Transport and haulage company insolvency

Transport, haulage and logistics companies run on thin margins and heavy fixed costs, which makes them sensitive to shocks. Fuel is a large and volatile cost, vehicles are usually bought on finance or lease with fixed monthly payments and often personal guarantees, and driver shortages have pushed up wages. A lost contract, a fuel spike or a major customer paying late can quickly create arrears, frequently with VAT and vehicle finance among the first to slip. Because so much of the fleet is financed, a transport director's personal exposure through guarantees can be significant, so understanding that position early is important. If your transport business is struggling, the usual routes apply, Time to Pay, a CVA, administration or liquidation, but the asset finance and guarantees on the fleet make specialist advice valuable. A Licensed Insolvency Practitioner can help you deal with the financed vehicles and any personal guarantees as part of a single plan rather than facing each lender separately.

Fuel, finance and guarantees

Volatile fuel costs, fixed vehicle finance payments, and driver wages squeeze margins. Much of the fleet is financed, often with personal guarantees, so a director's exposure can be significant.

Dealing with financed vehicles

Financed and leased vehicles are dealt with as part of the insolvency, and any guarantees can often be negotiated. Use our guarantee exposure checker to total your position.

Common questions

What happens to financed vehicles if my haulage company fails?

Financed or leased vehicles you do not own are generally returned to or dealt with by the finance provider. Where you gave a personal guarantee, the lender may pursue you for any shortfall, though that is often negotiable.

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Transport and haulage company insolvency. Transport, haulage and logistics companies run on thin margins and heavy fixed costs, which makes them sensitive to shocks. Fuel is a large and volatile cost, vehicles are usually bought on finance or lease with fixed monthly payments and often personal guarantees, and driver shortages have pushed up wages. A lost contract, a fuel spike or a major customer paying late can quickly create arrears, frequently with VAT and vehicle finance among the first to slip. Because so much of the fleet is financed, a transport director's personal exposure through guarantees can be significant, so understanding that position early is important. If your transport business is struggling, the usual routes apply, Time to Pay, a CVA, administration or liquidation, but the asset finance and guarantees on the fleet make specialist advice valuable. A Licensed Insolvency Practitioner can help you deal with the financed vehicles and any personal guarantees as part of a single plan rather than facing each lender separately.

Help for a transport and logistics business in difficulty

Tell us briefly what is happening and we will arrange a free, confidential, no obligation introduction to the right expert for your situation, whether that is a turnaround adviser, a tax specialist or a licensed insolvency practitioner. The earlier you get advice, the more options you usually have.

Free, confidential and no obligation. We are an independent information service and introduce directors to the right vetted expert for their situation. This is general information, not regulated advice.