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Tradie Finance
Compare a range of business loans from Australia’s most reputable lenders to find your tradie finance deal with Savvy.
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The features and benefits of tradie finance
Borrow up to $500,000
You’re able to access quick business loans of up to $500,000, so you won’t have to worry about providing any valuable assets to act as security for your finance agreement.
Diverse finance types
Whether you’re seeking out an unsecured business loan to distribute across several areas or finance specific equipment with a secured loan, you can find an option for you with Savvy.
Repay at your own speed
You can set your own repayment term to suit your business’ income needs, with instalment periods ranging from as little as three months all the way up to seven years depending on your business loan type.
Access competitive rates
With a wealth of lenders on the market vying for customers, you can take advantage of their competition and secure a loan starting from an affordable interest rate.
Pay ahead of schedule
Many business financiers can allow you to contribute additional repayments towards your loan, which can help you save hundreds, if not thousands, and shorten your term in the process.
Funding available in as little as 24 hours
Perhaps the most attractive feature of tradie finance to borrowers is the speed at which it can be processed, with same-day approvals and 24-hour funding possible.
Types of business loan
The most common type of business finance, unsecured loans enable businesses to access the funds they need without attaching an asset to the loan as security. Some lenders may allow you to borrow up to $500,000 and, because there's no collateral, offer same-day approval.
If your business already owns valuable assets, such as property or expensive equipment, you may choose a secured business loan instead. These loans may increase your borrowing power beyond what an unsecured loan can offer and, crucially, typically come with lower interest rates.
Business loans don't always have to be worth hundreds of thousands. If you're operating a small business and need a boost to help you keep on top of your expenses or expand your company, you may be able to take out a loan starting from as little as $5,000 and unlock further capital.
Just because you don't have all the required documents for a standard business loan doesn't mean you're out of options. Low doc finance enables you to use alternative documentation, such as other business financials, in the application process to access the funds you need.
A commercial line of credit allows you to draw from your loan account whenever your business needs access to their funds, instead of managing a lump sum and repaying it like a regular loan. This can add flexibility to your finance arrangement, providing money when you need it.
Invoice finance presents another option to business operators looking to free up cash through outstanding invoices yet to be paid by their customers. Your invoice finance can either be invoice discounting or factoring, which present different options when it comes to your invoices.
A common reason for seeking out a loan is to purchase commercial equipment. You can do this either with an unsecured arrangement or one with the equipment itself as collateral, with the latter potentially increasing your borrowing power and lowering your interest rate.
With this finance, when your business purchases product, your supplier provides an invoice which you send to your financier and pledge to repay by a set date. From there, your supplier sells the invoice to your financier at a discounted rate, while you repay the full amount to your financier.
Under an inventory finance agreement, your lender pays your supplier directly for inventory, which allows it to be signed off and sent to you. From there, you can pay off your debt within a pre-determined period to your lender, which may be longer than the regular debtor period.
An overdraft facility is attached to an existing financial account belonging to your business, such as a transaction or savings account, and enables you to borrow up to a set limit after the account’s balance reaches zero. These overdrafts are repaid with interest, but only on what you use.
You may simply be in a position where your business needs a boost to its cash flow. If this is the case, there’s a range of stop-gap solutions which may be suitable for your situation, from standard unsecured loans to specialist cash flow loans, invoice finance or even an overdraft.
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How to compare different business loans for tradies
Eligibility criteria
The most important part of an Australian business loan application process is to ensure you’re eligible for financing. There’s little point in applying without knowing whether you qualify, as this could lead to an entirely avoidable rejection. The main points you’ll need to meet are that you must:
- Have no history of bankruptcy
- Have been trading for at least six months
- Be generating at least $5,000 in monthly turnover
Interest and fees
Interest and fees form the basis for the cost of your loan. Even small differences between interest rates can save you hundreds over a relatively short time span. However, fees are a relevant consideration also, as origination costs of up to 3% of your loan sum can set you back a considerable amount overall.
Fortunately, Savvy lays out all of our lenders’ interest rates and costs, including comparison rates, to paint a more detailed picture of your loan cost.
How flexible your repayments are
You should prioritise the ability to submit extra repayments, as you never know when your business’ situation might change and put you in a position to pay down your loan ahead of schedule. As mentioned, doing this can slash the amount of interest you pay by shortening your loan term, which is done by more sharply reducing the principal amount on which your interest calculation is based.
Early repayments on equipment finance will almost always result in a fee, however, so repayment flexibility won’t be as great a priority for this finance type.
How much you can borrow
Of course, you should ensure your chosen lender offers the loan amount you’re looking for and is willing to lend it to you. Borrowing ranges differ between lenders, with some offering higher maximums and others lower minimums. If you’re looking to borrow at the higher or lower end of the scale, it’s particularly relevant for you to consider this, as it’s more likely to affect you.
Don’t settle for more or less than you need: choose a lender who meets your requirements.
Available terms
Additionally, always look for lenders who offer the term you need to repay your loan. It’s crucial you’re consistently comfortable when repaying your tradie loan, as you shouldn’t ever run the risk of not being able to support it. If your unsecured business lender’s maximum available loan term is one year, but you’d prefer to pay your loan back in instalments over two years, you should keep looking until you find a suitable lender who offers the term you need.
Frequently asked questions about tradie finance
There are still options available to hopeful borrowers who don’t have all of the documents required to take out a small business loan, such as tax returns, in the form of low doc business loans. These come with lesser documentation requirements, enabling business owners to access the funding they need, albeit at lower borrowing caps and higher interest rates. Once you gather all the required documents, though, you can apply for a standard sole trader loan.
Your borrowing power will be determined by a variety of individual variables, most notably your business’ turnover and available cash after expenses. However, the stability of revenue, time trading and your business credit score will all factor into your lender’s thinking when determining your borrowing power. For an estimate of what different business loans might cost you each instalment and overall, you can use Savvy's business loan repayment calculator.
Yes – opting for a loan with a guarantor (or getting yourself or another company director to provide a personal guarantee) can help your chances of approval and potentially increase your borrowing power and lower your interest rate. This all comes down to the level of risk your lender feels in approving your loan, with guarantors and guarantees reducing that risk.
Because the application process is 100% online for unsecured business finance through our partners, you can apply at whatever time suits you. Application portals are open 24/7, giving you the opportunity to send it directly through to your lender at any time of day or night. Alternatively, if you’re seeking out a secured equipment finance deal, you can apply directly with Savvy and one of our friendly consultants will help you lock in the loan you’re looking for within 48 hours.
A line of credit is another type of business finance whereby borrowers are approved to withdraw funds up to a certain limit whenever they need. They’re favoured by many business owners, as they provide a more flexible source of funding rather than a single lump sum. However, interest rates are generally higher on these loans.
Yes – the interest charged on your unsecured tradie finance deal is able to be claimed as a tax deduction, which can reduce the cost of financing considerably. It’s important to note, though, that you can only claim interest on tax; the principal portion of your repayments (the contribution to your loan amount) isn’t tax-deductible. If you’re looking to claim the interest on your loan, you should always keep detailed records of your loan payments. If you’re leasing equipment, up to 100% of your repayment can be claimed on tax.
Yes – if you run a business trading in Melbourne and need a loan, you can apply to an online lender and get approved. Just because your lender may be based in Perth, for instance, doesn’t mean you’ll have to apply for a Perth business loan as a result.
Helpful business loan guides
Still looking for the right finance for your business?
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