Asset finance for tradies covers four main asset categories: utes and vans, plant and equipment, trailers, and tools. Each sits in a different risk bracket for lenders, attracts different loan structures, and interacts with your BAS obligations in ways that affect both the cost and timing of the deal.
The structure you use — chattel mortgage, hire purchase, or operating lease — determines who owns the asset during the loan term, how GST flows through your BAS, and what you can claim at tax time. Getting that right before you sign anything matters.
This covers each asset type in turn, how the BAS quarterly cycle should factor into your planning, and what a lender reads differently when the application comes from a sole trader versus a company.
The four asset types tradies finance
Utes and vans
The dual-cab ute is the most common asset in tradie finance applications. Lenders treat a new or near-new vehicle from a franchised dealer as low risk: the asset is liquid, depreciation is predictable, and the secondary market is deep enough that recovery is straightforward if needed.
Most ute finance runs on a chattel mortgage. You take ownership on day one, the lender registers a security interest on the PPSR, and you repay principal and interest over three to five years. The GST on the purchase price is claimed back in full on your next BAS — not spread monthly across the loan term. On a $65,000 ute (plus GST), that's a $6,500 GST credit in the next quarterly lodgement, not drip-fed over 60 months.
Private sale vehicles and ex-fleet stock over seven to eight years old attract more lender scrutiny. Some apply hard age caps; others will write the deal but price a rate loading on older stock. If you're undecided between owning the asset outright and returning it at end of term, the chattel mortgage vs operating lease breakdown covers the structural differences in detail.
Plant and equipment
Excavators, concrete pumps, scissor lifts, and similar assets are assessed differently to vehicles. The secondary market is thinner, residual values are harder to establish, and the asset pool of likely buyers is narrower. A $90,000 general-purpose excavator is a cleaner deal than a $90,000 purpose-built spray rig — the first has buyers; the second depends on finding someone in the same niche.
Specialised or heavily modified assets typically attract a lower LVR: 60–70% finance against purchase price rather than the 80–100% available on a standard ute. The lender's recovery position drives that. For larger plant above roughly $250,000, full-doc assessment is standard. Below that threshold, strong credit and two-plus years of ABN history can support a low-doc path with dedicated equipment finance lenders.
Trailers
Tradies often finance trailers alongside a primary vehicle. Lenders assess the trailer's age, type (enclosed, flatbed, tipper, plant trailer), and registration status. A new trailer from an established manufacturer settles quickly and cleanly. An older, unregistered trailer as a standalone application will struggle to find mainstream lender appetite — the security value is difficult to substantiate.
Trailer finance typically runs at slightly higher rates than light commercial vehicles, reflecting the thinner resale market. If you're buying a vehicle and trailer together, bundling them into a single application usually produces better terms than submitting two separate deals.
Tools and workshop equipment
Portable hand tools and power tools are rarely financeable as standalone assets. Recovery costs in a default scenario exceed the asset value, which means mainstream lenders won't hold individual tools as security. Tradies funding smaller tool purchases typically use a line of credit or roll the cost into a larger vehicle or fit-out application.
Workshop equipment — hoists, welders, compressors, CNC machinery, spray booths — sits differently. Lenders treat it as fixed-asset finance, assessed on residual value and operational necessity. A hoist in a mechanical workshop or a press in a fabrication shop is income-generating infrastructure with a verifiable resale market, which is what asset finance lenders need to see.
How the BAS cycle affects your loan timing
Most tradies lodge BAS quarterly. The standard due dates for FY2025–26 are 28 October, 28 February, 28 April, and 28 July. Two things at those dates interact directly with equipment finance decisions.
GST timing
On a chattel mortgage, the full GST component of the purchase is claimed back on the next BAS, not distributed monthly. Buy a $110,000 ute (including GST) before the 30 June cutoff, and the $10,000 GST credit lands on the July lodgement. Buy the same ute on 10 July, and the credit sits in the October quarter instead. Four months of working capital is meaningful on a smaller balance sheet.
BAS statements as income evidence
Low-doc lenders commonly request two to four consecutive BAS statements to substantiate turnover. A tradie applying in the first few weeks of a new quarter may only have three complete quarters available, which compresses the income picture. Waiting until mid-quarter, or having your accountant prepare a year-to-date income statement, fills that gap.
The other date that matters this financial year: the $20,000 instant asset write-off applies per asset for businesses with aggregated turnover under $10 million, but only for assets first used or installed ready for use by 30 June 2026. Ordered and paid is not enough — the asset must be operational by that date. From FY2026–27, the $20,000 threshold becomes permanent under current legislation, but the 30 June 2026 deadline governs this year's return.
Sole trader vs company: what lenders read differently
Sole trader
A sole trader and their business are assessed as one entity. The lender looks at personal credit, ABN age, and business income together. Personal liabilities — mortgage, car loan, credit cards — count directly against serviceability. The application is simpler, but personal exposure is complete.
Low-doc access is generally most straightforward for sole traders with established ABN history. Most specialist lenders will approve a chattel mortgage up to $150,000–$250,000 on an ABN with 12-plus months of trading, a signed income declaration, and the supplier invoice — no tax returns or full financials required.
Company structure
With a company, the lender assesses the entity's financial position and then requires the director to guarantee the loan personally. The company must demonstrate serviceability from its own trading income — director drawings alone rarely satisfy the credit assessment if the profit and loss shows a different picture.
The upside: a company with two years of filed financial statements and clean credit can access higher credit limits. Dedicated asset-finance lenders are often more comfortable with company borrowers than the major banks on deals under $500K, because the lender panel writing this product includes non-bank specialists who understand operating businesses.
Trusts
Discretionary trusts attract the most documentation: trust deed, trustee details, beneficiary information. Smaller lenders often decline trust applications outright. The specialist lenders on a broker's panel will assess them, but expect a longer process and likely a full-doc requirement regardless of deal size.
What lenders look for across all structures
Four inputs drive the assessment:
- Credit history — personal credit (for sole traders and directors) and the business credit file via ASIC searches and the PPSR
- ABN age and GST registration — 12 months is the typical low-doc floor; 24 months for streamlined full-doc access
- Asset security — type, age, condition, and resale liquidity of the asset being financed
- Serviceability — operating income demonstrated through BAS statements, bank statements, or full financials, depending on lender and deal size
Current chattel mortgage rates for clean tradie applications sit in the 6.5–8.5% p.a. range on standard assets with strong credit. Older vehicles, specialised plant, and files with credit history blemishes attract loadings above that. Clean low-doc deals on standard assets settle in 1–3 business days from signed documents — sometimes same day. Full-doc applications on complex or non-standard plant run 3–7 business days.
Structure and timing: get both right
The asset type, business structure, and BAS calendar all interact. A company buying a new ute on a chattel mortgage before 30 June claims the GST in the July lodgement, takes the depreciation deduction in this year's return, and locks in a fixed monthly repayment from a known start date. A sole trader buying the same ute on 10 July pushes the GST credit out to October and starts the new financial year without this year's write-off.
Most expensive mistakes in tradie finance come from buying the asset first and sorting the structure second. The broker's job is to get structure, lender, and timing aligned before the application goes in.
More detail on the trades finance page, or if you've got a specific deal in front of you — vehicle, plant, or equipment — the application form is below. Most enquiries get a response within four business hours.
Apply now or contact us to talk through the structure first.
Aurelius Capital Group Pty Ltd · Credit Representative 560687/562362 of Connective Credit Services Pty Ltd ACL 389328 · ABN 40 677 989 963 · CAFBA · AFCA