New Zealand relies on its trucks. Almost everything we eat, build and sell spends time on the back of one, from the ports to the distribution centres to the shop down the road. But transport is a tough business to fund. Costs hit every day, margins are thin and customers often take their time paying. fundU offers business loans for transport and logistics operators from $20,000 to $1m, secured on New Zealand property. We are a direct private lender, so we make the decision ourselves and can move quickly when a truck is off the road or a contract won't wait.
Why is cash flow so tight for transport operators in New Zealand?
Because nearly every cost is paid upfront, while revenue arrives on invoice terms. A transport business can be busy and profitable on paper but still run short of cash.
Fuel is bought daily. Road user charges (RUC) for diesel and heavy vehicles are bought in advance as distance licences, so you pay for the kilometres before you drive them. Drivers are usually paid weekly, and tyres, servicing, Certificate of Fitness inspections and insurance all come round on schedule. On the other side, many customers pay on the 20th of the following month, and larger customers can push terms out further.
That gap widens as the business grows. Each new truck or contract adds costs before it adds income. Across all sectors, the Centrix Credit Indicator for July 2026 recorded 3,035 company liquidations in the year to May 2026, up 14%, a reminder of how quickly a cash shortfall can become a crisis if it isn't funded in time.
How do contract payment terms affect a transport business?
Payment terms decide how much of your own cash is tied up in your customers' freight. The longer the terms, the more working capital you need just to stand still.
Say you invoice a customer at the end of the month and they pay on the 20th of the following month. That means you're funding up to seven weeks of fuel, RUC and wages for that work. If a major customer pays late, or disputes an invoice, the gap stretches further. Subcontracting to a larger carrier can bring its own terms, and those aren't always in your favour.
Our guide to late-paying customers and cash flow covers practical ways to tighten collections, and when bridging finance makes sense.
Good to know: when you're applying for funding, a signed contract with clear payment terms is valuable evidence. It shows exactly where the repayment will come from and when.
What do transport and logistics businesses need funding for?
Transport funding needs usually come down to keeping the fleet moving or growing it. Common reasons include:
- Fuel and RUC. Covering running costs while invoices are outstanding.
- Breakdowns and repairs. Getting a truck back on the road fast after an engine, gearbox or accident repair.
- Fleet replacement. Buying a newer truck, trailer or van, or paying a deposit on new fleet.
- New contracts. Funding extra drivers, fuel and gear before the first contract payment arrives.
- IRD arrears. Clearing GST and PAYE that fell behind during a slow patch.
- Debt consolidation. Replacing several expensive short-term loans with one secured loan.
- Depot or yard. Buying or upgrading a yard, workshop or storage facility.
For vehicles and gear, our equipment finance page and the guide to equipment finance versus a property-secured loan explain the trade-offs.
How does a property-secured loan fit a transport business?
A property-secured loan uses equity in New Zealand real estate as security, so the decision is based on the property, the purpose and the exit. That makes it useful when asset finance won't fund an older truck, a specialist unit or a repair, or when the business needs cash rather than a vehicle.
The security can be your home, a rental property, or commercial or industrial property such as a depot, owned by you, your company, your family trust or a supporting party. We lend by first mortgage, or by second mortgage behind your existing bank loan so the bank loan stays in place.
Repayment options can include interest-only, capitalised interest with no scheduled monthly repayments during the term, or principal and interest, depending on the approved terms. Loans are typically repaid from contract income, business cash flow, the sale of an asset or a refinance to a bank.
If several finance agreements are draining cash each month, business debt consolidation can replace them with one loan and free up cash flow.
Situation → how fundU can help
| Situation | How a fundU loan can help |
|---|---|
| Truck off the road with a major repair | Funds the repair quickly so the truck earns again |
| Big customer paying on long terms | Bridges fuel, RUC and wages until invoices are paid |
| New freight contract starting next month | Covers start-up costs before the first payment |
| Asset finance declined for an older truck | Lends against property instead of the vehicle |
| GST or PAYE behind with IRD | Pays IRD out so penalties and enforcement stop |
| Several expensive short-term loans | Consolidates them into one secured loan |
| Chance to buy a competitor's run or yard | Funds the purchase with property as security |
What does a transport funding example look like?
Every operator's situation is different, but strong transport applications share a clear purpose, suitable property security and a realistic repayment source such as contract income. Operators around the ports and freight hubs, such as Tauranga, often have exactly this kind of opportunity.
Example scenario
A family-owned freight business in the Bay of Plenty runs six trucks and wins a new contract carting product to the port. The contract needs one more truck and two extra drivers, and the customer pays on the 20th of the month following. The directors own a small industrial yard worth around $1.2m with a bank loan of about $400,000, and their asset finance provider won't fund the used truck they want.
fundU assesses a second mortgage of $250,000 over the yard for a 12-month term, with interest-only repayments. The loan buys the truck and funds fuel, RUC and wages for the first two months. The exit is contract income, with the balance refinanced to the bank once the contract has a trading history. This is an illustrative example only.
What you'll need
No financial statements or tax returns are needed for the initial assessment. It helps to have:
- Details of the property offered as security, including the record of title and any existing mortgage
- What the funds are for and how much you need
- Your repayment plan, such as contract income or a refinance
- Copies of relevant contracts, showing payment terms
- Recent business bank statements
- Quotes or invoices for any trucks, repairs or equipment
- Any IRD statements or arrangements if tax debt is involved
- Your NZBN or company details, and ID for directors and any guarantors
How do I get started?
It takes a couple of minutes to enquire and it won't affect your credit score. Tell us about your business, the property and what you need, and a lending specialist will call you back. If a truck is off the road, call us on 09 875 4577, or read about our urgent business loans.
Whether you're bridging long payment terms, replacing fleet or gearing up for a new contract, see if you qualify today.
Frequently asked questions
Can a trucking company get a loan to cover fuel and RUC costs?
Yes. Transport operators often pay for fuel, road user charges and wages weeks before customers pay their invoices. fundU can lend from $20,000 to $1m against New Zealand property to bridge that gap, with the loan repaid from contract payments, business cash flow or a refinance. Repayment options can include interest-only or capitalised interest.
Can I use a property-secured loan to buy a truck?
Yes. A fundU loan can be used to buy a truck, trailer, van or other equipment, or to pay a deposit on new fleet. Because the loan is secured on property rather than the vehicle, it can suit second-hand purchases, specialist units or situations where traditional asset finance isn't available or is too slow.
Will fundU lend to a transport business with IRD debt or a bank decline?
We consider IRD debt, arrears, defaults and previous bank declines case by case. What matters most is the property security, what the money is for and how the loan will be repaid. Paying IRD out in full stops penalties building and removes the risk of enforcement action while your trucks keep working.
Can a loan help me take on a big new freight contract?
Often, yes. A new contract can mean extra drivers, fuel, maintenance and sometimes another truck before the first invoice is paid. fundU can fund those start-up costs against property, with the loan repaid from contract income. A copy of the contract and its payment terms helps us assess the application quickly.
How fast can a transport business be funded?
fundU makes its own lending decisions, so there's no wait for a bank committee. Once approved, funding can happen in as little as 24 hours in some cases. The overall timing depends on the property, any valuation needed and how quickly the lawyers complete the mortgage documents.
A practical next step
Ready to see what's possible?
Tell us what the business needs, when you need it and what property is available. A fundU lending specialist will call you back to talk it through — enquiring is free and won't affect your credit score.