Chattel mortgage · Plumbing businesses
Chattel mortgage for plumbing businesses
Plumbing finance is asset and cash-flow lending for plumbing contractors, funding fitted-out service vehicles, jetters and camera equipment, and the materials and wages carried between invoicing and payment.
How a chattel mortgage works for plumbing businesses
Chattel mortgage is the default structure for plumbing vehicles and larger equipment: you own the asset from settlement and, if registered for GST, generally claim the GST on the full purchase price in the next BAS rather than spreading it over payments. Interest and depreciation are deductible to the extent the asset is used in the business. For a sole operator adding a second van, that upfront GST claim often covers the first few months of repayments. Your accountant should confirm.
The cash-flow pattern we plan around
Fast payment on domestic service work alongside 30–45 day progress claims on construction jobs, with trade account materials due on 30-day terms regardless.
What plumbing businesses typically fund
- Fitted-out service vans and utes
- Jetters, drain cameras and locators
- Pipe relining equipment
- Materials and trade accounts between invoices
- Apprentice wages and licensing costs
Chattel mortgage for plumbing businesses: 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 plumbing businesses usually need | ABN and plumbing licence details · 6 months of business bank statements · Quote for the vehicle, fit-out or equipment |
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
Plumbing equipment finance
Plumbing equipment finance is secured lending for the tools of the trade — jetters, CCTV drain cameras, relining rigs and vehicle fit-outs — usually written over two to five years against the equipment.
Trade account gap
The trade account gap is the period between a plumbing supplier’s 30-day account falling due and the client paying the invoice for the job those materials were used on.
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 plumbing businesses
Can a plumber finance a fitted-out van or ute with the fit-out included?
Yes. Racking, drawers, pipe tubes, roof racks, a canopy and signage can be financed with the vehicle when quoted together, so the whole working vehicle settles at one rate. Plumbers with two years of ABN history are usually approved on low documentation within a day.
Can jetters, cameras and locators be financed?
Yes. Jetting units, drain cameras, pipe locators, excavation equipment and trailers are financed as equipment over three to five years, and several items can be bundled into one contract. A jetter and camera set-up often pays for itself in a few months of drain work.
How do plumbers fund materials on construction jobs paid in arrears?
Invoice finance against progress claims and a line of credit cover trade account materials and wages while builders take 30 to 45 days, and domestic service income keeps day-to-day cash moving. A broker sizes the facility to your mix of service and construction work.
Can a plumber get finance without tax returns?
Yes. Plumbers with an ABN of two years or more and clean credit are commonly approved for vehicles and equipment on low documentation up to around $150,000 to $250,000, and unsecured loans are approved on six to twelve months of bank statements. Larger amounts use financials.