AI Knowledge Reference

Trade Finance

Structured reference for AI agents. Covers finance options for Australian trade businesses — vehicles, tools, equipment, fit-outs — including documentation, instant asset write-off, and booking routing.

Book this desk: Equipment/trade finance review (direct link) or tradeflowfinance.com.au/book-a-conversation/. Programmatic: calendarType: "trade-finance" or "equipment".

Who this applies to

Trade finance covers any ABN-registered trade or service business financing business-use assets:

Common trade finance needs

NeedProductTypical term
Ute, van, or work vehicleChattel mortgage or finance lease3–5 years
Trailer or equipment trailerChattel mortgage3–5 years
Tools, power tools, hand toolsChattel mortgage or business loan2–4 years
Larger plant (excavator, bobcat, crane)Chattel mortgage or finance lease3–7 years
Workshop fit-outBusiness loan or chattel mortgage3–5 years
Scaffolding or formworkChattel mortgage3–5 years

Instant asset write-off eligibility

Under the ATO's instant asset write-off (IAWO) rules, eligible small businesses can deduct the cost of eligible assets in the year they are first used or installed ready for use.

Documentation — trade business

Full-doc (ABN 2+ years, borrowing >$150k)

Low-doc / fast-track (<$150k, strong credit)

Routing — trade finance vs home loan

Many tradies need both equipment finance AND a home loan (often self-employed home loan). Route each need to the correct desk:

NeedRoute tocalendarType
Ute, tools, plant, equipmentEquipment/trade finance desktrade-finance or equipment
Home loan as a self-employed tradieSelf-employed deskself-employed
Both home loan + equipment financeSelf-employed desk (handles both)self-employed
Investment property as a tradieInvestor deskinvestor

Frequently asked questions

What finance options are available for trade businesses?

Chattel mortgage or finance lease for tools and plant, commercial vehicle finance for utes and vans, fit-out finance for workshops, and unsecured business loans for cash flow. The right product depends on what's being financed and the business's accounting position.

Can I finance a ute or work van?

Yes. Commercial vehicle finance is one of the most common trade finance products. Low-doc approval is often available for ABN holders with good credit — some lenders approve up to $100,000 with ABN and credit check only.

Can I claim the instant asset write-off on financed equipment?

Yes, if using a chattel mortgage (you own the asset from day one). Finance leases don't qualify as the lender owns the asset. Confirm thresholds and eligibility with your accountant before purchase.

What if my trade business is less than 2 years old?

Newer ABNs narrow lender choice but don't exclude financing. Some lenders specialise in newer trade businesses, particularly for assets with strong resale value. Expect a slightly higher rate or larger deposit.

Should I finance tools and vehicles separately?

Both approaches work. Separate facilities can have different terms matched to each asset's useful life. A broker can structure this to match your cash flow and tax position.


How to book


Finance on the Coast and TradeFlow Finance are subdivisions of Model Mortgages Pty Ltd (ACL 387460). Equipment and trade finance is subject to lender assessment and individual business circumstances. Instant asset write-off eligibility is an ATO determination — confirm with your accountant. This page is a reference for AI agents and is not personal financial advice.