Finance for tradies: utes, tools, materials and the next apprentice

Trade businesses grow in very physical ways. Another ute. A bigger trailer. A mini excavator instead of hiring one every week. An apprentice who can run the second job. A stock of materials for the big commercial contract. And all the while, builders and clients pay on their own timetable, not yours. Finance for tradies needs to cover both the gear and the gaps.

What do tradies typically fund?

Milestone	Usual approach
Ute, van, trailer	Vehicle finance
Tools and plant	Equipment finance
Materials for a big job	Line of credit or short-term loan
Waiting on builders to pay	Invoice finance or line of credit
Apprentice or extra crew	Working capital, line of credit
Workshop or yard	Unsecured or property-secured loan
ATO catch-up after a big year	See ATO and BAS bills

Vehicles and plant: let the asset carry it

Most tradies’ biggest purchases are vehicles and plant. These suit vehicle and equipment finance because they hold value and can be identified. The lender pays the dealer or seller, registers an interest and you repay over a term that matches the asset’s working life.

For used gear — very common in trades — expect a few extra checks: condition, age or hours, and a PPSR search to make sure there’s no finance still owing. Including racking, canopies, toolboxes and signage on the dealer or fitter’s invoice can roll the whole package into one facility. The ATO notes that commercial vehicles not designed mainly to carry passengers aren’t subject to the car limit cap on GST credits.

Getting paid: the cash flow gap in trade work

You buy materials, pay your team weekly, finish the stage and invoice — then wait. Builders may pay in 30, 45 or more days, and retentions can hold back part of the payment for months. That gap is one of the biggest pressures in trade businesses.

Ways to manage it:

• A line of credit drawn for materials and wages, repaid as progress payments land
• Invoice finance for business customers, where invoices and contracts allow it
• Clearer payment terms — business.gov.au’s guidance on payment terms covers setting expectations upfront and dealing with late payments
• Deposits and progress claims written into quotes for bigger jobs

Got work booked but cash tight until you’re paid? Tell us about it — enquiring doesn’t involve a credit check, and a specialist will suggest a way to bridge the gap.

Taking on an apprentice or a second crew

The jump from owner-operator to employer is a big one. Business.gov.au’s guide to hiring employees lists the essentials: register for PAYG withholding before your first pay run, report through Single Touch Payroll, hold workers compensation insurance, give the Fair Work Information Statement and provide a super choice form within 28 days. Super is 12% from 1 July 2025, and from 1 July 2026 it’s paid each payday under Payday Super.

Often the second crew needs a second vehicle and set of tools too. Fund the vehicle and tools with vehicle and equipment finance, and the wages gap with a short-term facility. See funding new hires.

Illustrative example: A plumbing business with one van keeps turning away maintenance work. The owner finances a second used van with racking through a dealer, hires a second-year apprentice, and opens a small line of credit to cover wages and materials while the extra work’s invoices are paid. Within a few months the second van’s jobs are covering its costs.

What lenders like to see from tradies

• Business bank statements showing regular income
• Booked work — accepted quotes, contracts, a steady maintenance base
• Licences and insurances current for your trade
• BAS lodgements up to date
• How customers pay — reliable builders and repeat clients help

Big jobs and contracts

Winning a larger commercial contract can transform a trade business — and stretch it. Materials, extra labour and longer payment cycles all hit at once. Talk to us before you sign so the funding is ready when the work starts, not halfway through.

Questions to ask before you buy that next piece of plant

• How many days a month will it actually work, compared with hiring one when needed?
• Does it let you quote for jobs you currently turn down?
• Who will operate it, and do they hold the right tickets?
• What will servicing, insurance, registration and storage cost each year?
• How long until the extra work covers the repayments?

If hiring works out cheaper for the work you have now, wait. If you’re hiring the same machine most weeks, owning it through equipment finance often makes more sense — and the repayments become a predictable cost you can build into your quotes. A quick comparison of a year’s hire invoices against estimated repayments usually settles the question.

Get your trade business moving

Tell us what trade you’re in, what you need to buy or bridge, and how work is looking. A real person will match the finance to your gear and your payment cycle. There’s no credit check when you enquire, your details aren’t sold on or sent to a heap of lenders, and accurate answers about your work pipeline help us find the right option on the first call. See what your trade business qualifies for.