Your checklist before applying for commercial truck finance

Published on November 19th, 2020
  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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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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This guide provides general information and does not consider your individual needs, finances or objectives. We do not make any recommendation or suggestion about which product is best for you based on your specific situation and we do not compare all companies in the market, or all products offered by all companies. It’s always important to consider whether professional financial, legal or taxation advice is appropriate for you before choosing or purchasing a financial product.

The content on our website is produced by experts in the field of finance and reviewed as part of our editorial guidelines. We endeavour to keep all information across our site updated with accurate information.

Approval for commercial loans is always subject to our lender’s terms, conditions and qualification criteria. Lenders will undertake a credit check in line with responsible lending obligations to help determine whether you’re in a position to take on the loan you’re applying for.

The interest rate, comparison rate, fees and monthly repayments will depend on factors specific to your profile, such as your financial situation, as well as others, such as the loan’s size and your chosen repayment term. Costs such as broker fees, redraw fees or early repayment fees, and cost savings such as fee waivers, aren’t included in the comparison rate but may influence the cost of the loan. Different terms, fees or other loan amounts may result in a different comparison rate.

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