Should I use a line of credit or factoring?

Many carriers should use both. Factoring is faster and works when you have no history, but it prices every dollar and notifies your customers. A line is cheaper on predictable contract freight. A common split is factoring for spot loads and a line for the dedicated book.

How many trucks do I need before this makes sense?

There is no hard minimum, but below roughly five trucks the fixed costs of a facility usually outweigh the savings versus factoring. Most carriers who benefit are running ten or more units with some contract freight.

Can I have a line and equipment loans at the same time?

Yes, and most growing carriers do. Equipment notes are secured by the trucks; the line covers operating cash. Lenders account for the equipment payments as fixed obligations when sizing the line.

Do my brokers or shippers find out?

No. Unlike factoring, a line of credit involves no notice of assignment and no change to your invoicing or remittance instructions. Your customers pay you exactly as they always have.

Fleet revolving credit

Line of Credit for Trucking Companies

Most carriers meet their working capital need through factoring, and for spot-heavy operations that is often correct. But factoring prices every dollar as a transaction and puts your funding relationship in front of your customers. A revolving line does neither: you draw when fuel and maintenance hit, repay when settlements land, and your brokers never see a notice of assignment.

Quick answer

Business line of credit for trucking and logistics operators. Cover fuel, maintenance, and insurance between settlements without factoring your invoices.

Get a structure for this situation

Two quick steps. An advisor responds within 24-48 hours.

You are probably here because

Fuel and maintenance hit weekly while settlements arrive on a 30-45 day cycle

You are paying factoring fees on freight you could comfortably carry yourself

You want capacity for insurance renewals and unplanned repairs without a new application each time

You are running direct shipper contracts and would rather not notify them of an assignment

How we structure it

Line size$75K – $5M

InterestCharged only on the drawn balance

ConfidentialityNo customer notification, unlike factoring

Time to close1 – 2 weeks

What we need to give you an answer

Have these together and you will know where you stand in 24-48 hours instead of three weeks.

Trailing 6-12 months of settlements or bank statements

Fleet size, authority status, and insurance in force

Customer concentration and the mix of direct contract versus brokered freight

Existing equipment note obligations across the fleet

How it played out

Replacing factoring on the contract book

A 26-truck dry van carrier was factoring everything at roughly 2.6% per invoice, including dedicated lanes with two direct shippers on clean net-30 terms. On $9.4M of annual revenue that was over $240,000 a year in fees. We closed a $900,000 revolving line against the direct-shipper book. The carrier kept factoring for spot loads where speed matters most and moved the contract freight to the line, cutting annual funding cost by more than half.