Asset finance for tradies is borrowing to buy the gear your business runs on, such as a ute, van, trailer, tools or a small excavator, and repaying it over an agreed term. In most cases the asset itself is the lender’s security. The three structures tradies compare most often are a chattel mortgage, a lease and a personal car loan.
Which one fits depends on how the asset is used, whether you are registered for GST and how your business is set up. Lenders will look at your ABN and GST history, your income evidence, your deposit and the asset’s age and value. Because the GST and tax outcomes differ between structures, your accountant should be part of the decision before you sign.
What do tradies commonly finance?
Most tradie purchases fall into a few groups:
- Work vehicles: utes, single and dual cab trays, vans and light trucks
- Trailers: tool trailers, box trailers, plant trailers and car carriers
- Tools and kit: power tool sets, compressors, generators, welders and test equipment
- Plant: mini excavators, skid steers, rollers and concrete equipment
- Fit-outs: van shelving, canopies, toolboxes and racking, sometimes bundled with the vehicle
Lenders generally find vehicles and well-known plant easier to assess than specialised or second-hand tools, because the resale market is clearer. If you are buying larger machinery, our equipment finance guide for Sydney goes deeper on structure and cash-flow fit. If you are stepping up to a heavy vehicle, see our truck finance guide.
Should you use a chattel mortgage, lease or personal car loan?
Here is a general comparison. The GST and tax treatment differs for each and depends on your circumstances, so confirm it with your accountant.
| Option | Who borrows | Ownership | How the lender assesses you | Worth checking |
|---|---|---|---|---|
| Chattel mortgage | Your business or you as a sole trader, using your ABN | You own the asset from settlement; the lender holds security | Trading history, ABN and GST registration, business income, credit history | GST and depreciation treatment, balloon size, fees |
| Finance lease | Your business | The financier owns the asset during the lease | Similar to a chattel mortgage | Residual value and end-of-term options |
| Personal car loan | You as an individual | You own the vehicle; a secured loan has the vehicle as security | Personal income, expenses and credit history under consumer lending rules | Whether the vehicle is mainly for work or private use, and the tax impact |
A chattel mortgage is the most common business option for a work ute or van. A personal car loan can make sense if the vehicle will mainly be used privately or if your business income is hard to document, but it is assessed as consumer credit and the tax outcome is different. Moneysmart’s car loan guide explains how to compare secured car loans, fees and total cost (Moneysmart).
Can you get asset finance with a new ABN?
Often yes, but you will usually have fewer lender options. Many lenders prefer an ABN that has been active for a period of time, along with GST registration, before they offer their standard business products. The exact minimum varies by lender.
If your ABN is new, some lenders may still consider an application where you can show:
- prior experience in the same trade, for example as an employee before going out on your own
- a deposit or trade-in
- property ownership or other assets
- a clean credit history
- work already lined up or regular clients
Registration for GST is required once your GST turnover reaches $75,000 or more, according to business.gov.au (checked 3 October 2026) (business.gov.au). Your GST registration date is one of the first things a lender checks, so have it ready.
What does low-doc asset finance mean for tradies?
Low-doc asset finance is a general term for lender products that accept less paperwork than a full financial assessment. Instead of two years of tax returns and financial statements, a lender may rely on items such as recent BAS (ATO), business bank statements or a declaration from your accountant.
These options are usually aimed at established ABN holders and may come with tighter limits, a higher rate or a deposit requirement. They are useful when your tax returns are behind or don’t yet reflect current trading, but compare the total cost against a full-doc application. For the paperwork side of vehicle finance, see self-employed car loans: what paperwork do you actually need?.
Is a balloon payment worth it on a ute or van?
A balloon is a lump sum due at the end of the term. It lowers your regular repayments but doesn’t reduce what you owe.
Possible advantages:
- lower repayments while the business is building
- more cash on hand for materials, fuel and wages
- can line up with a plan to trade the vehicle in at the end of the term
Possible downsides:
- more total interest, because you carry a larger balance for longer
- a lump sum to pay, refinance or cover by selling at the end
- if the vehicle is worth less than the balloon after years of hard work, you may need to make up the gap
Compare repayments and total cost with and without a balloon, and only choose one if you have a realistic exit plan.
Does the instant asset write-off apply to tradie purchases?
It can apply to some purchases, but there is a firm threshold. The ATO’s instant asset write-off lets eligible small businesses with aggregated turnover under $10 million, using simplified depreciation, immediately deduct assets that cost less than $20,000, for assets first used or installed ready for use on or after 1 July 2023 (ATO page last updated 28 August 2026) (ATO).
Assets costing $20,000 or more go into the small business pool instead. Some tools, trailers and smaller equipment may fall under the threshold, while many utes and vans will not. Finance and tax are separate decisions, so don’t choose a purchase or loan structure because of an assumed deduction. Ask your accountant first.
What documents do tradies need for asset finance?
Requirements vary by lender and loan size, but this checklist covers most applications:
- Driver licence and ABN details
- GST registration date and recent BAS
- Recent business bank statements
- Recent tax returns and notices of assessment, or financial statements, for full-doc applications
- A dealer invoice, supplier quote or private sale details for the asset
- Details of existing loans, leases and credit cards
- Deposit or trade-in details, if any
How do you apply for asset finance as a tradie?
- Decide what you actually need. New or used, the specification, and whether to bundle a fit-out or trailer.
- Talk to your accountant. Ask which structure suits your tax and GST position.
- Set a repayment you can carry. Allow for quiet months, insurance, rego and servicing.
- Gather your documents. Use the checklist above before you commit to a dealer.
- Compare lenders and structures. Look at rate, fees, balloon, term and lender policy for your ABN age.
- Get approval before you sign. Avoid committing to a purchase you can’t yet fund. Finance is subject to lender approval.
What mistakes should tradies avoid?
- Taking dealer finance without comparing. It can be convenient, but compare the total cost and terms.
- Picking the structure your mate used. Your GST status, business setup and vehicle use may be different.
- Stretching the term to cut repayments. The ute may need replacing before the loan is paid off.
- Assuming the write-off applies. The $20,000 per asset threshold rules out many vehicles.
- Leaving BAS and tax lodgements behind. Gaps in lodgements can limit your lender options.
When you are ready to compare options, the asset finance page explains how we help tradies, or you can start an enquiry.