What's a work source letter and do I need one?

It's a letter from a client or contractor confirming ongoing or upcoming work. It's usually the fastest piece of evidence for both asset finance and cashflow applications in this industry.

What if most of my revenue comes from one client?

It's not disqualifying, but lenders view it as a risk factor that can affect which lenders are willing to look at the deal and on what terms.

Can invoice finance cover 90 day payment terms specifically?

Yes, invoice finance is designed for exactly this gap, advancing a portion of the invoice value once the work is done rather than waiting the full payment term.

Industries / Transport & logistics

Finance for transport and logistics businesses

Most of your clients pay on 30 to 90 day terms, but your trucks, trailers and repayments don’t wait. The right finance keeps the business running in that gap.

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Transport and logistics businesses carry a specific kind of pressure: revenue is real, but it’s delayed. Clients on 30 to 90 day terms mean the work is done, the fuel and wages are paid, and the truck or trailer repayment is due, well before the invoice actually clears. Financing in this space is built around closing that gap, not the vehicles themselves.

Cashflow is the real constraint, not the asset

Keeping cashflow strong is what lets the business keep running day to day and keep meeting repayments on the trucks, trailers and equipment that generate the revenue in the first place. A fleet sitting idle because of a cash gap costs more than the finance ever would. Products like business overdrafts, lines of credit and invoice finance exist specifically to bridge the wait between completing a job and actually being paid for it.

What lenders want to see: consistency and spread

As with construction, lenders in this space are looking for consistency in turnover over time, and ideally, multiple sources of income. A transport business relying on one or two major clients carries real concentration risk: if one client fails to pay, or simply stops using the business, the impact on cashflow is immediate and severe. A spread of clients and contracts gives a lender confidence that one lost relationship doesn’t sink the whole business.

01Turnover consistency over 6 to 12 months matters more than a single strong month, lenders are assessing whether the pattern holds, not the peak.
02Multiple clients or contracts reduce concentration risk and materially improve how a lender views the application.
03A documented work source, ideally a signed work source letter, is often the single fastest way to support both asset finance and cashflow applications.

At a glance

Asset finance

Trucks, trailers, equipment

Genuinely straightforward to obtain in this industry. Have your work source letter ready as evidence of ongoing contracted work, it’s usually the deciding document.

Cashflow

Bridging 30-90 day terms

Overdrafts, lines of credit and invoice finance are built for exactly this wait. The goal is keeping repayments and running costs covered while invoices are still outstanding.

Risk profile

Client concentration

Lenders weigh how many clients you rely on as heavily as how much you turn over. A spread of contracts is worth more to an application than a single large one.

30 to 90 days

Can the business run until then?

The gap between completing a job and being paid for it is where most transport and logistics businesses actually feel the pressure, not in winning the work itself.

Which product fits which gap

Need	Typical fit
New or replacement truck, trailer or equipment	Asset finance, work source letter usually required
Bridging the wait on 30-90 day client terms	Invoice finance against outstanding invoices
Ongoing working capital buffer	Business overdrafts or lines of credit
One-off cashflow gap, e.g. a large repair or fuel spike	Unsecured business loans

Why work with a broker instead of comparing lenders yourself?

Different lenders weigh client concentration, turnover consistency and work source documentation differently, some are far more comfortable with a smaller client base than others. A broker who places transport and logistics finance regularly knows which lender will actually look favourably at your specific mix of contracts, rather than you finding out after an application is declined. (More on how a business loan broker actually works.)

When finance isn’t the right call yet

If turnover has been genuinely inconsistent for an extended period, or the business is reliant on a single client with no documented ongoing work, it’s worth addressing that concentration risk first. Adding debt on top of an unstable revenue base tends to make the underlying problem worse, not better.

Waiting on 30-90 day terms right now?

Tell us about your fleet, your contracts and your client spread and we’ll tell you honestly which finance actually closes the gap for your business.

Call 0468 902 233

Before you enquire

It’s a letter from a client or contractor confirming ongoing or upcoming work. It’s not always mandatory, but it’s usually the fastest piece of evidence for both asset finance and cashflow applications in this industry, worth having on hand before you apply.

Generally straightforward in this industry compared to cashflow products, particularly with evidence of ongoing work such as a work source letter to support the application.

It’s not disqualifying, but lenders view it as a risk factor and it can affect which lenders are willing to look at the deal and on what terms. Worth discussing directly so we can match you to a lender comfortable with your specific client mix.

Yes, that’s precisely the gap it’s designed for, advancing you a portion of the invoice value once the work is done rather than waiting the full term for payment. See our invoice finance page for how it works.

Andrew Beckett

Founder and principal broker, Ecommerce Loans. 10+ years in Australian SME, asset, trade and consumer lending across Shift, Iron Capital, Lumi and Lend, represented through CAFBA, FBAA and MFAA.

Call 0468 902 233