Security & Transport Services
Business Funding for Courier Services
Courier services compete on speed and reliability, and both require investment in vehicles, drivers, and dispatch technology. Same-day and rush delivery services command premium pricing, but the operational costs are high. Each driver needs a vehicle, insurance, and a mobile device. The shift toward last-mile delivery for ecommerce companies has created new revenue opportunities, but these contracts require you to staff up fast and deliver at scale from day one.
Common Uses
What Courier Services Use Funding For
- Purchase or lease delivery vehicles including cargo vans and box trucks
- Hire delivery drivers and dispatch coordinators for new service contracts
- Invest in route optimization software, GPS tracking, and proof-of-delivery systems
- Fund commercial auto insurance and workers' compensation premiums for a growing driver fleet
Funding Options
Best Funding Types for Courier Services
Vehicle Financing
Finance cargo vans and delivery vehicles with the vehicles as collateral. Adding vehicles is the primary way courier companies grow, and fleet financing programs offer volume discounts and streamlined approval for multi-vehicle purchases.
Working Capital Loan
Fund the rapid hiring and onboarding required when you win a new delivery contract. Last-mile contracts require you to have drivers and vehicles ready on the start date, and a working capital loan covers the gap between mobilization and first payment.
Invoice Factoring
Factor outstanding invoices from corporate and ecommerce clients who pay on net-30 terms. Courier companies with multiple high-volume accounts can factor selectively based on which clients pay slowest.
What Lenders Look For
Qualification Notes for Courier Services
Related Industries
Related Security & Transport Services Funding
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