Business vehicle finance · Plumbing businesses
Business vehicle finance for plumbing businesses
Plumbing finance is asset and cash-flow lending for plumbing contractors, funding fitted-out service vehicles, jetters and camera equipment, and the materials and wages carried between invoicing and payment.
How a business vehicle finance works for plumbing businesses
A plumber’s van is a workshop, not a vehicle. Racking, shelving, a compartment for the jetter, water tanks, ladder racks and secure tool storage often add fifteen or twenty thousand dollars to the purchase, and that fit-out can be financed as part of the same asset rather than paid from cash. Terms of four to five years with a balloon keep the monthly cost in line with what the van earns. Send the fit-out quote alongside the vehicle quote and we structure it as one facility.
The cash-flow pattern we plan around
Fast payment on domestic service work alongside 30–45 day progress claims on construction jobs, with trade account materials due on 30-day terms regardless.
What plumbing businesses typically fund
- Fitted-out service vans and utes
- Jetters, drain cameras and locators
- Pipe relining equipment
- Materials and trade accounts between invoices
- Apprentice wages and licensing costs
Business vehicle finance for plumbing businesses: 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 plumbing businesses usually need | ABN and plumbing licence details · 6 months of business bank statements · Quote for the vehicle, fit-out or equipment |
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
Plumbing equipment finance
Plumbing equipment finance is secured lending for the tools of the trade — jetters, CCTV drain cameras, relining rigs and vehicle fit-outs — usually written over two to five years against the equipment.
Trade account gap
The trade account gap is the period between a plumbing supplier’s 30-day account falling due and the client paying the invoice for the job those materials were used on.
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.