery for ecommerce companies has created new revenue opportunities, but these contracts require you to staff up fast and deliver at scale from day one.

Common Uses

What Courier Services Use Funding For

  • Purchase or lease delivery vehicles including cargo vans and box trucks
  • Hire delivery drivers and dispatch coordinators for new service contracts
  • Invest in route optimization software, GPS tracking, and proof-of-delivery systems
  • Fund commercial auto insurance and workers' compensation premiums for a growing driver fleet

Funding Options

Best Funding Types for Courier Services

Vehicle Financing

Finance cargo vans and delivery vehicles with the vehicles as collateral. Adding vehicles is the primary way courier companies grow, and fleet financing programs offer volume discounts and streamlined approval for multi-vehicle purchases.

Working Capital Loan

Fund the rapid hiring and onboarding required when you win a new delivery contract. Last-mile contracts require you to have drivers and vehicles ready on the start date, and a working capital loan covers the gap between mobilization and first payment.

Invoice Factoring

Factor outstanding invoices from corporate and ecommerce clients who pay on net-30 terms. Courier companies with multiple high-volume accounts can factor selectively based on which clients pay slowest.

What Lenders Look For

Qualification Notes for Courier Services

DOT registration (if operating vehicles over 10,000 lbs), commercial auto insurance, and proper business licensing are required
Lenders evaluate your delivery volume, average revenue per route, and client contract terms
Companies with dedicated route contracts from healthcare, legal, or ecommerce clients show more predictable revenue than on-demand-only operators

Related Industries

Related Security & Transport Services Funding

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