How to Finance a Used Truck or Trailer in South Africa

Impala Truck Sales > News & Reviews > How to Finance a Used Truck or Trailer in South Africa

How to Finance a Used Truck or Trailer in South Africa

3rd Mar 2021 / Comments 57 / 5797 / News & Reviews
How to Finance a Used Truck or Trailer in South Africa
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Investing in a used truck or trailer can be an expensive exercise, especially as the owner of a transport business. Whether you are in freight, logistics or any other area of trucking, finance is a top priority that will get your business on the road. Impala Truck Sales offers assistance with finance through all major South African banks, however we do not allow for in-house financing. Here are a few important tips from Impala Truck Sales, who can help you arrange truck finance.


As a self-employed individual who generates income on your own, there are a few important points to consider when applying for finance on a used truck or trailer. The first point is that, in order to qualify, you need to have been trading for a minimum of 18 to 24 months.

It is important to financiers that you can prove you have already established a workable business income With that in mind, you will also have to prove that there is constant and sustainable income flowing into the business – using bank statements or other proof of income. And you must be able to prove that you are established in the industry you will be servicing as a transport provider.


As a business (closed corporation, company or trust), your company will need to provide key documentation. This includes a valid Companies Intellectual Property Commission (CIPC) document that includes the company trading name – on the  provision that the company has been trading for a minimum of 18-24 months (generally).

You will need to prove that the company has been trading consistently. For example, if there has been zero income for a period of two to five months, your application will most likely not be successful. Start-ups are also generally ruled out and, once again, the industry must be suitable for the used truck or trailer’s intended purpose. i.e., a law firm would be unsuccessful in applying for finance for a freight business. 


Letters of intent are not considered. You would need more to back up your application. The promise of new business can be a huge risk to a bank. And as a rule, until the business has actually materialised, it cannot be the main reason for buying a used truck. Therefore, the company should be able to prove that it is already active in the industry in question – for example, construction or mining – before it qualifies for truck finance.

While many people “win” tenders or letters of intent, they are not necessarily established in the industry within which the tender was applied for, or currently earn a salary but want to venture into their own business. These applications are likely to be declined, as third-party financiers would do the same.

If there is already a contract in place with a client, the contract could be used to substantiate the application.. A contract is unfortunately as good as the paper it is written on, because the exit clause is always in the contract awarder’s favour. It is very important to keep in mind that it only becomes valid if it has been in place historically. The banks will consider new contracts in some cases, but this will only happen if the applicant has been trading in transport for two years or more and has a solid credit profile.


Unfortunately, cross-border finance is not possible through Impala Truck Sales but referrals to reputable financiers can be made. Non-SA citizens, however, can qualify for finance if their permits allow them to trade in South Africa (companies only). The permit must state its date of expiry and the finance will then only be valid for that stipulated period. Keep in mind that Impala Truck Sales can assist with the exporting of trucks and trailers.


Again, unfortunately, even if someone is prepared to sign surety for you, the main applicant for finance still needs to qualify for the minimum affordability requirements before surety is considered.

General points to remember when applying for used truck or trailer finance from Impala Truck Sales:
  • Clients listed on ITC, under debt review or sequestration will not be considered for finance.
  • Salary earners looking to buy commercial assets will not be considered.
  • If any company directors do not have a healthy credit record, finance will not be considered.
  • All the required information must be supplied.
Important documents needed for finance
Private individuals
  • Identity document
  • Three most recent bank statements
  • Three most recent salary slips
  • Proof of residence (not older than three months)
  • Valid driver’s license
  • Latest company registration documents.
  • Latest full three months’, bank stamped statements in company name (no internet statements will be accepted) unless prior arrangements have been made.
  • Latest audited and signed financials.
  • Identity documents of all members of the company.
  • Proof of company’s physical address and proof of residence for directors.
  • Ownership declaration form.
  • Comprehensive company background.

To find out what your monthly finance costs with Impala Truck Sales might be, try the easy Impala Truck Sales finance calculator. Contact Impala Truck Sales to find out more.

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