Industry

Logistics and warehousing funding in Canada: what funders actually read.

The deposit patterns, seasonality and timing that decide how a Canadian logistics and warehousing file is read.

✓ Checking what you qualify for does not affect your credit score.

How funders read logistics and warehousing files

Logistics firms fund fuel, drivers and equipment before shippers pay, which makes the payment cycle the central cash-flow issue.

Customer payment terms against fuel and payroll cadence
Concentration in a few shippers
Fleet utilisation and per-unit deposits
Seasonal freight patterns

The cash-flow rhythm

Peak freight arrives before the holidays and around harvest in some corridors. Spring thaw and weather events can disrupt capacity.

Where the pressure usually shows up

Shippers pay in 30 to 60 days while fuel is paid weekly
A single large customer can pay late
Maintenance and insurance renewals arrive in lumps

What the money usually does

Fuel and driver pay between invoices
Trailers and tractor purchases
Warehouse racking and equipment
Insurance and licensing renewals

A deposit-based structure sized on total deposits is typical, and a revenue-share can help when a big customer's payment timing is uneven.

A worked example

Illustrative arithmetic

A regional logistics company depositing about $140,000 a month asks for $60,000 for a trailer fleet addition and fuel. At a 1.22 factor the payback is $73,200, a cost of $13,200. Over roughly 6 months that is about $581 per business day, or close to 9% of monthly deposits.

Total payback: $60,000 × 1.22 = $73,200.
Cost: $13,200.
Payment: about $581 per business day, or 9% of monthly deposits.

Every figure on this page is illustrative arithmetic in Canadian dollars. It is not an offer, a quote or a promise of approval.

Before you apply

Provide aged-receivable timing if available
Show deposit pattern by shipper where practical
Have equipment quotes with delivery dates

Typical starting points

Monthly revenueTypically from around $20,000 a month in deposits for Canadian files. The exact line varies by funder and by file.

Time in businessTypically about 12 months. Newer businesses can be reviewed, but the options narrow.

Account healthLimited low-balance or negative days. Funders read the last few months of bank statements for this.

CreditScores from 500 are considered. A score of 600 or higher opens more options and better offers.

DocumentsA signed application and recent business bank statements, typically the last four months.

Existing advancesFiles with an existing advance can be reviewed, including second position.

Common questions

Is eligibility the same for trucking and logistics?

Eligibility varies by funder and file, and larger operations are reviewed on deposits and account health.

What if one customer is most of my revenue?

It is read as concentration. A smaller request relative to deposits keeps the file comfortable.

Can I fund a trailer purchase?

Yes. Specific equipment with a known price is straightforward to size.

Keep reading

Merchant cash advance CanadaHow an advance against future card sales works Revenue-based financing CanadaRepay a fixed multiple as a share of revenue Cash-flow affordability calculatorCan the month carry the payment?IndustriesHow each trade is read by funders Funding use casesPayroll, inventory, expansion and more Underwriting situationsCredit, NSFs, time in business and more

Educational information only. It is not legal, tax or accounting advice.

See what you qualify for

Same-day decision. Applying takes a few minutes and will not affect your credit score.

Apply Now →