Finance for Haulage Businesses: How UK Hauliers are Funding their Fleets

The UK’s haulage industry contributes £13.5 billion to the UK economy every year and 89% of all freight within the United Kingdom is moved by road. This can put huge pressures on haulage operators, especially if you’re already facing other challenges such as rising fuel costs and road tolls, driver shortages, adapting to new technology and even becoming more sustainable.

Instead of stretching your cashflow to cover everything upfront, finance provides an alternative solution that allows you to stay competitive, grow your business and manage seasonal fluctuations. 

Challenges facing haulage businesses in the UK 

Haulage and transport businesses seem to face more challenges every year. Fluctuating fuel prices, finding reliable drivers and keeping up with tech or environmental standards can be costly. 

Some of the most widely impacting obstacles that hauliers are facing include: 

• Operational cost pressures – Insurance, maintenance and even tyres have risen by 7–8% year-on-year, with vehicle purchase inflation up by over 20% since 2023. Much of this is a result of safety and emissions upgrades. On top of that, fuel price volatility continues to make budgeting difficult, with diesel still accounting for around a third of operating costs!
• Driver shortages – The UK currently faces a shortfall of over 50,000 HGV drivers, with 55% of the existing workforce aged between 50–65. Recruitment has been hit by poor industry perceptions, Brexit-related barriers and a lack of flexible working options. The Road Haulage Association (RHA) estimates that over 200,000 new drivers will be needed in the next five years to meet demand.
• Sustainability and environmental compliance – Pressure to meet Net Zero targets is pushing hauliers to invest in electric and hydrogen vehicles. Clean Air Zones are also devaluing older diesel trucks and increasing costs for non-compliant fleets. Alternative fuels like HVO and biofuels are gaining interest, but availability and pricing issues create barriers for operators to access them. 

Many businesses are turning to finance to help manage these demands and keep their operations running smoothly. 

How are hauliers using finance?

Here are just a few ways business finance is being used by haulage businesses:

• Spreading the cost of vehicle upgrades – Whether you’re making the switch to electric HGVs or replacing an old fleet, finance gives you the option to invest without a large upfront payment.
• Manage day-to-day operational costs – Finance helps you cover expenses such as fuel, insurance and other maintenance costs whilst maintaining working capital.
• Fund recruitment and training – It can be costly to bring in much needed new drivers, pay wages as well as upskilling. Business finance helps to cover these expenses without leaving your cashflow vulnerable.
• Keeping cash aside – Seasonal dips and unexpected disruptions are common if you’re running a haulage business. Finance can provide a buffer to help you stay prepared and competitive. 

What assets and projects can be funded for the haulage industry? 

Finance can be used for a wide range of assets and projects for the haulage industry. Including:

• New depots or site acquisitions
• In-house maintenance workshops for servicing and repairs
• Warehouse upgrades including racking, loading bays and cold storage
• Specialist trailers for containers, livestock, hazardous or fragile loads
• Electric and hydrogen powered vehicles
• Trucks and HGVs (including articulated, rigid, multi-axle and refrigerated vehicles)
• Onboard safety tech and telematics (cameras, sensors, driver alert systems)
• Driver recruitment, HGV training and certification
• Sustainability initiatives like EV projects or Net Zero goals, including alternative fuel systems such as HVO or biofuel conversions

Why is finance a good option for haulage operators? 

As we anticipate the Autumn Budget and approach 2026, the haulage sector is under increasing pressure to evolve, and quickly. Whether it’s to meet a green agenda or upgrade tech, the costs can rapidly stack up. These challenges aren’t going anywhere any time soon, but it’s crucial that hauliers adapt to them to keep operations on track.  

Finance allows you to purchase assets and invest in growth opportunities without a large upfront cost.

Funding support for hauliers

PMD can help your haulage business with all these options. With our panel of over 150 lenders, expert knowledge and range of financial products, we’ll support your business with flexible terms that suit you. 

Our partnership with the RHA

We’re proud to be the official finance partner of the Road Haulage Association (RHA), the UK’s leading trade association for road transport and logistic operators.

Through RHA Business Finance (driven by PMD), we provide funding to over 3,000 haulage operators across the United Kingdom. Whether members are looking to upgrade their fleet, invest in workshop equipment or improve IT infrastructure, our partnership ensures you’ll have access to flexible financial support.

If you’re a haulage business and need support keeping up with constant industry pressures, please get in touch. You can keep up to date with the latest industry news and see what we’re up to over on LinkedIn.