A stalwart of the commercial vehicle financing industry is WesBank, with a substantial portfolio of trucks and trailers, and an estimated market share of 10 percent. According to WesBank spokesperson Chris de Kock, Executive Head Sales and Marketing: 

“The trucking industry has been directly influenced by the global economic crises, the reduction in demand for commodities as well as the reduction in demand from consumers. Reduction in volumes has created excess capacity in the road freight industry. Both new entrants as well as existing operators are as a result finding it extremely difficult to prove affordability or sustain existing fleets. Some established operators have been able to utilise efficiencies of scale to reduce rates in order to stay in business. However, even they are downsizing fleets and cancelling sub-contractor’s contracts. As a result of this, the banks in general have adopted a more cautious approach not only in the trucking business, but rather in all sectors of the economy where there has been a contraction in demand as a result of the global economic slowdown. 

“As with all requests for finance, WesBank assesses each application on its own merits and take factors such as the industry, the owner's experience and fleet size, cash flows and existing contracts into account. When approaching the bank for finance, the prospective truck/trailer buyer needs to have as much up to date information available as possible. Typically this information must include audited financial statements, latest management accounts, business plan and detailed cash flow projections as well as copies of contracts. 

“Successful applicants are those that have experience in the daily management of a trucking or logistics company. A new entrant to the market must have a proven track record of setting up and/or managing successful businesses as well as have managers with the applicable experience in the trucking industry in key positions.” 

Those are the ‘ducks’ then. Get yours in the required ‘row’ and you will get the finance you need. Maybe!