Business vehicle finance · Construction
Business vehicle finance for construction
Construction finance is business lending structured around progress claims, retentions and plant purchases, covering equipment loans for machinery and working capital for the gap between paying subbies and being paid.
How a business vehicle finance works for construction
Site utes, crew vans and supervisor vehicles are financed separately from plant, usually over four to five years with a balloon. Construction vehicles cover high kilometres and get treated roughly, so a balloon set too high can leave you owing more than the vehicle is worth at changeover. We set the balloon against realistic trade values for a dual-cab that has lived on a site, not against showroom condition. Fleets of three or more can often be written under one facility with a single credit assessment.
The cash-flow pattern we plan around
Milestone claims certified and paid 30–60 days in arrears, with 5% retention held until practical completion and the end of defects liability.
What construction typically fund
- Excavators, telehandlers and site plant
- Utes and site vehicles
- Wages and materials between progress claims
- Retentions tied up until practical completion
- Bonding and insurance premiums
Business vehicle finance for construction: the numbers
| Typical amounts | $10,000 – $250,000 |
|---|---|
| Term | 12–84 months |
| Indicative rates | 6.8% – 15% p.a. |
| Repayments | Monthly, with weekly and fortnightly available |
| Speed | Same day to 48 hours for low-doc |
| Documents construction usually need | ABN, GST registration and builder licence · 6–12 months of business bank statements · Contract or supplier quote for the plant being financed |
Rates shown are indicative ranges observed across our lender panel for the period stated. They are not an offer or quote. Your rate depends on your business, the lender, the amount, the term and the security offered. The lender makes the final credit decision.
Key terms
Construction equipment finance
Construction equipment finance is secured lending used to buy excavators, loaders, telehandlers and other plant, where the machine itself is the security and the term is typically 3–7 years with an optional balloon.
Progress-claim cash flow
Progress-claim cash flow is the gap between paying wages, subcontractors and suppliers on a construction job and receiving certified payment for that stage of work, commonly 30–60 days plus retention.
What is business vehicle finance?
Business vehicle finance is a loan or lease used to acquire a car, ute or van for business purposes, secured by the vehicle. The most common Australian structure is a chattel mortgage, where the business owns the vehicle from purchase.
What is a balloon payment on a car loan?
A balloon is a lump sum, typically 20–40% of the purchase price, due at the end of the finance term. It reduces regular repayments but must be paid, refinanced or covered by selling the vehicle when the term ends.
Can you claim GST on a business vehicle?
A GST-registered business buying a vehicle under a chattel mortgage can generally claim the GST credit on the purchase price in its next BAS, subject to business-use percentage and the car limit. Confirm the position with your accountant.
What is the car limit?
The car limit is the maximum cost on which depreciation can be claimed for a passenger vehicle, indexed each year by the ATO. Vehicles designed to carry one tonne or more, or nine or more passengers, are generally excluded from the limit.