Supporting the growth of a family-owned logistics firm

Industry: Transport

Product: Invoice discounting

Facility size: £900k

The client

Founded in 2001, this family-run business began as a two-person operation and has grown steadily over the subsequent years. Today, they employ a team of 30 and are known for delivering reliable, high-quality transport services across both light and general haulage.

The company has focused strongly on employee development and retention, which is particularly important in a sector where staff turnover is often high. The wealth of experience available to clients has resulted in both a competitive advantage and the formation of a host of long-term relationships.

The challenge

With consistent year-on-year growth achieved, the firm aims to double in size over the next two years. However, scaling in the logistics sector comes with upfront costs, specifically wages and fuel, which can put pressure on cash flow.

Historically, they relied on a small overdraft to manage working capital; however, with weekly driver payments and 30-day invoice terms from larger customers, this approach was no longer sustainable. The resulting cash flow gap risked slowing their momentum.

To drive expansion, they needed to shift focus from day-to-day operations to strategic growth. Operational responsibilities had largely been handled by the managing director, limiting the capacity to pursue new business. To address this, they invested in several new hires, including a very experienced head of sales along with other additional staff. This freed leadership up to concentrate on client acquisition and long-term planning.

The solution

To support their growth, Close Brothers Invoice Finance supplied a £900,000 invoice discounting facility, allowing the business to release up to 90% of the value of unpaid invoices and providing the working capital needed to cover rising employment and fuel costs. It also gives them the flexibility to manage cash flow more effectively, without relying on short-term borrowing.

The result

With funding in place, the firm is growing at pace. New clients have come on board and the team is successfully balancing the initial costs of expansion and the associated additional income generated.

The invoice finance facility has given the company the breathing room it needed to pursue its growth strategy confidently without compromising on service quality or investment in staff.

If you're a haulage or transport firm looking to grow but facing cash flow challenges, invoice finance could be the key to unlocking your next phase of expansion. Get in touch with our team today to explore how a flexible funding solution can support your growth.