The forty-truck group that swapped its overdraft for a facility that scales.
Refinancing an overdraft into an invoice finance facility is the classic move at this size: the funding follows the ledger instead of the bank manager, and it grows with the work instead of against it.
- Facility£1.8m
- Advance rate90%
- OverdraftRepaid
The squeeze
Forty trucks produce a heavy weekly cost base: drivers, diesel, maintenance, insurance. The shippers on the other side paid on 60-day terms, and the £1.2m overdraft that bridged the two had become a permanent fixture the bank increasingly wanted reduced.
Growth requests from two major shippers would have added eight vehicles. Under the overdraft, that meant asking the bank for more at the exact moment it wanted less.
The facility
We introduced the group to a funding partner that refinances exactly this position: a £1.8m facility at 90% advance against the shipper ledger, drawn as PODs are submitted.
The overdraft was repaid in the first month. Funding now rises automatically with billing, so the eight additional vehicles were financed by the very contracts they serve.
Where it stands
The group runs forty-eight trucks, the bank relationship is back to day-to-day banking, and the ledger, not a credit committee, decides how much funding is available each week.
What changed.
£1.2m overdraft repaid in the first month
Funding rises automatically with billing, no credit committee
Eight trucks added on the back of the new contracts
Details anonymised and figures rounded to typical UK market ranges. Every facility depends on the funding partner's review of the specific business.
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