How do I explain a courier firm’s vehicle loans to a new lender?

Begin by gathering the loan statements and matching them to specific vehicles. A single table is enough. For each line, show which van or truck it covers, who the lender is, how much is owing, the payment and when it ends. Mark any vehicles that are fully paid and any that are owned by drivers.

Next, explain the plan. A new lender will ask whether the existing loans will be repaid at closing, assumed by the buyer or refinanced as part of the new loan. The answer changes how much new borrowing is needed and who holds claims on the vehicles. Ask your lawyer how existing claims against the vehicles are cleared or kept.

Then show how the loans fit the business. Compare the combined payments with what the routes earn, and explain how drivers and fuel costs fit into that. If a loan came from a time when work was slower, say so. Also explain any late payments or changes you made. Read the lender’s wording on conditions that apply during the loan, and ask your accountant to review the package. Honest, organized information usually helps most. Keep copies of the original loan agreements ready, since a lender may ask to confirm the wording on the vehicles named.

Key takeaways

• Build one schedule matching each loan to a specific vehicle.
• Say whether each loan will be paid out, assumed or refinanced at closing.
• Explain any late payments or changes before the lender asks.