Top Loans for Tradies
Are you looking for more funds to buy new tools and equipment, upgrade your mode of transport or increase the working capital of your tradie business? You don’t have to dip into your savings to pay for business expenses. In fact, it’s not advisable because you’re going to need a lot of capital if you want your business to succeed. The smart alternative to pay for your business essentials without touching your savings is to get lender financing.
At Positive Lending Solutions, we offer a variety of loans for tradies, including:
This type of business financing is used to purchase tradie tools and equipment. Unlike traditional bank loans, you don’t have to pay a down payment to secure an equipment loan. However, if you cannot repay the debt within the agreed period of time, the lender may repossess the equipment and sell it to satisfy the loan obligation.
Several benefits of equipment loan include:
- Easy to obtain and qualify for - Requires less documentation than many other forms of financing, usually by just personal credit score requirements
- Fast funding - You can typically get funded under one week.
- Drives competitive advantage and generates more revenue - New and upgraded equipment increases your work productivity, which translates to overall competitiveness and higher profit
- Allows ownership of the equipment from the start of the loan
- Provides tax incentive - For most equipment loan terms, the interest paid on the payments can be written off as a tax-deductible
- Easy repayment schemes - Interest rates typically fall between 6-9% with a repayment term of 1 to 10 years, depending on the size of the purchase and shelf life of the equipment
Car loans are financing options strictly to purchase a vehicle. These plans can be:
- Standard Loan - The car serves as collateral for the loan. If you default on your repayment, the lender can seize the vehicle and sell it to recoup the outstanding balance.
- Chattel Mortgage - The lender gives you the money to buy the car, which you’ll take ownership at the time of purchase. However, the lender takes a mortgage over the vehicle as security for the loan. You may finance the total purchase price of the car, make an up-front deposit or use a trade-in. Once you finish paying the loan, the lender will pass the title of the vehicle over to you.
- Novated Lease - If you’re a tradie employed by a contractor, this three-way arrangement may work best for you. Your employer leases the car directly from a financier, which gets paid through a novated deed on your wage. Typically, your employer takes the payment from your pre-tax salary, reducing your taxable income. However, you will cover all the operating costs of the vehicle, like the registration, insurance and servicing.
- Commercial Hire Purchase - The financier buys the car and then hires it to you for an agreed period of repayment. You can use the vehicle during this period, but you are not the owner. The car is only transferred to you once the repayment is complete.
- Operating Lease - The financier buys the vehicle and rents it to you. At the end of the term, you have the option to continue renting the car, buy it, or change to another car.
- Finance Lease - The financier buys the car and then leases it to you. You will pay the fixed, monthly rental payments and are responsible for the maintenance and trade-in residual risk of the car. At the end of the lease period, you have the option to refinance, return, sell or buy the car for the residual amount.
A truck loan is a type of commercial vehicle financing that allows you to buy a truck for any business. It enables you to purchase an extensive range of heavy vehicles including prime movers, car carriers, tipper trucks, tilt-tray trucks, refrigerated trucks, and many others.
The structure of a commercial truck loan is similar to a car loan in which you own the truck outright once you pay off the loan. Generally, a truck loan can be:
- Chattel Mortgage - You own the truck from the moment you buy it
- Hire Purchase - Rent the truck from a financier under an agreed payment term
If you need a truck loan but have a bad credit history, you can take advantage of Bad Credit Truck Finance. This program helps you get the truck you need despite credit issues, as well as repairs your credit history and increases your chances for future loans.
Positive Lending Solutions has a team of bad credit truck loan experts who can source the best bad credit truck loan on the market for you. They provide free consultation for tradies across all of Australia via 1300 722 210.
Small Business Loan
A small business loan can be used for various business purposes, including the buying of equipment and paying business expenses. It is designed to help your business’ cash flow.
Dealing with cash flow issues is challenging when you are just starting out in the tradie business. With so many expenses to settle and not enough clients to pay for your services, money goes out fast. To keep your business running and avoid bankruptcy and fatal closure, you need a temporary source of cash.
A small business loan will provide you with funds to support your business initiatives.
A small business loan can be obtained in two forms:
- Secured Loan - An asset, like a car or a property, is pledged as collateral for the loan.
- Unsecured Loan - No collateral is needed for the loan. Since the risk is higher for the lender, it typically comes with a lower loanable amount and a higher interest rate. Some lenders may also require a personal guarantee.
Whichever loan plan you choose, don’t forget to seek professional advice from a loan specialist who can answer all your questions regarding lender financing. They can recommend the best loan for you and the ones that give you the best rates, interest and loan term.
Talk to one of our expert loan specialists today on 1300 722 210 or fill out our Quick Quote.