Equipment Finance for Tradies in South-East Melbourne

What Counts as Equipment Finance?

Equipment finance covers a broad range of assets used in a trade or business. For tradespeople in Pakenham, Berwick, Officer, Narre Warren and across the Casey-Cardinia corridor, commonly financed assets include:

• Utes, vans and light commercial vehicles
• Trailers, enclosed trailers and flat-top trailers
• Power tools, nail guns and site equipment
• Compressors, generators and pressure washers
• Scaffolding and access equipment
• Excavators, bobcats and compact earthmoving plant
• Workshop lifts, hoists and diagnostic equipment
• Laser levels, concrete saws and specialist trade tools

Both new and used equipment can be financed. Most lenders accept private sales as well as dealer purchases, with some restrictions on very old or high-kilometre vehicles.

How Equipment Finance Works for Tradies

The most common structure for tradies is a chattel mortgage. You own the asset from settlement, the lender holds a registered security interest, and you repay over an agreed term (typically 2 to 5 years) with fixed monthly repayments. An optional balloon payment at the end keeps repayments lower during the term.

Tax treatment for businesses:

• GST on the purchase price can be claimed upfront on your next BAS (for businesses on cash-basis GST)
• Interest on the loan is deductible as a business expense
• The asset is depreciated over its effective life (or potentially written off in full under temporary full expensing provisions, subject to your tax position)

Speak with your accountant about the specific tax treatment for your structure, particularly around the instant asset write-off thresholds which change from year to year.

What Lenders Look For

For standard equipment finance applications, lenders typically want to see:

• ABN registered for 2+ years (some lenders require less)
• Last 2 years' individual and business tax returns (for full-doc applications)
• Last 3 to 6 months' business bank statements
• BAS lodgements up to date
• Details of the asset: make, model, year, purchase price and seller

A clear credit history helps, but specialist equipment lenders can work with minor defaults or impaired credit depending on the circumstances.

Newer Tradies and Low-Doc Options

If your ABN is under 2 years old, do not assume you cannot get equipment finance. Several non-bank lenders in our panel offer low-doc or alt-doc products specifically designed for newer businesses.

These products typically assess your application based on:

• 6 months of business bank statements showing consistent income
• A signed declaration of business income
• The type of asset (lower risk assets like utes and trailers are easier to approve)

Rates on low-doc products are higher than full-doc, but they give newer tradies access to the equipment they need to build their business without waiting two years for full financials.

Tips for Getting Approved

• Have 6 months of recent bank statements ready. Lenders want to see consistent turnover, not just a good last month.
• Make sure your BAS is lodged. Overdue BAS is one of the fastest ways to get declined.
• A deposit or trade-in helps. Even 10 to 20% reduces the LVR and improves your approval chances, particularly for used assets.
• Know the asset details before you apply. Year, make, model, odometer (for vehicles) and purchase price.
• Ask about balloon payments. A balloon of 20 to 30% keeps repayments manageable and frees up cash flow during the term.

Local Knowledge, National Lenders

We are based in Pakenham and work with tradespeople across Melbourne's south-east growth corridor every week. We know the industries active in this area, the types of equipment being financed, and the lenders who understand the trade sector. Our panel includes mainstream banks and specialist equipment lenders, giving you options regardless of how long your ABN has been active.