How do draws and repayment work for a fleet?
Once a line is open, you request a draw and the funds go to your business account. Each draw is repaid on a set schedule, and repaid principal restores your available limit. A regional carrier might draw during a week when two big customers pay late, repay as their payments arrive, then draw again when winter storms close roads.
Ask each funder how draws are requested, how quickly funds reach your account, whether each draw starts its own repayment schedule and whether there is a minimum draw. Those details decide whether a line fits the way your fleet actually spends.
Which fleet cash gaps does a line fit best?
A line fits gaps that repeat but change size: customer terms that stretch, detention and accessorials that pay late, seasonal swings along the East Coast, port congestion that slows turns, and storm weeks with idle trucks. It fits less well for a single planned purchase or for covering a lane that loses money every run.
- Good fit: a dry van fleet whose retail customers pay on net terms. See dry van fleets.
- Good fit: a drayage fleet facing unpredictable terminal delays. See port congestion and drayage cash flow.
- Good fit: getting through produce and holiday swings. See seasonal East Coast freight swings.
- Weaker fit: equipment. Use equipment financing.
| Feature | Line of credit | Working capital |
|---|---|---|
| How funds arrive | Draw as needed up to a limit | One lump sum |
| What you pay on | Only the amount drawn | The full amount |
| Best for | Recurring, variable freight-pay gaps | A one-time gap you can size |
| Reuse | Repaid amounts become available again | Apply again for more |
How is a fleet's credit limit decided?
Funders typically set the limit from monthly revenue and deposits, time in business, owner and business credit, and existing payments. Some start with a modest limit and review it after a record of on-time payments. Requirements vary by product and funder. A spread of reliable customers and clean bank activity usually supports a stronger limit.
Things that tend to help:
- Freight revenue deposited consistently into one business account
- Several paying customers rather than one dominant shipper or broker
- Few overdrafts or returned payments
- Disclosure of every existing obligation
What does a line cost when I am not using it?
With many lines you pay only on what you draw, but some carry origination, draw, maintenance or inactivity fees. Fee structures differ by funder, so ask for every fee in writing and compare total cost based on how you realistically expect to use the line across a year of freight.
If you expect to draw the full amount right away and keep it out for a long time, a term loan may cost less. A line earns its keep when balances rise and fall with your freight cycle.
Can a line of credit be reduced or frozen?
Yes. Most agreements let the funder reduce or freeze a line if deposits drop sharply, payments are missed or your risk profile changes. For a fleet, losing a major customer can trigger that review. That is why a line should not be your only cash reserve, and why diversifying customers matters.
Read the agreement's terms on limit changes. Also see customer concentration for fleets.
How I-95 Funding helps fleets put a line in place
I-95 Funding helps fleets get funded through our funding partners. We review your deposits and customer mix, match you with funders offering line programs that fit trucking, and explain limits, draw rules, repayment and fees for each option. The best time to open a line is before a slow season or a storm, not during one.
Opening a line during a strong stretch usually brings better terms. Start your application or read how it works. Freight factoring is an alternative some owners compare.
Frequently asked questions
How often can a fleet draw from its line?
Most lines allow draws as often as needed up to the available limit, though some set a minimum draw or limit draws per period. Each draw may carry its own repayment schedule. Confirm the rules before signing so the line matches your weekly freight cycle.
Can my limit grow with the fleet?
Many funders review lines periodically and may raise the limit after on-time payments and steady or growing deposits. Increases are never automatic. Clean bank activity and a diversified customer base give you the best chance.
Do seasonal carriers qualify for lines of credit?
Many do. Funders look at a full year of deposits to understand the pattern, so a predictable produce or holiday swing reads differently than an unexplained drop. A short note explaining your busy and slow months helps.
Is a line of credit secured?
Some lines are unsecured and based on revenue and credit, while others are secured by business assets. Most include a personal guarantee, and many funders file a general lien. Read the security and guarantee sections of every offer.
Should I use a line for every slow week?
Use it for gaps that close as customers pay. If the balance never comes back down, the issue is likely rates, lanes or costs rather than timing, and borrowing more will not solve it.
Put a line in place before the next slow week
Apply once and see line of credit options from our funding partners.
Updated September 14, 2026 · I-95 Funding Team