Financing a Truck
I need a contract to finance a truck, can you assist me?
I personally could have made a good few Million by now if my thoughts were unethical and if I intended to become a multi-millionaire overnight by defrauding people like you and others eager to get into the Transport Industry.
We do not issue contracts to finance a truck - That is our Policy!
First things first: If anyone offers you a "5 year contract" and a "Truck" with your "small deposit" to finance the balance - in all likelihood this is a scam. Your small deposit is all he is after.
It is just not possible - Not in legitimate trade anyway, unless you have the "right connections" in the right place.
let me explain why!
Assuming we issue a contract to you today and we fill our places in the next week (which is our priority of-course), then what happens when your truck arrives and there is no work or no space for your truck on that contract we issued to you? We do not have the luxury of waiting for your truck to be delivered - We are under pressure from our clients and we have to operate on a First come First served basis.
If for whatever reason, we do not place your truck, then you can sue us for for not meeting the obligations of the contract.
Secondly we can only subcontract you - so you recieve what we refer to as a "Sub-contract" - Banks do not finance trucks on the basis of a subcontract, unless the contract holder is prepared to sign surety etc - But this you will understand we cannot do.
So this is the catch 22!
Banking institutions in South Africa are absolutely naive by thinking that a client will contract someone who has yet to purchase a truck(s) - Let alone the fact that the client must be a blue chip company like BHP Billiton or Anglo American etc. Unless you are "well, well, well, connected" this will never be a reality, unfortunately.
Long story short and I hate to have to shatter your dreams - Please do your homework when someone offers you a contrtact and a truck for a small deposit. If you are a cash truck buyer - different story. When we subcontract, your truck must be virtually immediately ready. The Transport Industry is very competitive - Action speaks louder than words. If we do not act fast enough, we lose.
Therefore, we only subcontract trucks that exist and not trucks that must still be financed pending a contract.
Having said all of the above, we are always exploring and discussing new and innovative ways for new entrants into the industry, empowering PDI's etc. and we will keep you posted - Stay in touch with the website and we will overcome these barriers. Let's hope that we secure something solid for the enthusiastic entrepreneurs SOON!
Please do your due diligence before burning your fingers!
Last Updated (Thursday, 14 January 2010 20:30)