Revenue-Based Financing for Trucking Companies
Revenue-based financing gives a trucking company a lump sum repaid as a share of its deposits, so a thin freight week means a smaller payment. It suits carriers whose revenue swings with seasons, fuel prices and broker demand. The total to repay is set up front, so a strong freight stretch pays it off sooner rather than cheaper.
How revenue share fits freight money
No card batches to split
Most trucking revenue arrives by ACH or check from brokers, shippers and factors, not card sales. That means the funder totals your deposits over a week or a month and debits its share, rather than taking a cut at the card processor.
Factoring deposits count differently
Money a factor sends you is an advance on invoices, and the fee the factor keeps never reaches your account. Ask whether the funder counts factored deposits at full value, since the answer shapes both the payment and the size of the offer.
An 8% share through a slow month
A trucking company with $120,000 in monthly revenue gets $66,000; it repays $82,500 at 8% of what comes in.
| Month | Revenue | Remittance at 8% | Remittance as a share |
|---|---|---|---|
| An average month | $120,000 | $9,600 | 8.0% |
| A slow month, 17% under average | $99,600 | $7,970 | 8.0% |
The remittance shrinks to $7,970 in a slow month, and payoff runs near 9 months at average revenue. With a 2-point yearly range in BLS employment for truck transportation (NAICS 484), the slow month to test is the one on your statements.
When it works for a carrier
- Revenue that swings with produce season, holiday freight or fuel costs.
- A defined use, like an engine overhaul or a trailer deposit, with a clear payback.
- An owner who wants the payment to shrink automatically when loads slow down.
What to compare it against
A fixed weekly advance payment is simpler to plan around, but it doesn't bend. Factoring more invoices turns receivables into cash without adding a payment at all. A revenue share sits between them. Line up all three on total cost, how fast cash arrives and what each does in a slow month.
Contract points to check
The percentage, the repayment total, what counts as revenue, whether a minimum payment applies, and how the share is reconciled if deposits fall.
Quick answers
Can a trucking company use revenue-based financing?
Yes. Because carriers rarely have card sales, the funder usually calculates its share from total deposits each week or month and debits that amount. The payment follows your freight revenue up and down until the agreed total is repaid. Bring bank and factoring statements so the funder can see the pattern.
How does revenue-based financing compare to factoring for truckers?
Factoring sells specific invoices for cash now, and the broker pays the factor. Revenue-based financing is a lump sum repaid as a share of all deposits. Factoring adds no payment but costs a fee on every invoice. Many carriers use factoring for steady cash and a revenue share for one-time needs.
What happens to the payment in a slow freight month?
It drops with deposits. If revenue falls by a third, the payment falls by about a third too, because it's a percentage. The balance takes longer to clear, but the total you repay doesn't change. Check the contract for any minimum payment that applies in very slow months.
More for trucking companies
- Same-day merchant cash advance for trucking companies
- Second position MCA for trucking companies
- MCA consolidation for trucking companies
- Business line of credit for trucking companies
- How funders read trucking companies
- Revenue-based financing: how it works
Run your own numbers with the factor rate calculator.
Want to see what fits a trucking company like yours?
Tell us your slow months and your open advances, and we'll shop the file with funders whose programs fit. Call 877-FUND-654 with any question. We call you back, usually the same business day, and we always talk with you before we shop your file.