Hauliers often pay fuel, drivers and vehicle costs before customers settle invoices, so invoice factoring or discounting can release cash tied up in those invoices while asset finance spreads the cost of vehicles and equipment. This page explains these routes and how they work for haulage and logistics businesses.
A load is delivered, an invoice is raised and the customer pays on agreed terms. Fuel, wages and maintenance need paying while the invoice remains outstanding. This creates a gap between doing the work and receiving payment.
Invoice finance brings forward cash tied up in business-customer invoices. Asset finance spreads the cost of vehicles and equipment, or releases cash from assets already owned. Revolving credit and short-term loans address other capital requirements.
Start with the requirement: unpaid invoices, vehicles or an existing asset base. We design the deal first. All finance is subject to status.
Factoring is standard practice in haulage. A specialist factor advances cash against your invoices and takes over credit control, including chasing and collecting payment from your business customers.
Customers are aware of the arrangement. Once the customer pays the factor, the remaining balance less fees is released back to you.
Explore invoice factoringWith invoice discounting you retain your own sales ledger, credit control and customer relationships. You borrow against outstanding invoices, and customers settle in the normal way. The arrangement remains confidential.
As invoices settle, headroom becomes available for new invoices. The choice includes whether your business or a factor should manage collections.
Explore invoice discountingAsset finance spreads the cost of vehicles, plant, machinery, technology and equipment. Facility types include hire purchase, finance lease, operating lease and refinance.
For a purchase, the lender pays the supplier directly. Payments follow the agreed term. With hire purchase ownership typically follows the final payment; leases usually do not transfer ownership.
Explore asset financeA revolving credit facility is a committed, flexible line that can be drawn, repaid and redrawn as needs evolve, without a fixed drawdown schedule.
Explore revolving credit facilitiesA short-term business loan is a fixed facility for CAPEX, working capital or a specific opportunity, repaid over an agreed term. We prepare the opportunity before approaching lenders.
Explore short-term business loansAsset-based lending is a revolving facility secured against a combined pool of debtors, stock, plant and property. The deal is designed first: size, tenor, security and covenants.
Explore asset-based lendingThese circumstances describe possible uses, not guaranteed eligibility. All finance is subject to status and provider criteria.
| Product | Feature | Indicative figure |
|---|---|---|
| Invoice factoring | Advance rate | 75–90% of invoice face value |
| Factoring fee | 0.75–2.5% of invoice value | |
| Discount charge | 1.5–3% over base rate (daily) | |
| Asset finance | Interest rate | 3–15% per annum (asset and profile dependent) |
| Term | 12–60 months; longer for high-value assets | |
| Deposit | 10–20% with some lenders |
All figures are indicative and subject to status.
We have no balance sheet to protect and no product to push. We work independently, matching the requirement to the right lender rather than starting with a product to sell. The conversation starts with what your business needs, not with an existing lending product.
We take your opportunity to the right lenders simultaneously, creating genuine competition and compressing timelines. This describes how we approach the market, not a promise about an approval or drawdown date. The facility is structured before the opportunity is put to the right lenders.
We design the deal before we approach a lender: size, tenor, security and covenants. The structure comes first, so the opportunity we take to market reflects what your business needs. We then match the requirement to the right lender without unnecessary structure or cost.
Tell us about your business and what you are looking to achieve. The starting point is the requirement rather than a finance product. We take the time to understand your business properly and tell you which funding discipline fits before approaching a lender.
We identify the right structure and prepare your opportunity before approaching lenders. The deal is designed first: size, tenor, security and covenants. We match the requirement to the right lender without unnecessary structure or cost, keeping the business need at the centre of the process.
We bring back competitive options from lenders, presented clearly and without bias. You choose. The offers are reviewed against the requirement and the structure of the facility, rather than treating every offer as the same product. We tell you which fits before approaching a lender.
We manage the process through to drawdown, coordinating lenders, lawyers and paperwork. This is the final step in the same process that began with understanding the business need. Our role continues through the placement of the facility, rather than ending when offers are presented.
Oku Financial arranges invoice factoring and invoice discounting, which release cash tied up in invoices to your business customers, and asset finance for vehicles and equipment. Revolving credit facilities, short-term business loans and asset-based lending are also available.
Yes. Oku Financial describes haulage as a sector where invoice factoring is standard practice.
With factoring, a specialist factor manages credit control and your customers are aware. With invoice discounting you keep your own sales ledger, so the arrangement stays confidential.
Asset finance helps businesses acquire vehicles, plant, machinery or technology through hire purchase, finance lease or operating lease, spreading the cost over time and matching repayments to the income the asset generates.
Invoice factoring typically has a fee of 0.75–2.5% of invoice value and a discount charge of 1.5–3% over base rate (daily), with an advance of 75–90% of invoice face value. Actual terms depend on the lender and your business. All figures are indicative and subject to status.
No. Oku Financial is a commercial finance broker. We work with a panel of lenders to find funding for UK businesses.
Talk to us about your fleet and your debtor book
We typically receive a commission from the finance provider (either a fixed fee or a fixed percentage of the amount you receive) upon successful placement. Different providers pay different rates.