Your checklist before applying for commercial truck finance

Written by 
Bill Tsouvalas
Bill Tsouvalas is the managing director and a key company spokesperson at Savvy. As a personal finance expert, he often shares his insights on a range of topics, being featured on leading news outlets including News Corp publications such as the Daily Telegraph and Herald Sun, Fairfax Media publications such as the Australian Financial Review, the Seven Network and more. Bill has over 15 years of experience working in the finance industry and founded Savvy in 2010 with a vision to provide affordable and accessible finance options to all Australians. He has built Savvy from a small asset finance brokerage into a financial comparison website which now attracts close to 2 million Aussies per year and was included in the BRW’s Fast 100 in 2015 as one of the fastest-growing companies in the country. He’s passionate about helping Australians make financially savvy decisions and reviews content across the brand to ensure its accuracy. You can follow Bill on LinkedIn.
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, updated on June 6th, 2023       

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If you have set your mind on purchasing a truck, then you ought to get acquainted with the basic steps this process involves. A lot of people consider this move to be quite challenging. While that is true to some extent, still, it is utterly important that you know what lenders expect from you, as a borrower, so you can increase your chances of getting approved for receiving equipment finance.

Truck finance is usually provided to a business owner that required a piece of equipment to assist in running thier business. When it comes to equipment finance, lenders usually take a different approach to lending & they usually take the following aspects into consideration:

Know how much money you need

Before discussing with a lender, it is advisable you have an estimate sum of money in mind. Plus, you should prepare your proposed repayment options and length of the loan as well.

Determine the truck you wish to purchase

It is important that you do your research concerning the truck or any other commercial utilities or bus you want to buy. Stating the exact vehicle you have in mind will help the lender to establish to what extent the chosen truck is adequate to achieve the business outcome.

Cash flow forecast

Commercial finance approval predominately comes down to assessing your companies cash flows. If your fortunate enough to have been in business for more than 2 years and your financial statements are a true indication of your present situation in regards to cash flows than usually, that is enough for a financial institution to provide you with formal approval. on occasion however, financial statements don't always paint the best picture and do not give a true indication of current or future cash flows. This is when a comprehensive cash flow statement can provide the lender with enough information to make a more informed decision of what your true lending capacity is. It is recommendable you hire a professional accountant to help you to project a cash flow forecast if required.

Assets and liabilities

When evaluating finances, lenders will always take into consideration the borrower's assets and liabilities. So please prepare your A & L statement best you can, you will need to present current debts, current repayments, and other investments you may have at the moment.


In most cases the lender will only take security over the vehicle (truck) that you purchase. Personal property such as your personal home usually do not form part of any commercial transaction.

Establish the type of loan you want

Truck loans differ from one another, thus, you must establish what you wish to opt for and this usually comes down to how whether you account on a cash basis or an accruals basis. The 3 available products are a chattel mortgage, hire purchase or lease and your credit history may impact the available products. Before making your decision, it is best you discuss with your accountant, who knows your financial status and business requirements best.

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