Chattel mortgage · Electrical contractors
Chattel mortgage for electrical contractors
Electrical contractor finance funds fitted-out vehicles, test and installation equipment and elevated work platforms, plus the working capital needed to carry cable and switchgear costs on commercial and solar projects.
How a chattel mortgage works for electrical contractors
For a GST-registered electrical business, a chattel mortgage over a van, ute or elevated work platform means ownership from day one and a GST claim on the purchase price in the following BAS. Interest and depreciation are deductible to the extent of business use. Where a contractor does regular high-bay or warehouse work, comparing a scissor lift repayment against a year of hire invoices is a worthwhile exercise — owning frequently wins, and the chattel mortgage keeps the asset on your balance sheet.
The cash-flow pattern we plan around
Large materials outlays at the start of each project against progress claims paid 30–45 days in arrears, with retention held to practical completion.
What electrical contractors typically fund
- Fitted-out service vans and utes
- Test, certification and thermal imaging equipment
- Scissor lifts and elevated work platforms
- Cable, switchgear and solar componentry up front
- Apprentice wages and licensing
Chattel mortgage for electrical contractors: the numbers
| Typical amounts | $10,000 – $2,000,000 |
|---|---|
| Term | 12–84 months |
| Indicative rates | 6.9% – 14.5% p.a. |
| Repayments | Monthly (weekly or fortnightly available) |
| Speed | 24–48 hours for low-doc up to $150k; longer for full-doc |
| Documents electrical contractors usually need | ABN and electrical contractor licence · 6–12 months of bank statements · Equipment or vehicle quote, or materials purchase order |
Rates are indicative, change without notice and depend on the lender, product, asset, term and your credit profile at the time of application. They are not an offer of finance. Comparison rates, where shown, are true only for the example given.
Key terms
Electrical contractor finance
Electrical contractor finance is lending to licensed electrical businesses covering vehicles, test and access equipment, and working capital for the materials purchased ahead of progress payments.
Materials-up-front exposure
Materials-up-front exposure is the cash a contractor commits to cable, switchgear and componentry at the start of a project, before any part of that project has been claimed or paid.
What is a chattel mortgage?
A chattel mortgage is a business loan used to buy a movable asset (a chattel) such as a ute, truck, excavator or equipment. The business takes ownership immediately and the lender registers a security interest over the asset until it is paid off.
Chattel mortgage balloon payment
A balloon is a lump sum, typically 0–40% of the purchase price, paid at the end of the term. It lowers regular repayments but must be paid, refinanced or covered by selling the asset when the term ends.
Questions from electrical contractors
Can an electrician finance a fitted-out van and an elevated work platform?
Yes. Vans with racking and fit-out, scissor lifts, boom lifts and trailers are financed as vehicles and equipment over three to five years, and several items can be bundled. Established electrical contractors are usually approved on low documentation within a day.
How do electrical contractors fund cable and switchgear on big projects?
A line of credit or a short-term loan covers materials at the start of each project, and invoice finance advances against progress claims so wages are covered while claims sit 30 to 45 days in arrears. Trade finance can pay wholesalers for large switchgear orders with extended terms.
Can solar installers finance stock ahead of installations?
Yes. Trade finance and lines of credit fund panels, inverters and batteries ahead of installations, and are repaid as customers and rebates are paid. Lenders like solar businesses with steady installation volumes and a clean claims history.
What do lenders look for in an electrical contracting business?
Consistent claim and invoice income in the bank statements, a licence and insurances, a work-in-hand schedule, tax up to date and a clean credit file. Established contractors are often approved on bank statements alone; new businesses need a deposit or a trade background.