Transportation & Logistics
Business Funding for Logistics Companies
Logistics companies operate on thin margins and long payment cycles. You are paying carriers, warehouse staff, and technology costs well before your shippers pay their invoices. Scaling a logistics operation means adding warehouse space, technology platforms, and people, all of which require upfront capital.
Common Uses
What Logistics Companies Use Funding For
- Fund warehouse lease deposits and racking systems for new distribution locations
- Invest in transportation management software and warehouse management systems
- Cover carrier payments while waiting 45 to 60 days for shipper invoices to clear
- Hire operations staff and account managers to support new client contracts
Funding Options
Best Funding Types for Logistics Companies
Invoice Factoring
Factor your freight invoices and shipper receivables to close the gap between paying carriers and collecting from clients. Logistics factoring companies understand the three-party payment dynamic and can fund quickly.
Business Line of Credit
Maintain a revolving credit facility to cover carrier payments and operational expenses during growth periods. A credit line gives you the flexibility to take on new shipper accounts without worrying about cash flow timing.
SBA 7(a) Loan
Fund larger investments like warehouse buildouts, technology platforms, or acquisitions of smaller logistics companies. SBA loans offer longer repayment terms and lower rates than conventional options, though the application process takes longer.
What Lenders Look For
Qualification Notes for Logistics Companies
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