Finance for tradies, shaped around how you get 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.

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.

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.

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.

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.

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.

Often no deposit is required, particularly for established businesses buying standard assets from a dealer. A deposit is more likely where the business is new, the asset is older or specialised, the credit profile is weaker, or the amount is large relative to turnover. Deposits typically range from around 10% to 30% in those cases. Putting money in reduces the amount financed and can improve the terms offered, but it is not always necessary.

The common ones are an establishment or documentation fee charged at settlement, a monthly account-keeping fee, and a PPSR registration fee for recording the lender's interest in the asset. A brokerage fee may also apply, which we disclose to you in writing before anything is submitted. Some agreements include an early termination or break cost. Fees vary by lender and are typically a modest part of total cost compared with the interest, but they should still be compared.

Lenders publish maximum residual or balloon percentages that fall as the term lengthens, because the asset is worth less at the end of a longer term. For a vehicle, a common pattern is up to roughly 50% on a two-year term, reducing to around 20% to 30% on a five-year term. The ATO also sets minimum residual values for finance leases. A larger balloon lowers monthly repayments but increases total interest and leaves a lump sum to deal with at the end.

It is far less common than it once was. Under hire purchase the financier owns the asset and you hire it, with ownership transferring automatically after the final instalment. Since the GST changes that made chattel mortgage more attractive for businesses accounting on a cash basis, most equipment lending is written as a chattel mortgage or lease instead. Some lenders still offer commercial hire purchase, and your accountant can advise whether it suits your circumstances.