So your business needs a truck or trailer and you have realized it’s best for your business cash flow to fund your asset through bank finance.
Here at Truckoo, we help you find the best bank finance deal through the partnership we have with Commercial Finance.
When purchasing a vehicle for your business you can either use the cash flow of the business or you can seek funding from a bank.
In my experience of selling commercial vehicles, most businesses and individuals prefer to use their cash flow, which is safer but it really limits the growth of your business.
Every successful business you can think of in the world, has received funding at some point from the banks, so why don’t you?
Is it because you want to remain small serving just your local community or does growth scares you?
Whatever your reason might be, I am sure you have already made the conclusion that you would want your business to grow and serve the whole country or even the whole world and make you wealthier while you are at it.
I wrote this article to explain to the masses, particularly those that run transport and logistics businesses the advantages of getting banks to finance your next fleet of trucks or trailers.
By the end of this article, you should have the knowledge of how to acquire bank finance, how you plan your downpayment, and which commercial vehicle models are best suited for bank finance.
How The Bank Finance Application Works
After you have chosen your desired truck or trailer which you want to procure from one of our dealership partners, our team will request a bank quotation from the dealership.
For the rest of the documentation, we will require from you\company.
We have written a step-by-step guide that you can follow when you are ready to get bank finance for your business.
You can also contact one of our sales consultants that will gladly assist you in filling out all the required application forms.
Why Work With Us
It could be a very daunting task to approach banks seeking finance, at the same time you are also looking for a trustworthy dealership to work with.
We at Truckoo have removed all that stress
We will be with you in selecting the best vehicle, we will assist you with inspection or even test drives if necessary.
We have a lot of experience dealing with commercial vehicle buyers and sellers and during our course of doing business in this industry, we have recognized the best dealerships that offer reliable trucks and after-sale services to our customers.
When you work with Truckoo, all you have to do is provide us with the necessary documentation and fill up a simple application form which one of our sales consultants will walk you through.
When that is done, you just sit back and wait while we do all the boring stuff for you.
It only takes us a maximum of 72 hours to give you feedback on whether your company got approved or not.
How To Apply For Bank Finance
On how to apply for finance we have curated a step-by-step guide you can follow to get your bank finance approved in less than 72 hours.
You don’t have to do much on your part, Truckoo will liaise with the banks and the dealership to make sure we remove all the headaches of buying a reliable truck through bank finance.
Deposit And Downpayment
Most banks in South Africa will require a minimum deposit of 10%.
Some lenders will request you to pay the deposit direct to the dealership you are purchasing your vehicle at.
Depending on your credit record some banks might not even require this downpayment.
Your monthly repayment plan will include the cost of the loan which is your interest and the money which you were lent (capital repayment).
When financing a truck or trailer you can get a repayment period of 6 months to a maximum period of 72 months.
You must also note that the longer the duration of your repayment period, the more it’s going to cost you in terms of interest rates.
Interest Rates
Interest rates for commercial vehicle financing vary according to a number of things which include the deposit you paid, the year model of your vehicle, and the general condition of the vehicle.
Currently, the general prime lending rate in South Africa is sitting at 7,5% to prime plus 10%.
Most banks will not even finance a vehicle that they consider old, which is most vehicles older than 10 years.
The few banks and finance houses that do finance such vehicles usually increase their interest rates by 20%.
Commercial Finance Partners
Commercial Finance is a representative of all major South African Banks. Through their partnership, your bank finance application can be sent to all the major banks or specifically the ones chosen by you. All this is done to get the best finance deal, with the lowest interest rates and the shortest time possible.
Auction Finance is an authorized, Financial Service Provider.
FSP: 34936
Listed below are banks and finance houses we work with in partnership with Commercial Finance to acquire finance for you.
