Supply chain finance for logistics companies

• Cash flow challenge: Logistics firms often face long payment terms from large retailers and manufacturers while needing to cover fuel, fleet, and supplier costs upfront.

• Perfect for: Haulage, distribution, freight forwarding, and third-party logistics (3PL) businesses balancing ongoing operational expenses with delayed invoice payments.

Novuna helps logistics companies strengthen working capital and improve supplier relationships through flexible supply chain finance solutions, either through our award-winning in-house service or by comparing providers to ensure you have a great deal for your business.

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Keep your logistics network moving with stable working capital

Managing cash flow in logistics is complex with vehicle payments, fuel costs, and subcontractor invoices often due long before clients settle their accounts.

Supply chain finance bridges that gap, giving logistics providers and their suppliers faster access to cash without increasing debt. Once a buyer approves an invoice, suppliers can receive early payment (typically within 24-48 hours), ensuring the entire chain operates smoothly.

For logistics firms, this means:

• Predictable liquidity to fund daily operations.

• Stronger supplier relationships built on timely payments.

• Reduced strain on overdrafts and short-term credit.

• Improved flexibility for fleet expansion and maintenance.

How supply chain finance works for logistics companies

1. Client approval: The buyer (such as a retailer or manufacturer) approves the logistics invoice.
   
   
2. Early payment: The finance provider pays the logistics firm or its suppliers immediately.
   
   
3. Deferred buyer payment: The buyer then pays the finance provider later, extending their payment terms.

Benefits of supply chain finance for logistics

• Consistent cash flow: Smooth income between client payments.

• Reduced funding pressure: Free up capital without taking on new debt.

• Stronger supplier partnerships: Pay subcontractors promptly to build reliability.

• Operational stability: Cover costs like fuel, maintenance, and storage on time.

• Improved credit efficiency: Access funding at rates linked to your clients’ credit profile

Boost your cash flow Speak to an expert

Supply chain finance vs. invoice finance for logistic businesses

• Supply chain finance is buyer-led, helping suppliers get paid early through approved invoices.

• Invoice finance is supplier-led, letting your business unlock funds directly from unpaid invoices.

• Many logistics firms use both where supply chain finance for large client contracts and invoice finance for ongoing operations.

If you handle multiple contracts or work across complex logistics chains, combining the two creates complete control over your working capital.

Build financial resilience across your logistics operations with other financial options 

To strengthen cash flow even further, many logistics firms pair supply chain finance with complementary funding solutions:

• Use asset finance to invest in new vehicles, warehousing equipment, or tracking technology without heavy upfront costs.

• Combine with working capital loans to manage short-term seasonal spikes or new contracts.

• Apply invoice finance for subcontractor payments when buyers operate on extended terms.

How Novuna Business Cash Flow can help

We’ve helped healthcare providers, equipment suppliers, and service partners across the UK access fast, flexible funding to support procurement and cash flow stability.

Speak to our experts today and we will help you find a great fit for your situation.