23.5.2026 | Finance

Rising fuel prices may dominate headlines, but according to David Read at CCF, the biggest financial pressure facing many logistics and transport businesses remains far more fundamental: the widening gap between when businesses pay out and when customers pay them.

Across the sector, businesses continue to face rising operational costs, tighter margins and increasing pressure on working capital. Fuel, wages and supplier costs require immediate payment, while customer invoices can often take weeks or even months to settle.

The challenge, David explains, is that many businesses can look profitable on paper while still facing serious cash-flow pressure behind the scenes.

Speaking to Porttalk, David explains why growth can sometimes worsen financial strain, the common missed opportunities in working capital, and why cash-flow forecasting has become increasingly important across the logistics sector.

What are the biggest cash-flow pressures currently facing logistics and transport businesses?

The obvious talking point now is fuel, particularly given the recent price increases. However, the biggest ongoing challenge for many operators remains the mismatch between when they receive payment and when they have to pay suppliers and staff.

Fuel must be paid for quickly, and drivers will not wait for wages, whereas customer payment terms often stretch far longer. That gap continues to put pressure on many businesses across the sector.

Why are some operators still financially stretched, even when volumes are strong?

A lot of businesses are profitable on paper but still struggle with cash availability because so much working capital is tied up in debtors’ books.

Ironically, growth can often make the situation worse. As operators take on more work, they incur higher fuel, wage and operational costs, all of which must be paid promptly. However, the additional revenue still depends on customers paying on time.

Another common issue is that businesses focus on profit without fully accounting for the cost of finance. A company may report a profitable month, but after deducting finance costs, there may be very little cash left within the business.

What are the most common missed opportunities when it comes to unlocking working capital?

In logistics, the two biggest areas are usually vehicle and equipment finance, alongside funding against the debtor book.

Some businesses remain reluctant to borrow, yet finance is often necessary to support stability and growth. The phrase “cash is king” remains highly relevant in the logistics sector.

How is invoice finance being used more strategically now?

Invoice finance has largely shed the stigma it once carried and is now widely used by growing logistics businesses that recognise how much cash is tied up in unpaid invoices.

It enables operators to access cash sooner, helping them maintain cash flow, pay suppliers and wages, and continue operating smoothly while awaiting customer payments.

Increasingly, businesses view invoice finance as part of a longer-term financial strategy rather than simply a short-term solution.

What practical first step would you recommend to businesses seeking to improve cash flow?

Plan.

If a business is taking on new work, it is important to build a cash-flow forecast and understand exactly which costs will arise, when they are due, and when income is realistically expected to arrive.

Once that position is understood, operators can then seek advice on the most appropriate way to support any shortfall, whether through invoice finance or other forms of funding linked to available assets.

As operational costs continue to fluctuate across the logistics sector, understanding cash flow is becoming as important as understanding profit.

In a sector where fuel, wages and operational costs rise faster than customer payments, cash flow remains one of the biggest pressures facing logistics businesses.

As operators grow and adapt in a demanding market, financial planning, clear working capital visibility, and access to the right funding are essential for staying stable and supporting sustainable growth.