Trailer finance for hauliers and logistics operators

Trailer finance is asset finance applied to the trailers your operation runs, and it works whether you are buying a single unit or building out a fleet. The trailer itself is the main security for the agreement, which keeps the deal simple and makes it easier to fund than unsecured borrowing. You use the trailer to earn while you pay for it over a term that reflects its working life.

We arrange finance across the full range of trailer types, including:

• Curtainsiders for general palletised and mixed freight.
• Refrigerated and temperature controlled trailers for chilled and frozen loads.
• Flatbeds, skeletals and container trailers for construction, steel and container work.
• Tippers, tankers and specialist units for bulk and dedicated loads.

Whether you are adding one trailer to match a new contract or funding a batch to grow capacity, we can structure finance that lets you add units as the work comes in rather than committing to everything up front.

As with trucks, the two main routes are hire purchase and leasing, and the right one depends on whether you want to own the trailer and how you manage your fleet. Trailers tend to have long working lives and hold their value, which often makes ownership attractive, but leasing has its place where you want to keep costs predictable.

• Hire purchase. You pay a deposit and fixed instalments, and the trailer is yours at the end after a final option to purchase fee. This suits operators who keep trailers for the long haul and want them as balance sheet assets.
• Finance lease. You rent the trailer over the term with lower initial outlay, then usually extend, sell it on the funder's behalf or return it, depending on the agreement.
• Contract hire. A fixed period rental, sometimes with maintenance included, where you hand the trailer back at the end and carry no residual value risk.

Because trailers last so long, many hauliers favour hire purchase so the asset keeps earning after the finance is repaid. We will talk the options through with you and your accountant, since how each is treated in your accounts is a matter for them.

Both new and used trailers are readily fundable, and the trailer market has a healthy supply of quality used stock that holds up well over a long life. New trailers bring the latest build, full warranty and the strongest residual values, which supports keener terms and longer agreements. Used trailers cost less and can be funded over shorter terms, which suits operators watching capital exposure or matching a specific unit to a job.

For used trailers, funders look at age, condition, the type of trailer and its resale value. A well maintained curtainsider or reefer with a clear history is straightforward to fund, though older or highly specialised units may call for a larger deposit or shorter term. Refrigerated trailers carry their fridge units as part of the value, so their condition and service history matter to the deal. We place each case with the funders on our panel best suited to that trailer type.

There is no single rate for trailer finance. The cost turns on the age of the trailer, the deposit, the length of the term and the strength of your business and its accounts. A new refrigerated trailer for an established operator on a longer term prices very differently from an older curtainsider for a newer business.

As a guide, terms typically run over two to five years, and sometimes longer for new trailers, which hold their value well over a long working life. A larger deposit, a newer unit and a solid trading record all help bring the cost down. Rather than quote a headline figure that would not reflect your deal, we take the details, put it to the funders on our panel and come back with real numbers you can plan around.

Trailers are often the pinch point when you take on more work, because you may need several to keep your units and drivers productive. Financing them rather than buying outright means you can scale capacity in line with contracts without draining reserves you need for the ramp-up. Many operators run more trailers than tractor units, drop-and-swap style, and funding lets you build that ratio without a heavy one-off outlay.

When you are growing, funders want to see that the extra trailers are backed by genuine demand, so coming with contract details and your utilisation figures makes the case stronger. We can also structure finance so you add trailers under a facility as the work lands, and where cash flow is tight during a ramp-up we can look at how trailer finance sits alongside invoice finance so your funding keeps pace with the fleet.

Getting started is quick. Tell us the trailer or trailers you want to fund, whether they are new or used, the deposit you can put down and a little about your business and how the trailers will be used. We will confirm whether hire purchase or a lease fits best, give you an honest view of the likely term and cost, and put the deal to the right funders on our panel.

We are a finance arranger and introducer, not a lender. Commercial lending to limited companies is not regulated by the Financial Conduct Authority. Some agreements, for example consumer hire or lending to sole traders and individuals, can be regulated, and we refer those to an appropriately authorised firm. Nothing on this page is financial, tax or legal advice. Contact us with your requirement and we will get to work.