Equipment loan · Tradies
Equipment loan for tradies
Tradies and contractors need finance that lands before the job and is repaid as progress claims and invoices clear. Utes, tools and cash-flow gaps between jobs are the usual triggers.
How an equipment loan works for tradies
An equipment loan is a secured business loan used to buy machinery, vehicles or technology, with the equipment itself as security and fixed repayments over 1 to 7 years. It covers new and used assets from dealers or private sellers. For tradies, the key is matching repayments to how money actually moves: A builder or subcontractor may wait 30–60 days for a progress claim while paying materials and wages weekly.
What tradies typically fund
- Ute or van
- Tools and equipment
- Cash flow between progress claims
- ATO and super catch-ups
Equipment loan for tradies: the numbers
| Typical amounts | $5,000 – $5,000,000 |
|---|---|
| Term | 12–84 months |
| Indicative rates | 6.9% – 16% p.a. |
| Repayments | Monthly |
| Speed | Same day to 48 hours for low-doc |
| Documents tradies usually need | ABN and licence · 6 months of bank statements · Supplier quote for any asset |
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
Business finance for tradies
Business finance for tradies covers vehicle and equipment loans plus short-term working-capital products sized to irregular, invoice-driven income.
What is equipment finance?
Equipment finance is any loan or lease used to acquire business equipment, with the equipment typically serving as security. The main structures in Australia are chattel mortgages, finance leases and rentals.
Low-doc equipment finance
Low-doc equipment finance approves smaller amounts (often up to $150,000–$250,000) without full financials, relying on ABN age, GST registration, credit history and sometimes a property-owner declaration.
Questions from tradies
Are low-doc options available?
Yes, some lenders offer low-doc pathways. Low-doc does not mean no documents or automatic approval. The information required depends on your business, the amount and the lender. Your broker will explain what is needed.
What documents will you need?
We start with a conversation about your business. To assess your options, lenders commonly need identification and recent business bank statements. Depending on the loan, they may also request BAS, financials or statements for existing debts. Your broker gives you a clear list for your situation.
What finance can a tradie get without full financials?
Most tradies with an ABN of two years or more can finance a ute, van, trailer or tools on low documentation, typically up to $150,000 to $250,000, with identification and a quote for the asset and no tax returns. Short-term unsecured loans and lines of credit are approved from six to twelve months of business bank statements. Larger amounts and property lending use financials. Lyft Money matches the paperwork to what you actually have before anything is submitted.
How do tradies fund the gap between finishing a job and getting paid?
A business line of credit or overdraft is the usual answer: you draw on it to cover wages, materials and fuel while an invoice or progress claim is outstanding, then repay it when the client pays, with interest charged only on the days it is drawn. Tradies who invoice builders or commercial clients on 30 to 60 day terms can also use invoice finance, which advances most of each invoice within a day or two. Your broker matches the facility to how your work is billed.
Can I finance my tools and equipment as well as the ute?
Yes. Tools and equipment with a resale value, such as compressors, generators, laser levels, trailers and larger power tools, can be financed on a chattel mortgage, and many lenders will bundle a tools package with the vehicle or trailer. Small hand tools are usually better bought from cash flow or a line of credit. Your broker structures the vehicle, trailer and gear so the whole kit settles together.
I have just gone out on my own. Can I still get finance?
Usually, yes. Lenders look at your trade experience as an employee or subcontractor, a deposit or property ownership and your credit history when the ABN is new, and several specialise in funding new tradie businesses for a ute and tools. The first purchase is often the vehicle, financed on low documentation, with working capital added once six months of trading shows in the bank statements. Lyft Money checks fit across the panel so you are not declined for being new.