2026 Complete Guide
5 ways to finance a logistics or delivery business: fleet financing, invoice factoring, SBA 7(a), credit lines and term loans. Amounts, rates and timing for each.
Logistics & Delivery financing
Each serves different logistics and delivery business needs
Best for: Delivery vehicles, cargo vans, forklifts, warehouse equipment, route trucks
Best for: Delivery companies waiting 30–90 days on shipper, retailer, or marketplace invoices
Best for: Acquiring a logistics company, warehouse facility, major fleet expansion $300K+
Best for: Fuel, insurance, driver payroll, peak season surge, emergency operational costs
Best for: Technology upgrades, route expansion, hiring drivers, any growth capital need
Side by side
| Loan type | Amount | Rate | Term | Approval |
|---|---|---|---|---|
| Equipment / Fleet Financing | $25K–$2M | 6.5–20% APR | 2–7 years | 1–5 days |
| Invoice Factoring | $10K–$2M | 1.5–5% per 30 days | Per invoice (30–90 days) | 24–72 hours |
| SBA 7(a) Loan | $50K–$3M | 8.5–11.5% APR | 10–25 years | 30–60 days |
| Business Line of Credit | $10K–$500K | 8.75–45% APR | Revolving | 3–14 days |
| Business Term Loan | $25K–$500K | 7.5–45% APR | 1–5 years | 3–14 days |
Typical ranges, updated September 2026. Your terms depend on your revenue, credit, time in business and the lender.
Worked example
Delivery contracts often run shorter than vehicle loans. Example: a company wins a two-year route contract that requires eight cargo vans at $55,000 each. Assumptions for illustration only: 90% financed on a 5-year loan at 9.5%, computed with the payment formula of our commercial mortgage calculator.
| Amount | |
|---|---|
| Eight vans | $440,000 |
| Financed (90%) | $396,000 |
| Monthly payment, 5 years, 9.5% | $8,317 (about $1,040 per van) |
| Loan balance when the 2-year contract ends | about $259,600 |
If the contract is not renewed, about $259,600 is still owed on vans you may not need. Before you sign, compare that balance with what the vans would sell for after two years, ask about a shorter term or a lease with a return option, and make sure the contract’s rate covers the payment, insurance and maintenance per route. Lenders will ask for the contract itself and how long the customer has used outside carriers.
FAQ
Common questions about logistics and delivery company financing
Fleet/vehicle financing covers delivery vans and cargo vehicles (1–5 days, 600+ credit). Invoice factoring provides immediate cash against shipper and retailer invoices (24–72 hours). SBA loans are ideal for acquiring a logistics company. Lines of credit cover fuel, driver payroll, and peak season surges.
As closely as you can. Eight $55,000 vans financed 90% over five years at 9.5% cost about $8,317 a month, and about $259,600 is still owed after two years. If the contract runs two years, compare that balance with the vans’ resale value, or look at a shorter term or a lease with a return option.
Invoice factoring converts outstanding delivery invoices to immediate cash — 85–95% advance within 24–72 hours at 1.5–5% per 30 days. No debt added to balance sheet. Approval based on your client's (Amazon, Walmart, etc.) credit, not yours. Lines of credit also work well for predictable recurring gaps like fuel between delivery payment cycles.
Amazon Delivery Service Partner (DSP) contracts require fleet investment ($50K–$500K+). Equipment/fleet financing covers the vehicles with fast approval (1–5 days). SBA loans can cover larger fleet needs. Some lenders have specific DSP programs. Amazon's DSP onboarding team can point you toward preferred financing partners.
Equipment/fleet financing is the standard — approval in 1–5 days, 600+ credit, vehicles serve as collateral. Most lenders finance 80–100% of vehicle cost. Volume purchases (5+ vehicles) may qualify for fleet rates. SBA loans work for larger expansions when you need working capital alongside the vehicles.
Fleet financing accepts 600+. Invoice factoring accepts 500+ (client credit is primary). Lines of credit need 650+. SBA loans require 680+. New logistics companies with strong contracts but limited credit history can use invoice factoring effectively — the shipper or retailer's creditworthiness carries the approval.
Set up a business line of credit by Q2 — draw in September/October for extra drivers, fuel reserves, and temporary vehicles. Repay after the Q4 rush. Invoice factoring accelerates payment on holiday-season invoices. Planning 90 days ahead is the key.
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