Transport and logistics funding: fuel, wages and rego before the invoice clears

A truck standing still earns nothing and costs everything. The driver’s wages, the registration, the insurance and the finance on the vehicle carry on whether the wheels turn or not. For transport operators, the discipline is keeping the vehicles moving and the cash from running dry between the load and the payment.

How does cash flow behave in transport?

Costs are weekly and relentless: fuel, wages, tolls, tyres, servicing, registration, insurance. Revenue arrives on the customer’s schedule, often 30 to 60 days after delivery. That gap means a transport business is permanently financing its customers’ freight.

The bigger the operation grows, the bigger the float. Adding a truck adds revenue, but it also adds a month or two of running costs that must be funded before the first invoice clears.

Add to that:

• Concentration. Many operators rely on a handful of customers, so one slow payer hurts.
• Unplanned repairs. A blown engine or a failed compliance check cuts income and adds cost at once.
• Fuel price swings, which move costs faster than rates can be reset.
• Tax timing. GST and PAYG fall due on fixed dates, whatever the state of your debtors.

How big is the float?

The sum is simple: weekly costs multiplied by the weeks customers take to pay.

An illustration with no real operator: a two-truck business has running costs of about $9,000 a week. Its customers pay in around 45 days, roughly 6.4 weeks. The float is about $57,600. If the owner has $20,000 in the bank and needs $10,000 for a tyre replacement, the gap is around $47,600.

The Dough gap calculator does this with your own figures. Our guide on days to get paid shows why trimming even a week from the wait matters so much.

Which funding suits a transport business?

Need	Likely fit
Float while freight invoices clear	Line of credit or working-capital loan
A single large repair or compliance cost	Short-term loan
Adding a truck or trailer	See equipment funding; loan, lease or property-backed
Winning a major contract	See big order funding
BAS and fuel-related tax timing	See BAS and GST gap loans

For trading businesses, unsecured funding is typically $5,000 to $500,000, sized on turnover and bank statements. Property-secured funding runs from $20,000 to $5,000,000 for owners with property.

Lease or buy the vehicle?

Business.gov.au sets out the trade-offs. Leasing generally means lower upfront cost and easier upgrades, but monthly payments can add up and you may owe the full term even if you stop needing the vehicle. Buying means higher upfront cost but ownership, flexibility to modify or sell, and responsibility for repairs. If a loan is secured against the vehicle, it can be repossessed for missed repayments. Dealer finance may carry extra fees and a balloon payment at the end.

For GST-registered businesses, credits can generally be claimed for business use of vehicles. A good accountant will model this for your situation before you sign anything.

What do lenders look for in transport?

• Bank statements showing regular freight deposits and consistent running costs.
• A spread of customers, or an honest explanation if it is concentrated.
• Fleet and compliance basics: registrations, insurances, licences.
• A clear purpose such as float cover, a repair or a vehicle.
• How long you’ve been operating under your ABN.

If a large part of your income comes from one customer, say so up front. It does not rule you out, but it helps the lender understand the risk.

How do I protect the business?

• Keep a repairs buffer. One breakdown can cost more than a month’s margin.
• Chase invoices on day one of lateness. The staged process on business.gov.au starts with a simple reminder.
• Watch customer concentration. If one account is over half your revenue, work on a second.
• Separate the tax money. Move GST and PAYG into a different account as you go.
• Review rates against fuel and costs at least every quarter.

What does a fleet-growth decision look like?

Adding a second or third vehicle is the classic growth moment. The sums should be done before the purchase, not after. Estimate the extra revenue per month the vehicle can realistically bring, subtract fuel, driver wages, registration, insurance, servicing and finance, and see what remains. Then ask how long it takes for the new contracts or loads to arrive, because that is the period the business funds from its own pocket.

A common mistake is buying capacity ahead of confirmed work. Another is assuming the new vehicle will be as busy as the old ones from day one. Build the plan on a slower start, and the decision will survive reality. Pair the purchase decision with the funding decision, not afterwards.

What about rego, tolls and other lumpy costs?

Registration, insurance and compliance inspections tend to land as large annual or quarterly payments rather than weekly drips. Tolls and fuel cards may be billed monthly, in arrears. These lumps are predictable, so put them on a calendar and set money aside. A simple twelve-month grid of known dates, with the amounts beside them, tells you which months will be tight long before they arrive.

Next step

If the wheels are turning and the cash is thin, tell us about it. Share the fleet size, your customers’ payment terms, the amount and the purpose. A lending specialist reads it and rings you. There is no credit check just to ask, and your details are not sprayed over a long list of lenders.

Real figures from your statements and your debtors list make the first call quick. See if you qualify.