Asset Finance for Transport & Logistics

Asset finance lease options can be incredibly valuable in the transport and logistics sector.

Finding the right funding solutions to fund the assets that your business needs can be tough, but good logistics finance can make all the difference.

The transport and logistics industry is the pillar of the UK economy for many other sectors, so it's important companies have enough cash flow within a business to invest in progress.

Get in touch today, to find out about the best finance solutions and spread the cost for your company with asset finance.

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What is Transport & Logistics Asset Finance?

Asset finance for the transport and logistics industry can cover three particular financing lease options, all focused on the same goal: acting as funding solutions that lead to an easy way to get typical transport assets or to fund important equipment that your business needs to succeed.

This tends to mean various vehicle types, but a transport and logistics industry business may focus on using it to fund assets like repair and maintenance equipment or to purchase transport specialists and other support options.

How does Transportation Finance Work?

Transport and logistics finance focuses on providing funding solutions for your transport and logistics sector needs, whether that is leasing new vehicles or trying to purchase transport and logistics assets.

The specifics of each transport and logistics finance arrangement depend on what your business wants, the kind of business financing agreement you enter, and the businesses or leasing specialist team that you are working with.

Finance Products for the Transport and Logistics Industry

These are three ways to approach transport finance and logistics finance funding solution and spread the cost.

All three offer financing in a different way and are all useful for different parts of the transport and logistics sector.

Equipment Leasing for Logistics Company

Leasing solutions for standard equipment leasing is always the easiest option but not always the best.

A generic equipment lease can provide new vehicles (including commercial vehicles) and a range of other assets meant for the logistics industry, providing easy support if you need something specific in the short term.

Hire Purchase Transport Finance

Hire purchase transport finance is all about spreading the cost of vehicles into a longer-term hire purchase cost, improving cash flow.

The customer is leasing the vehicles like normal but then pays the final hire purchase cost at the end of the leasing period to own the vehicle for good.

This allows businesses to get transport and logistics equipment from increased cash flow, that they would not be able to purchase outright, something that new businesses can really benefit from.

Finance Leases

A finance lease focuses on trying to release working capital from your current fleet of vehicles or unique assets.

We buy them from you to release working capital, which you can then use to buy new equipment, vehicles or other support assets.

Later on, you can re-buy the equipment from us under a new finance deal, allowing you to get your current fleet back easily.

Operating Lease

A good operating lease enables customers to pay regularly for something they are using (such as trucks or other vehicles) and then return it at the end of the lease.

This is a low-cost option with no set cost amount and can be a good way to get commercial vehicles if you are not sure how long you will need them for.

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What are the Costs for Transport Finance?

Transport and logistics sector asset finance tends to have an interest rate of between 2% and 20%.

However, like any industry, finance interest rates can vary heavily based on a range of factors.

What Influences Costs?

These factors include things like:

The age and size of your business.
Your specific niche and industry within the transport and logistics sector.
The companies and groups that you are getting finance from.
Your total requested financing amount.

Advantages of Transport & Logistics Finance

Financing equipment for your industry in this way can be a much cheaper way of getting items that new (or small) companies can't usually afford.

For example, getting trucks and other large delivery vehicles is a lot easier with financing.

What Transport Assets can be Financed?

We can provide access to a range of industry-wide equipment and vehicles, including:

Flatbed lorries
Articulated lorries
Low loaders
Wide load lorries
Vans
Lorry lifters
Forklifts
Telehandlers
Cranes
Storage and warehousing
Storage containers
Pallet crates
Manual pallet trucks
Tankers
Curtain-sided trucks

This can also include specialised gear, such as electric vehicles for clean air zones.

Get in touch today, to find out about the best finance solutions and spread the cost for your company.

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FAQs

Is Transport and Logistic Asset Finance Regulated in the UK?

All forms of asset finance, regardless of industry, are regulated in the UK - and have been since 2018.

The Standards of Lending Practice dictate how finance companies can treat customers and the kind of deals that they can make.

Is Finance Better than Purchasing?

Finance can be an easier way to get an asset that you could not afford otherwise, making it a great option for tackling expensive purchases and vital equipment that you need to succeed.

Is the Transport and Logistics Sector Suitable for Finance?

Transport and logistics is just one of many fields that can benefit heavily from finance options.

The more accessible important tools are, the better.

Summary

Finance can be invaluable for getting access to a huge pool of equipment, including things that your business simply would not be able to afford in normal circumstances.

If done correctly, finance can become a core part of how your business affords vital equipment, allowing you to push yourself into further tiers of growth with minimal effort.

If you want to know more about the kind of finance options that we can provide, get in touch with our experts to learn more about our work.

The sooner you try and tackle the problem, the sooner you can get the equipment that you need to expand your business operations.

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With years of experience, we can help you find the right finance solutions and equipment for your needs, as well as finance options that suit your business goals and budgetary limits.

When it comes to finance, there can be a lot of ways to tackle a wide variety of equipment hire types and arrangements and other lenders.

Our experts can make it much easier to get what you need when you need it.

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Please not we are commercial finance brokers, not a lender.

It's important to work with a company that's authorised and regulated by the financial conduct authority (FCA).