Why freight is a cash-hungry business
Every kilometre a truck travels costs money upfront. Diesel is paid at the pump or on a fuel card account. Road user charges are bought in advance, in blocks of distance, before the kilometres are driven. Tyres, servicing, certificates of fitness and repairs arrive on their own schedule. Drivers are paid weekly.
Customers, on the other hand, are invoiced after the job — often monthly — and pay on the 20th of the month following. For a small fleet, that can mean carrying six weeks or more of running costs at any time.
The seasonal shape of freight in New Zealand
Freight demand follows the economy’s calendar:
- Kiwifruit and apple harvest (roughly March to June) drives heavy movement to packhouses, coolstores and the Port of Tauranga and Napier.
- Vintage in March and April keeps wineries and bulk wine carriers busy in Marlborough, Hawke’s Bay and Central Otago.
- Forestry and log exports fluctuate with overseas demand.
- Retail peak from October to December fills courier and linehaul networks.
- Construction freight rises and falls with the building cycle.
Busy seasons are good news, but they also mean more fuel, more RUC, more drivers and more wear — all paid before the extra revenue arrives.
What freight businesses use funding for
- Fuel and RUC during peak months.
- Driver wages and subcontractor payments between customer payment runs.
- Unexpected repairs so trucks aren’t parked up waiting on cash.
- Tyres and scheduled maintenance ahead of a busy season.
- Taking on a new contract that needs more capacity from week one.
- Tax timing, including GST and provisional tax after a strong year.
Which structure fits?
A revolving line of credit is usually the best match for running costs: draw for fuel, RUC and wages; repay as customers pay. It suits businesses usually trading six months or more, with the limit based on turnover and bank statements. Weaker credit is considered.
For bigger one-off needs — clearing a tax balance, funding a depot fit-out, or buying a competitor’s run — a property-secured loan of $20,000 to $1m, secured on New Zealand property you or a supporting party own, provides a larger lump sum with no financials or tax returns needed for the initial assessment.
Keeping the gap under control
- Invoice weekly rather than monthly where customers will accept it.
- Include fuel adjustment clauses in contracts so fuel price rises flow through.
- Watch customer concentration — one big slow payer can stall the whole fleet.
- Plan RUC purchases around cash flow rather than buying large blocks at the wrong time.
- Track cost per kilometre so you know which work is actually profitable.
Example scenario
Example scenario — illustrative only. A Bay of Plenty cartage company runs six trucks and doubles its hours during kiwifruit harvest. Its packhouse customers pay on 20th-following terms. Each March the owner draws on a line of credit to cover extra drivers, fuel and RUC, then repays it between June and August as harvest invoices are paid.
Pricing
Every facility is priced on your individual circumstances. We don’t publish rates, and we look for the sharpest option available for your business.
Keep the wheels turning
Start the 60-second enquiry or call 09 875 4577. It’s free, it doesn’t affect your credit score, and a lending specialist will call you back.