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The 101 On Getting a Logistics Loan

Are you a logistics business in need of finance? Look no further. Bizcap offers tailored equipment loans that can provide you with the financial resources you need to acquire the machinery and equipment necessary for your operations.

The logistics industry plays a vital role in the global economy, and businesses operating in this sector often require significant capital investments to grow and remain competitive. Obtaining financing can be a challenge for logistics businesses, but there are several options available, including logistics business loans. Learn about the different types of business loans Bizcap offers to suit various needs.

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What are Logistics Loans?

Logistics business loans are specifically designed to meet the needs of businesses in the transportation and logistics industry. These loans can be used for a variety of purposes, such as purchasing new equipment, expanding operations, hiring employees, or covering short-term cash flow gaps.

There are several types of logistics business loans, including term loans, lines of credit, and equipment financing. Term loans provide a lump sum of capital that is repaid over a fixed period with interest. Lines of credit provide businesses with access to a revolving line of credit that they can draw on as needed, making it an excellent option for covering short-term cash flow gaps.

One of the primary advantages of logistics business loans is that they are often easier to obtain than traditional business loans. This is because lenders that specialize in logistics business loans understand the unique needs of the industry and are more likely to approve financing. Additionally, many lenders offer flexible repayment terms, which can help businesses manage their cash flow more effectively.

When applying for a logistics business loan, lenders will typically consider factors such as the company’s credit history, revenue, and profitability. They may also look at the company’s industry experience and the strength of its management team. Lenders may require collateral to secure the loan, such as equipment or accounts receivable. Additionally, it’s essential to have a solid business plan in place that outlines how you plan to use the funds and how you will repay the loan.

Advantages:

Preserves working capital: Equipment loans can help businesses preserve their working capital, allowing them to use their cash flow for other expenses or investment opportunities.

Tax benefits: As mentioned earlier, equipment loans can offer several tax benefits, including deductible interest, instant asset write-offs, depreciation, and GST credits. These benefits can help reduce a business’s tax liability and improve their cash flow.

Predictable costs: Equipment loans typically have fixed interest rates and predictable repayment terms, which can help businesses budget and plan for their expenses.

Better equipment: By financing equipment with a loan, businesses can afford to purchase higher-quality equipment than they could with cash on hand. This can help improve productivity, efficiency, and competitiveness.

Disadvantages:

Interest and fees: Like any loan, equipment loans come with interest and fees, which can add to the overall cost of the equipment. Borrowers should carefully review the terms of the loan to ensure they understand the total cost of borrowing.

Collateral requirements: Equipment loans are typically secured loans, meaning that the equipment being financed is used as collateral. If the borrower defaults on the loan, the lender may repossess the equipment. This can be a risk for businesses that rely heavily on the equipment.

Limited flexibility: Equipment loans are designed to finance specific equipment purchases or leases, and the funds cannot be used for other purposes. This can limit a business’s flexibility and ability to pivot their strategy.

Long-term commitment: Equipment loans are typically long-term commitments, with repayment terms ranging from 1 to 10 years. Borrowers should ensure they have a stable cash flow and the ability to meet the loan obligations over the long term.
“Inflation and economic challenges mean big banks are being more cautious when assessing SME loan applications. When others are tightening restrictions, we continue to fund businesses from all walks of life.”

- Bizcap

Tax Benefits of Logistic Loans

In Australia, logistics business loans can provide several tax benefits for businesses in the transportation and logistics industry. Here are some potential tax benefits to consider:

Interest Expenses: Interest expenses on logistics business loans are generally tax-deductible. This means that businesses can deduct the interest paid on the loan from their taxable income, which can reduce their tax liability.

Depreciation: If the logistics business loan is used to purchase equipment or other assets, the depreciation on those assets may also be tax-deductible. Depreciation is a tax deduction that allows businesses to deduct the cost of the asset over its useful life.

Prepayments: Prepayments of interest may also be tax-deductible in some cases. If a business pays interest on a loan in advance, they may be able to claim a deduction for that interest in the year in which it is paid.

GST: If a business borrows money for business purposes, the GST paid on the loan may also be tax-deductible. This can include the GST paid on interest charges and other fees associated with the loan.

It’s important to note that the tax benefits of logistics business loans will depend on the specific circumstances of the business and the loan. It’s always a good idea to consult with a tax professional to understand how a logistics business loan may impact your tax situation. Additionally, businesses should keep accurate records of all loan-related expenses and consult with their accountant or tax professional to ensure they are claiming all eligible deductions.

Logistics business loans are an excellent option for businesses in the transportation and logistics industry that need capital to grow and remain competitive. With flexible repayment terms and specialized lenders that understand the unique needs of the industry, logistics business loans can help businesses achieve their goals and succeed in the long run.

Fast Funding for Logistics Loans

If you find yourself in a situation where you need finance, lenders such as Bizcap offer SME owners access to the funds they need, within the day. Use our tool to compare financing options and find the best match for your needs.
Our Solutions

Fast Business Loans

Alleviate cash flow constraints with fast access to funds.

Learn More

Small Business Loans

Thinking of growing your business? Think Bizcap.

Learn More

Secured Business Loans

Larger loans with flexible repayment terms.

Learn More

Bridging Finance

Plug cash flow gaps at heavily reduced rates.

Learn More

Line of Credit

Have funds at your fingertips whenever you need them.

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Call now to speak with a Bizcap Loan Specialist. They can talk you through the options that best suit your needs.
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What type of loans does Bizcap offer?

Bizcap specialises in providing fast and flexible business loans to small and medium-sized businesses. Our solutions include Fast Business Loans, Small Business Loans, Secured Business Loans and Bridging Finance. Our loan sizes vary from £5,000 to £750,000. Compare our solutions here

How much can I borrow from Bizcap?

Bizcap offers business loans of £5,000 to £750,000 with a Business Line of Credit coming soon. To find out more about each of our loans, compare our solutions.

The specific amount of your business loan is influenced by factors like your business's cash flow, operational duration, assets, and loan purpose. We assess these aspects to gauge your business's health and creditworthiness.

Our aim is to offer customized loans that address each business's unique financial needs, minimizing risk for both parties. By thoroughly evaluating factors contributing to your business's financial health, we determine an appropriate loan amount and terms to support sustained growth and success.

How quickly can I get a business loan from Bizcap?

At Bizcap, we pride ourselves on providing fast and flexible business loans. Applications for a Bizcap Fast and Small Business Loans can be approved within 3 hours and funded that day. Our other solutions can be issued in as little 24 hours. If you need funds sooner, let your Loan Specialist know and they can fast track your application. This quick turnaround ensures our customers get access to the funds they need to meet their obligations and grow in a competitive market.

How quickly can I get funds into my account?

At Bizcap, we pride ourselves on providing fast and flexible business loans. Applications for a Bizcap Fast and Small Business Loans can be approved within 3 hours and funded that day. Our other solutions can be issued in as little 24 hours. If you need funds sooner, let our Loan Specialist (or Business Development Manager for partners) know and we can fast track your application.

Delays can occur when customers provide partial or inaccurate information or supporting documents. To ensure your loan is processed as quickly as possible, be sure to provide accurate and complete information.

How can Bizcap fund loans faster than other lenders?

Bizcap sets itself apart from other lenders in the speed at which we offer business loans. We can do because we are a direct lender and self-funded, which cuts the red tape that’s typically involved in processing loans, and thanks to our streamlined application, approval and end-to-end processes.

Traditional banks can often take weeks to provide an outcome for a business loan application. Non-bank lenders, while generally faster than banks, can still take several days to process fast business loans. In contrast, Bizcap can grant you access to the capital you need in less than 24 hours. This exceptional speed makes Bizcap the fastest business lender in Australia and New Zealand.

What can hold my business loan application up?

The key factor that can hold up your business loan application is delays in providing us with the necessary documentation. You need to submit your business bank statements as part of your online application, but after we have made you a conditional offer we may require further documentation. The sooner you can get that to us, the sooner we can issue you with a business loan.

Bizcap prides itself on being a low doc lender, meaning we require fewer documents for business loans than other lenders, including both banks and non-bank lenders. This streamlined approach enables us to expedite the business loan application process, but it is still essential for applicants to provide the requested documentation in a timely manner.

How does the process work?

We leverage our proprietary technology system and extensive underwriting experience to provide outside the box solutions. This lets us lend to customers who come from all walks of life and a multitude of industries.

After you complete your application (a simple form that includes your details and business bank statements), we assess your file without running a credit check and make you a conditional offer.

Once you’re happy with the loan terms and wish to proceed, we might gather some extra information, including a credit report, to make you an unconditional offer. Funds are often issued that day.

What are Bizcap’s rates and fees, and how are they determined?

We consider each applicant’s cash flow, payment history and financial strength to determine a risk-adjusted repayment plan that’s tailored to that applicant.

Payments are determined by factors such as the amount and consistency of the business’s cash flow, the number of years the business has been in operation, the assets owned by the business, and the proposed use of funds. We also charge an establishment fee on the loan, which is agreed upon upfront.

Unlike other lenders, we won’t penalise you for settling your loan early, if that’s what you choose to do. Instead, we’ll reward you for paying it off early, by giving you a discount.

What criteria do I need to meet to apply for a Bizcap loan?

At Bizcap, we have established minimum eligibility criteria to ensure that our business loans are accessible to a broad range of businesses. Each loan has different eligibility criteria.

For Bizcap Fast and Small Business Loans, you will need:
1. An active Company Registration Number (CRN). This demonstrates that your business is operating legally in the United Kingdom.
2. At least 4 months of trading. This helps us assess your business’s stability and potential for growth.
3. A monthly revenue of at least £12,000. This criterion helps us determine how much we can lend you, as well as your ability to manage and repay the loan.

By meeting these criteria, you can confidently apply for a fast business loan with Bizcap, knowing that our financial solutions are designed to support businesses like yours.

To find out the eligibility criteria for Bizcap Secured Business Loans, Bridging Finance and Line of Credit, please refer to the Eligibility section of our Compare Solutions table.

What factors affect the loan application approval?

Factors that affect whether or not your loan is approved include how long the business has been trading, its revenue history, assets and credit history. We also look at the business owner and various other factors to help us build a comprehensive profile of the applicant. It is thanks to this approach of truly getting to know the customer that Bizcap can help in ways that other lenders won’t.

What if I only need a business loan for a few weeks?

If you only need a loan for a few weeks, Bizcap can help by providing a loan that’s tailored to your needs and circumstances. Our business loans are a flexible solution to bridge cash flow gaps, make quick purchases, or address other short-term financial requirements.

We understand that businesses sometimes need short-term financial support, which is why we offer business loans with varying terms. If you know that you will only need a loan for a brief period, just let us know, and we can structure your loan accordingly. Businesses who qualify for our Bridging Loans can receive up to 65% off our standard rates.

What’s more, we appreciate responsible borrowing and timely repayment, so we offer discounts for settling loans early. By taking advantage of this incentive, you can save on interest while still addressing your short-term financing needs.

What can I use the funds for?

You can you use the funds for any business purpose. Our customers generally use the funds for:
- expansions, renovations and unexpected repairs
- purchasing stock, inventory and equipment
- marketing
- hiring employees
- expenses and investments
- cash flow and growth

What are the interest rates, and how are they determined?

The interest charged by Bizcap on business loans is determined by a factor rate, which is a fixed fee that is applied over the term of the business loan. The factor rate Bizcap applies to your loan takes into account your business’s creditworthiness, the duration of the loan and the intended use of the funds, and therefore varies from one loan to the next.

As you build a relationship with Bizcap, demonstrating your ability to reliably and punctually pay off your loan, the factor rate will likely decrease.

Will applying for a loan with Bizcap negatively impact my credit score?

Small business owners avoid shopping around for the best loan offer out of an understandable concern that doing so would result in multiple credit checks. Each credit check, or "hard inquiry," can slightly lower your score. What’s more, some lenders view multiple credit inquiries within a short period as a sign of financial instability.

One great thing about Bizcap is that we can make an initial offer without running a credit check, which makes applying for a loan completely risk-free.

Only once you decide to proceed with the loan do we run a hard inquiry to make the offer unconditional. If you’d like to find out how much your business would be eligible for, apply now for an obligation-free offer.

Small business loans, approved in as little as three hours

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