Chattel mortgage · Electrical contractors
Chattel mortgage for electrical contractors
Electrical contractor finance funds fitted-out vehicles, test and installation equipment and elevated work platforms, plus the working capital needed to carry cable and switchgear costs on commercial and solar projects.
How a chattel mortgage works for electrical contractors
For a GST-registered electrical business, a chattel mortgage over a van, ute or elevated work platform means ownership from day one and a GST claim on the purchase price in the following BAS. Interest and depreciation are deductible to the extent of business use. Where a contractor does regular high-bay or warehouse work, comparing a scissor lift repayment against a year of hire invoices is a worthwhile exercise — owning frequently wins, and the chattel mortgage keeps the asset on your balance sheet.
The cash-flow pattern we plan around
Large materials outlays at the start of each project against progress claims paid 30–45 days in arrears, with retention held to practical completion.
What electrical contractors typically fund
- Fitted-out service vans and utes
- Test, certification and thermal imaging equipment
- Scissor lifts and elevated work platforms
- Cable, switchgear and solar componentry up front
- Apprentice wages and licensing
Chattel mortgage for electrical contractors: the numbers
| Typical amounts | $10,000 – $2,000,000 |
|---|---|
| Term | 12–84 months |
| Indicative rates | 6.9% – 14.5% p.a. |
| Repayments | Monthly (weekly or fortnightly available) |
| Speed | 24–48 hours for low-doc up to $150k; longer for full-doc |
| Documents electrical contractors usually need | ABN and electrical contractor licence · 6–12 months of bank statements · Equipment or vehicle quote, or materials purchase order |
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
Electrical contractor finance
Electrical contractor finance is lending to licensed electrical businesses covering vehicles, test and access equipment, and working capital for the materials purchased ahead of progress payments.
Materials-up-front exposure
Materials-up-front exposure is the cash a contractor commits to cable, switchgear and componentry at the start of a project, before any part of that project has been claimed or paid.
What is a chattel mortgage?
A chattel mortgage is a business loan used to buy a movable asset (a chattel) such as a ute, truck, excavator or equipment. The business takes ownership immediately and the lender registers a security interest over the asset until it is paid off.
Chattel mortgage balloon payment
A balloon is a lump sum, typically 0–40% of the purchase price, paid at the end of the term. It lowers regular repayments but must be paid, refinanced or covered by selling the asset when the term ends.