Most new hauliers are experienced drivers who want to work for themselves. The driving is the easy part. The hard part is that a lender sees a new business with no trading history, and the Traffic Commissioner needs proof you have the money to run safely. Here’s how to tackle both.
What you need before the truck
| Item | Typical cost or amount |
|---|---|
| Financial standing (standard licence, 1 HGV) | £8,000 held in the business account |
| O-licence application fee | A few hundred pounds (check GOV.UK for the current fee) |
| Transport Manager CPC (if you’re your own TM) | Course and exam fees |
| Truck deposit plus VAT | 10–30% of the price, plus 20% VAT on HP |
| Insurance (vehicle, goods in transit, public liability) | Often the biggest surprise for new operators |
| Operating centre and maintenance contract | Varies by area |
What lenders want from a new operator
- Several years of HGV driving experience, shown by your licence and work history.
- A deposit of 20% or more, plus the VAT.
- A personal guarantee, and ideally homeowner status.
- Evidence of work: a contract, subcontracting agreement or letter of intent.
- A business plan with a cash-flow forecast that shows you can cover the payment in a quiet month.
- The O-licence granted or applied for.
A first truck: used tractor unit
A £45,000 used tractor unit with 20% (£9,000) deposit at a start-up rate of 13.9% over 48 months costs about £981.95 a month, with £11,134 of interest over the term. Plan for the VAT on top at the start, which you’ll reclaim once you’re VAT-registered.
Documents for a start-up application
- Photo ID and proof of address
- C+E licence, Driver CPC card and tachograph card
- O-licence or application reference, with your financial standing bank statements
- Company registration or sole trader details, and VAT registration
- Business plan and 12-month cash-flow forecast
- Contracts or letters of intent from customers
- Personal bank statements for the last 3–6 months
- SA302s or P60s from your employment, to show your income history
- Truck quote with VIN, mileage and price
- Insurance quote
For the full list, see our UK HGV finance documents checklist.
Frequently asked questions
Can I get truck finance with no trading history?
Yes, from lenders that specialise in start-ups. Expect a larger deposit, a personal guarantee and a higher rate.
Should I start on a restricted or standard licence?
If you’ll carry goods for other people for payment, you need a standard licence. A restricted licence is only for your own goods.
Is it better to start with a used truck?
A used truck keeps the deposit and payments down, but lenders limit the age at the end of the term and repairs can hurt cash flow.
