Chattel mortgage · Tradies
Chattel mortgage for tradies
Tradies and contractors need finance that lands before the job and is repaid as progress claims and invoices clear. Utes, tools and cash-flow gaps between jobs are the usual triggers.
How a chattel mortgage works for tradies
For tradies a chattel mortgage is the default structure for a new or used ute: you own it from day one, claim the GST upfront if registered, and a balloon keeps the monthly repayment in line with what the vehicle earns.
The cash-flow pattern we plan around
A builder or subcontractor may wait 30–60 days for a progress claim while paying materials and wages weekly.
What tradies typically fund
- Ute or van
- Tools and equipment
- Cash flow between progress claims
- ATO and super catch-ups
Chattel mortgage for tradies: 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 tradies usually need | ABN and licence · 6 months of bank statements · Supplier quote for any asset |
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
Business finance for tradies
Business finance for tradies covers vehicle and equipment loans plus short-term working-capital products sized to irregular, invoice-driven income.
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.
Questions from tradies
Are low-doc options available?
Yes, some lenders offer low-doc pathways. Low-doc does not mean no documents or automatic approval. The information required depends on your business, the amount and the lender. Your broker will explain what is needed.
What documents will you need?
We start with a conversation about your business. To assess your options, lenders commonly need identification and recent business bank statements. Depending on the loan, they may also request BAS, financials or statements for existing debts. Your broker gives you a clear list for your situation.