Tier-1 contracts pay well. They also pay on 60-day terms. A line-haul operator had just won a major new contract and needed $250K to bridge fuel, driver advances and consumables for the first invoice cycle. They owned a Volvo FH16 prime mover and a B-double trailer set outright. ABL released the equity, fitted GPS tracking, and the rig was on the road for day one. The truck was the security. The freight kept moving.
The situation
Working capital for the first 60 days of a new tier-1 customer contract. A short-term gap, the kind that opens up when a great contract has long payment terms attached.
The operator owned a Volvo FH16 prime mover and a B-double trailer set outright. Equity sitting in the rig, ready to deploy. The contract started Monday. The first invoice wouldn’t pay for two months.
This is what asset-based lending looks like at its simplest. A business owns an asset with equity in it. They need short-term cash. ABL releases the equity for the loan term, and the asset comes home on repayment. Same shape as a home equity loan, just with a different asset class.
The asset
A Volvo FH16 prime mover and a B-double trailer set. Both owned outright by the operator. Ready to roll on day one of the new contract.
For an asset-based lender, that’s enough to underwrite. The asset is the security, the business is the borrower, the deal doesn’t need a polished P&L to make sense.
The need
$250K to cover fuel, driver advances and consumables across the first invoice cycle. The kind of cash that has to be in the account before the rig leaves the depot, not in a queue with the bank’s commercial lending team.
The structure
The deal went through as a Track It facility. $250K disbursed. Total loan amount was $270,000 with fees built in. A GPS tracking unit fitted to the prime mover for the loan term.
The rig was on the road for the contract’s first delivery. Same fleet, same depot, same drivers. ABL had visibility on the asset, the operator had the working capital, the freight started moving on day one.
That’s the Track It structure. The rig stays in service across the loan term and the tracker comes off on repayment.
- Product: Track It
- Asset: Volvo FH16 prime mover + B-double trailer set, owned outright
- Disbursement: $250K
- Loan amount: $270,000 (includes fees)
- Use of funds: Working capital / new contract funding
- Security: GPS tracker fitted, rig remained in service
The outcome
Funds in the operator’s account before the contract started. Rig on its first run, GPS pinging the route, loan repaying out of trading cash flow as the first invoices cleared. The new tier-1 customer relationship started clean.
A new tier-1 contract is great news until you read the payment terms. Sixty days from invoice is a long time to wait for week one. We can bridge that, with the rig still earning every kilometre.
Why this deal worked
Three things had to be true for the deal to work. They’re the same three things every Track It deal needs:
- An asset with real equity, owned outright. The prime mover and trailer set weren’t financed. Both could be secured cleanly while staying in service.
- A short-term gap, not a long-term issue. The need was for a few months, not years. That’s the kind of bridge ABL is built for.
- The right product for the asset. The rig had to be on the road from contract day one. Parking it would have killed the contract before the first invoice landed. Track It kept it earning while the deal ran.
If your client has just won a contract with long payment terms and needs working capital to fund the first cycle, that’s an ABL conversation. The asset they need to deliver the contract is also the asset that can fund the bridge. Same shape as a home equity loan, different security.
Got a client funding a new tier-1 contract?
If your client owns the asset they need to deliver a new contract and needs cash for the first invoice cycle, Track It is the structure. We release the equity, fit a tracker, and the asset goes to work. Free desktop valuation and a clear borrowing figure, all inside 2 hours. Same-day settlement when the asset is secured.