Quick answer
Tool finance helps a tradie buy or replace a full set of tools and spread the cost over time. It suits new businesses, a stolen toolbox, a new apprentice or a change of trade. Unsecured options typically run from $5k to $500k, property-secured from $20k to $5m, for business use only, and a first enquiry involves no credit check.
Key points
- Covers whole toolkits, not just single big-ticket items
- Useful after theft, fire or a move into a new trade
- Quote-based, so itemise everything including the case or van racking
- Cheaper per month than hiring, if you use the tools every week
- No credit check when you first enquire
Ask any tradie what their toolbox is worth and you will usually get a long pause. Over years it fills with spanners, meters, saws, levels, chisels, specialty bits and the one gadget that only gets used twice a year but saves a day when it does. Replace the lot in a hurry and the bill is a shock.
That is the moment tool finance is for, and this page is about the loans-for-tools side of it: what it covers, how it differs from buying a machine, and how to line up the paperwork.
When does it make sense to finance tools?
Not every tool purchase needs a loan. A new drill bit comes out of the till. Tool finance earns its place in bigger moments:
- Starting your own business after working for someone else
- Switching or adding a trade, such as a plumber taking on gas work
- Replacing a stolen or damaged kit
- Kitting out a new apprentice or a second crew
- Moving from basic tools to a professional range that lasts
In each case the spend is lumpy and the tools earn from the first day they are on site.
How is tool finance different from financing a machine?
A machine like an excavator is a single, identifiable, resellable asset. Tools are many small items that lose value quickly and are harder to track. Lenders know this, so tool finance leans more on you than on the goods. They look at:
- how long you have been trading and in what field
- whether money comes into the business account regularly
- whether the quote is realistic for the work you do
- any deposit or security you can offer
That is why a general business loan or short-term facility is often used for tools, while asset-linked structures are reserved for plant. Our equipment loans page explains the asset-linked side.
What should be on a tool finance quote?
Lenders respond well to detail. Itemise:
| Item group | Examples |
|---|---|
| Hand tools | Sets, spanners, pliers, levels, measuring gear |
| Power tools | Drills, saws, grinders, chargers and batteries |
| Test and measuring | Meters, lasers, scanners |
| Storage and security | Tool boxes, van racking, site chests |
| Consumables to start | Blades, bits, fixings, PPE |
If you are pairing brand-new battery platforms with chargers and spare batteries, include them so you borrow the right amount the first time. For cordless-heavy kits, the power tool finance page covers the extra considerations.
Is it cheaper to buy or to hire?
Hiring suits one-off or rarely-used tools. If you reach for something every week, owning is usually the better deal, since hire charges keep ticking while the tool sits in the shed between jobs. A simple test: count how many days a year you would hire it, multiply by the hire charge, and compare that with the monthly cost of owning including servicing and insurance. The equipment payback calculator will do it with your numbers.
Want to see what you could borrow for your toolkit?
If you have a list and a quote, you can check your tool finance options. It takes about a minute, and the first stage involves no credit check.
An illustrative example
This is a made-up scenario for explanation only.
A tradie who has been employed for years decides to go out on their own. They have a handful of personal tools, but the work they plan to take needs a full kit, test gear and a locked storage setup. Buying everything at once would use up the savings meant to carry them through the first quiet weeks. They borrow for the tools and keep the savings for the slow patch, repaying from the first jobs.
The decision turns on one thing: whether the first few months of work will cover repayments and living costs. A sensible approach is to test a slow month, not just a busy one.
What about tax and insurance?
Tools used in the business may be deductible. The ATO currently shows a $20,000 limit under its simplified depreciation rules for small businesses with turnover under $10m, though the rule has been extended in the past, so check the year you buy. Our instant asset write-off page covers how to think about it. For insurance, ask your insurer exactly what is covered in a locked ute, on site and at home, because many tool claims fail on conditions.
How do I keep a toolkit safe once it is financed?
Tools that are paid off over months need protecting for months. Mark each item with an engraved ID or paint, photograph the lot and keep serial numbers in a note on your phone or a spreadsheet. Lock tools out of sight in the ute, or better, take the valuable ones home or into a site container. Ask your insurer in plain terms whether tools in an unattended vehicle are covered, what the excess is and whether there is a cap per item. A short list of what you own, with approximate dates of purchase, also makes a claim far less painful if the worst happens and gives a lender something concrete if they ask what the money bought.
Ready to see if you qualify?
A full toolkit should not take the wages budget with it. Share what you need, how long you have traded and anything you can put in. Your first enquiry carries no credit check, your information is not scattered among a heap of lenders, and a real person works on the numbers with you. Give us accurate answers so the first match is the right one, then start your tool finance enquiry.
Frequently asked questions
Can I get a loan for tools if I am just starting out?
Often yes. A new ABN with no long history can still be considered, especially with a deposit, a signed first job or security. Say plainly how long you have been trading.
Is there finance for tools I buy from several shops?
Yes, but a single combined quote or itemised list is easier than a pile of separate receipts. Lenders like to see what the money is buying.
What about tools stolen from the ute?
Check your insurance first, since some policies cover tools in vehicles under conditions. Finance can bridge the gap while a claim is processed or if cover falls short.
Do tools lose value so quickly that lenders avoid them?
Tools depreciate and are harder to repossess and resell than plant, so unsecured or working-capital finance often fits better than asset-backed finance. Trading history carries more weight.
Can I finance tools for an apprentice or employee?
If the tools belong to the business and are used for business purposes, yes. They are not for personal spending.
Short on time? Enquire right here
About 60 seconds. No credit check when you first enquire, and a real person calls you back.