Working Capital
What is working capital? Working capital is short-term cash a trucking business uses to cover fuel, payroll, repairs, and other expenses while waiting for invoices to pay.
Full definition
Working capital products in trucking range from short-term loans and lines of credit to merchant cash advances. The common factor: short repayment terms (3-18 months) and underwriting based on revenue and bank-deposit history rather than collateral.
The right tool depends on the cash-flow gap. A predictable monthly need (insurance renewals, peak-season fuel) fits a line of credit. A one-shot capital expense fits a term loan. An emergency repair fits a same-day repair loan or MCA.
Factoring is technically a working-capital workaround, not a loan, but for many owner-operators it is the most efficient way to close the gap between haul and pay.