Merchant cash advance for trucking
Trucking revenue arrives on invoices, not at a register. That changes how an advance fits. These are general considerations, not claims about any one funder.
Deposits come in lumps
Many carriers invoice shippers or brokers and wait weeks to be paid. Money arrives in a few large deposits instead of a steady stream. A daily payment, however, comes out every business day. In a month where a big invoice lands late, you can face a full month of payments without the deposit that pays for them. Check the longest gap between deposits in your last six months and ask whether your account could carry payments through it.
Invoice-heavy businesses have other options
If your problem is waiting on invoices, factoring is built for it. You sell the invoices and are paid in advance on them, and the cost follows how long the invoice takes to pay. It does not always cost less, but it matches the cash you are waiting on. Read MCA vs factoring before you decide.
Fuel and repairs
Fuel is the biggest swing in a carrier's costs, and it moves independent of what you are paid per mile. A diesel price jump takes margin from the same loads. Repairs arrive without warning and can park a truck for days. When you size an advance, use a month with high fuel and a repair, not an average month.
Seasons and lanes
Freight volume moves with the calendar, the lane and the customer. A carrier that depends on one shipper is exposed if that shipper cuts loads. Funders reading statements see the deposit pattern, and you should see it too: how much depends on your top customer, and what would happen to your payment if it paused.
What funders tend to review
- Recent bank statements, with deposits and ending balances.
- Negative balance days and returned items.
- Existing advances and payments.
- Time in business, often measured from authority or incorporation.
Requirements differ by funder. We check your answers against the minimums we screen for on the home page form before asking for a phone number.
Plan for the payment, not the pitch
Write down three numbers before you talk to anyone: the number of business days between your largest deposits, your balance on the day before a big deposit usually lands, and what leaves your account each week for fuel, insurance, payroll and truck payments. If the quoted payment is covered through your longest dry stretch without overdrawing, an advance is at least workable. If it only works when every invoice pays on time, it is a bet on your customers.
When to hold off
- Your cash gap is a few late invoices that will clear soon. Factoring or a short wait may cost less.
- One customer is most of your revenue and its payment timing is unknown.
- You would be adding a truck without the loads to fill it.
- You already carry other daily or weekly payments.
- You can get equipment financing at a lower total cost from a dealer or bank.
Whatever you choose, compare the total paid with what you receive. The cost guide and the calculator show how.