Unless a potential purchaser of a transport or logistics business has available funds to purchase a logistics business , they will need to obtain finance, our estimates are that over 71% of business sale transactions in the logistics industry involve some form of partial or full finance – this statistic includes the situation that most multinational logistics operators secure funds for their acquisitions via their head office finance function/division.

Some examples of the finance methods used by purchasers of logistics businesses are :-

• Vendor Finance – where the seller provides part or all of the funding by way of loan for the purchaser to acquire the business and it's assets
• Bank Overdraft – where the purchaser operates the acquired business on a funds limit of borrowing linked to their business trading account
• Debtor Finance – where the purchaser operates the acquired business on a funding arrangement where the financier takes a set percentage of revenue collected by the business to it’s customers, in return for the business then being able to utilise these funds earlier than what would have been the case if the business had to wait for standard collection procedures to follow where customers progressively pay their invoices direct to the business
• Commercial Bills – where the purchaser operates the acquired business with a standard funds trading account that is funded by commercial bill borrowings that are normally set for relatively short periods of time – ie. 30 to 120 days and are either fully repaid or rolled over/renewed

Sources of finance can be varied , but can include :-

• Finance Brokers
• Financial Institutions
• Banks
• Vendor (seller) Finance

We do ask potential purchasers of transport or logistics business interested in our lister's featured listings/businesses to consider this important aspect of a sale transaction and ideally have in place at least indicative, if not pre-approved finance arrangements in place to an appropriate level required, prior to engaging in serious negotiations with our potential "selling" listers.

If, as a potential purchaser of a transport or logistics business, you consider that you need assistance in this area, then we can refer you our recommended panel of finance providers, noting that we do not guarantee any success in you being able to secure appropriate finance from any of these organisations and any finance arrangements secured with them are between the two parties involved and subject to the conditions of finance that each organisation trades under, to which potential purchasers need to assess and understand prior to entering into any contract or agreement to obtain such finance. Before entering into any such arrangement, we suggest that you seek professional advice from your internal or external accountant.

To take advantage of this service, please select 'Please refer me to a professional advisor' on our Contact Us form or call us on 1300 600 768.