Quick answer
Tradie finance isn't one product. A slow progress claim or wages gap suits cash flow finance or a line of credit. New tools or machines suit equipment finance, where the asset is usually the security. A ute or van goes through a vehicle lender. Bigger or faster amounts can use property security. Match the product to how long you need the money and what it's for.
Key points
- Pick the finance by the problem and how long you'll need the money, not by the product name
- Short gaps (a late progress claim, wages) and long assets (a machine) need different tools
- For an asset purchase, the asset itself can often be the security
- Business.gov.au says an overdraft suits short-term gaps, not capital purchases
- Statements, ABN history and what you owe do most of the talking, so tidy them first
Search “tradie finance” and most of what you’ll find is a lender telling you how great it is. Nobody asks the useful question first: what’s actually going wrong on your desk this week?
A late progress claim, a dead compressor, a ute that’s seen better days and a tax bill all look like “I need money”. They’re four different problems, and each has a finance type built for it. Pick the wrong one and you either pay for flexibility you didn’t need or tie up a long loan on a short gap. Here’s the map, problem first.
Which finance fits which tradie problem?
| Your problem | What usually fits | What it leans on |
|---|---|---|
| Customer’s progress claim is 45 days late and wages are due | Cash flow finance, line of credit, invoice finance | Turnover and statements |
| A machine or tool set to buy | Equipment finance (hire purchase, chattel mortgage, lease) | The asset, plus your trading history |
| A ute, van or trailer | Vehicle finance | The vehicle, handled by a vehicle specialist |
| Materials for a big job before the first payment | Materials finance, supplier trade credit | The job and your supplier history |
| A large or urgent amount, or a bigger project | Property-secured loan | Real estate security |
| A mark on your credit file | Any of the above, assessed case by case | Why it happened and how recent it is |
Business.gov.au lays out the same split: debt products like loans, lines of credit, hire purchase, chattel mortgages and leasing each suit different needs. Its advice for vehicles and equipment is to compare buying and leasing first, then look at loans, hire purchase, chattel mortgages or supplier credit. The rest of this guide fills in the trade detail.
When the problem is a slow payer
This is the most common one on a trade crew. You’ve done the work, the builder’s accounts team has the invoice, and your subbies and supplier want paying now.
Three tools fit here:
- Cash flow finance: a lump of working capital to cover wages, materials and bills until the customer pays. See cash flow loans for tradies.
- Line of credit: a limit you draw on when needed. Per business.gov.au, it’s a revolving limit where you pay interest only on what you’ve drawn, so it suits lumpy income. Our line of credit guide covers it.
- Invoice finance: you borrow against unpaid invoices. It fits if you invoice a few solid commercial customers, and less well if your work is many small residential jobs. See invoice finance for tradies.
An overdraft sounds like the obvious answer, but note what business.gov.au says: it’s suited to short-term gaps, not capital purchases or long-term finance. If your gap is a regular thing, rather than a one-off, a limit that stays available usually serves you better than one you top up and clear.
If the gap is a repeating pattern, the Cash Flow Gap Planner shows how big it gets and how long it lasts. That tells you what size and type of facility to ask for.
When the problem is a tool, a machine or a rig
Equipment is the opposite case. You’re not covering a gap, you’re buying something that should earn for years. The finance should run about as long as the useful life of the kit.
The usual structures, per business.gov.au:
- Hire purchase: you pay the asset off in instalments and own it at the end. A larger final “balloon” payment can lower the instalments.
- Chattel mortgage: you borrow to own the item from day one.
- Lease: you use the equipment without owning it at the start. Our loan versus lease guide walks through the choice.
For an asset purchase, the asset itself can often serve as security, so you don’t need to put up the house. That’s a big reason equipment finance is often easier to get than a general loan of the same size. See equipment finance for tradies for the machine-by-machine detail, and run the numbers through the Equipment Payback Calculator before you sign. A machine that can’t pay for itself in the jobs you realistically win is a bad buy however it’s funded.
On tax: the ATO’s instant asset write-off lets eligible small businesses claim an immediate deduction for assets under a set price, and the threshold was $20,000 per asset for the 2025–26 income year. Thresholds have been changing year to year, so check the ATO’s instant asset write-off page for the income year you’re buying in, and ask your accountant before timing a purchase around it. The deduction helps your tax bill, not your cash flow on the day you pay.
When the problem is a ute, van or trailer
Vehicles are their own world, with their own lenders and their own rules on age, kilometres and ABN buyers. We send readers to a vehicle specialist for that: a vehicle finance specialist handles ute, van, truck and trailer finance. If you’re still deciding whether to finance at all, read ute finance or pay cash first.
Keep the vehicle and the cash flow questions separate. A ute loan doesn’t fix a late-payment problem, and a cash flow facility is a poor way to buy a ute.
When your credit file has a mark
A default, a late payment or a past ATO arrangement doesn’t automatically end the conversation. Past credit issues are considered case by case. The questions a real person will ask are practical ones:
- What happened, and was it a one-off (a bad quarter, a customer who went under) or a pattern?
- How long ago was it, and is it paid or still open?
- What do the last six months of bank statements show?
If your statements are healthy and the mark is old or explained, there’s usually something to work with. Our bad credit options for tradies page goes through it, and how to read your own credit file as a sole trader helps you see what a lender will see before they do.
When the amount is big, or the timing is tight
Larger amounts, or ones needed faster, can be arranged against property. We write property-secured finance, such as first and second mortgages and caveat loans, in amounts from $20,000 to $5,000,000, for business purposes only. It suits an owner with real estate who needs more than an unsecured facility would give.
The trade-off is plain: your property is on the line if things go wrong. Compare it honestly with unsecured routes. As business.gov.au puts it, secured loans are backed by collateral and the lender can take it on default, while unsecured loans put no assets at risk and are judged on the health of the business. If you’re unsure which to ask for, that’s a good thing to talk through with a person.
Whatever type you choose, ask whether a guarantor is needed. Business.gov.au says to decide who’d guarantee the loan before you apply, and it’s better to know that going in than to find out late.
What do lenders want to see, whichever type you pick?
The documents differ a little by product, but the list from business.gov.au is a fair guide: proof of identity, financial reports including cash flow statements if you have them, forecasts, lease agreements and your personal financial information. For a tradie that usually boils down to:
- Bank statements that show the real flow of work. See bank statements for tradies.
- ABN age and turnover, with BAS to back it up.
- A work-in-progress list showing what’s been quoted, started and invoiced.
- What you already owe, including tool, ute and supplier accounts.
Our Loan Readiness Checklist runs through all of it in a few minutes, and why lenders are tough on tradies explains why they ask.
A worked example (illustrative only)
Say a plumbing crew of three has a commercial fit-out that’s 50 days into a payment cycle, and the owner is also eyeing a second-hand drain camera.
These are two separate needs. The late claim is a cash flow problem, so it gets a short-term facility sized to cover one pay cycle of wages and materials, repaid when the claim lands. The camera is an equipment purchase, so it’s financed over its useful life with the camera as security. If the owner stuffed both into one loan, they’d be paying for the camera’s life on a gap that closes in two months, or using a gap facility to buy kit. Splitting it keeps both cheaper to carry and cleaner on the statements.
Not sure which one you need?
That’s normal, and it’s exactly what the enquiry is for. Tell us what’s going on and we’ll work out which kind of finance fits. Start your enquiry here and tell us what’s landed on your desk.
Ready to see where you stand?
You’ve seen the map. The next step is finding out which road is open for your business, and that’s a conversation rather than a guess.
The enquiry takes about 60 seconds, and there’s no credit check when you enquire, so asking won’t touch your credit file. We don’t send your details to a pile of lenders, so your phone won’t light up with calls from people you’ve never heard of. A real person looks at your situation and calls you to talk it through.
One favour: fill the form in accurately, including the awkward bits like an old default or a tax arrangement. It lets us point you to the right option first time instead of the one that looks good on paper.
Frequently asked questions
What types of finance can a tradie get?
The main ones are a business loan (secured or unsecured), a line of credit or overdraft, invoice finance, equipment finance such as hire purchase, a chattel mortgage or a lease, supplier trade credit, and vehicle finance for utes and vans. Which one fits depends on whether you're covering a short gap or buying something that lasts.
What's the difference between cash flow finance and equipment finance?
Cash flow finance is flexible money for running costs such as wages, materials and bills while you wait to be paid. Equipment finance is tied to a specific asset, like a skid steer or a compressor, and that asset is usually the security. One covers a gap, the other buys something that earns for years.
Can a sole trader tradie get business finance?
Yes. Lenders look at your ABN history, turnover and bank statements. A sole trader can borrow in their own name for business purposes. A longer, steadier trading record makes it easier, but a newer business can still be assessed on the work in front of it.
Can I get tradie finance with bad credit?
Often there's still a path. Past credit issues are considered case by case. What matters is why the mark happened, how recent it is and whether your current statements show the business trading well. Be upfront on the form, because a surprise found later slows things down.
Do I need property to get a loan as a tradie?
No. There are unsecured and cash flow options for trading businesses without property. Property-secured loans, such as first and second mortgages or caveat loans, are there for larger or faster amounts, and can suit if you own real estate.
Will asking about finance affect my credit score?
Not with us. The 60-second enquiry involves no credit check. A credit check only comes into play if you decide to go ahead.
Short on time? Enquire right here
About 60 seconds. No credit check when you first enquire, and a real person calls you back.