Quick answer
Business loans for trades fund tools, work vehicles, materials and cash flow gaps for electricians, plumbers, carpenters, tilers and other trades. Many tradies are sole traders or young businesses with late tax returns, so alternative lenders that use bank statements, equipment finance on the asset itself and property-secured loans are the most common options.
Key points
- Fund tools, vehicles, materials and tax bills
- Sole traders and new ABNs considered
- Bank statements often replace late tax returns
- Equipment finance uses the asset as security
Busy does not always mean cash in the bank
Most trade businesses are short of cash at exactly the moments they are busiest. A big job means more materials, more hours and maybe an extra apprentice, while the payment arrives weeks after the work is done. Add a tax bill after a strong year, a van that needs replacing and a client who pays late, and even a profitable trade business can struggle.
Typical needs and options
| Need | Option |
|---|---|
| New or second-hand ute, van or trailer | Vehicle or equipment finance |
| Tools and testing gear | Equipment finance or small unsecured loan |
| Materials for a large job | Working capital loan or line of credit |
| Tax bill after a strong year | Unsecured loan or ATO payment plan |
| Bigger expansion | Property-secured loan using home equity |
Common reasons tradies get declined
- New ABN after years as an employee.
- Late tax returns, often because the books are done once a year.
- Income through a personal account as a sole trader.
- Small defaults from old phone or utility accounts.
Each of these has a workaround. The pages on sole trader loans and business loans without up-to-date tax returns explain them.
Make it easier
Run all trade income through one business account, lodge BAS on time if you are registered for GST, keep invoices and quotes organised, and note your licences and years of experience. These details help a person-led lender see the business behind the paperwork.
When home equity makes sense
For larger needs, such as taking on staff, buying a second vehicle and covering a big job’s materials at once, a second mortgage or caveat over your home, from $20k up to $5m, can provide more than unsecured lenders will offer. Interest can be prepaid, or rolled into the loan so the business is not hit with an extra monthly payment while it grows.
An illustrative example
A licensed electrician went out on his own after twelve years with a large contractor. Eight months in, he won a commercial fit-out that needed a second van and more stock. Equipment finance funded the van, and a small unsecured facility sized on his strong deposits covered materials until the first progress payment.
Get your trade business funded
Send a 60-second enquiry and tell us your trade, your time on your ABN and what you need. No credit check is run for enquiries, a specialist reads it, and there is no lender auction. Find the right funding.
Frequently asked questions
Can I get a loan if I have only been on my own for a few months?
Options are narrower, but equipment finance, a guarantor or property security can help. Years of experience as an employee also count with person-led lenders.
Can I finance a used ute or van?
Yes, through equipment or vehicle finance, subject to the vehicle's age and condition.
Can I get a loan to pay my tax bill?
Yes. Tax bills after a strong year are a common reason tradies borrow.
I get paid by builders on long terms. What helps?
A line of credit or working capital loan sized to the gap, or invoice finance if your clients are reliable.
Prefer to start now? Enquire here
About 60 seconds. No credit check when you first enquire, and a person who handles unusual deals calls you back.