Equipment finance can help Australian electricians fund the vehicles, tools and specialist equipment they need to take on work without paying the full purchase cost upfront.
For a sole trader electrician, the next asset might be a properly fitted service van, a replacement ute, new testing equipment, a scissor lift, a trailer or a larger package of tools required for a new contract.
For an established electrical business, the requirement might be several additional vehicles and equipment packages for new technicians joining the team.
Either way, speed can matter.
If a vehicle is off the road, a project is starting next week or specialist equipment needs to be available on site, waiting several weeks for a traditional finance process can hold the business back.
The Asset Finance Shop (TAFS) is a specialised asset finance broker with access to more than 80 bank and non-bank lenders. TAFS can arrange equipment finance for Australian electricians, sole traders and small trade businesses, including new and used assets, low doc applications and newer ABNs.
For straightforward applications where the required information is available, approval can be arranged in as little as 24 hours.
This guide explains what electricians can finance, what lenders assess, what documents may be required and how TAFS approaches fast equipment finance approvals.
Equipment finance is commercial asset finance used to purchase vehicles, machinery and equipment that support a business.
For an electrical contractor, this could include the vehicle used to reach jobs as well as the equipment carried inside it.
Eligible assets may include:
Instead of paying the entire purchase price in cash, the business finances the asset and makes agreed repayments over time.
This allows more business capital to remain available for day-to-day operating costs.
For many electricians, equipment is directly connected to the amount and type of work the business can complete.
A vehicle that is too small, unreliable or poorly fitted out can limit productivity.
A lack of specialist testing or access equipment can mean hiring equipment repeatedly or turning down certain jobs.
Equipment finance can help a business purchase the assets it needs while keeping more cash available for:
The objective is not simply to own more equipment.
The asset should improve what the business can do.
A van can be one of the most important assets in an electrical business.
It may carry:
Finance can potentially be arranged for new or used commercial vans.
A growing electrician may finance a van when:
Electricians working across construction sites, industrial facilities, mining support or regional areas may prefer a commercial ute.
Finance can potentially cover eligible new and used work vehicles.
The lender may assess:
A work vehicle becomes significantly more useful when it is configured properly.
Depending on the transaction and lender, finance may potentially include eligible equipment associated with the vehicle, such as:
The structure depends on how the vehicle and equipment are being purchased.
Specialist electrical businesses may need significant investment in testing equipment.
This can include equipment used for:
Where the equipment meets lender requirements and minimum finance amounts, it may potentially be financed rather than purchased entirely from business cash.
Larger commercial and industrial electrical projects can require specialist cable handling and pulling equipment.
Owning the equipment may reduce ongoing hire costs where the business uses it regularly.
Electricians working in:
may regularly require access equipment.
A business that hires a scissor lift repeatedly may eventually compare the cost of continued hire with purchasing one.
Selected lenders can finance eligible new and used access equipment.
Generators can support:
Commercial generators may be financed where they form part of the business operation.
An electrician may use a trailer for:
Eligible commercial trailers can potentially be financed.
Individual hand tools may be too small to suit traditional asset finance.
Larger identifiable tool and equipment packages may be considered where they meet the lender's minimum finance amount and other requirements.
For example, a business might be purchasing a complete equipment package for a new service vehicle rather than financing one drill or tester individually.
Yes.
Sole traders can apply for equipment finance subject to lender criteria.
A lender may consider:
Being a sole trader does not automatically mean full financial statements are required.
Selected lenders can offer low documentation pathways.
Potentially.
There is no single minimum ABN age used by every equipment finance lender in Australia.
Some lenders prefer established businesses.
Selected lenders can consider newer ABNs where the overall application supports the purchase.
For example:
ABN age: 7 months
Electrical experience: 9 years
Current work: Existing residential and commercial clients
Asset: Work van and equipment package
The business itself may be new, but the electrician has substantial industry experience.
That distinction can be important.
The lender may consider:
That does not necessarily mean you are inexperienced.
An electrician may have spent years working for another electrical contractor before establishing their own business.
When applying for finance, explain:
The lender can then assess the complete background rather than only the registration date of the ABN.
Again, provide the complete history.
For example:
Sole trader history: 4 years
New company ABN: 6 months
Customers: Same
Electrical work: Same
Business owner: Same
The company is new.
The underlying operation may not be.
This should be explained before the application is submitted.
Potentially.
Selected lenders can provide low doc equipment finance for eligible sole traders and small businesses.
Instead of requiring complete financial statements in every case, the lender may consider:
Low doc does not mean no documentation.
It means the lender may use more current and streamlined information rather than requiring a complete set of annual accounts.
Not with every lender.
One of the advantages of using an equipment finance broker is that lender documentation requirements differ.
Some lenders may request:
Others may have pathways based on:
TAFS identifies the lender pathway first and confirms what that lender actually needs.
Not necessarily.
Some applications require tax returns.
Others may be assessed through a low doc process.
The requirement depends on:
Not in every application.
Some lenders may request BAS to verify turnover.
Others may use recent business bank statements.
The correct documentation pathway depends on the application.
For sole traders and newer businesses, recent bank statements can provide a current picture of the operation.
They may help show:
Where annual financial statements are unavailable or out of date, current bank activity can become particularly useful.
Straightforward TAFS equipment finance applications can be approved in as little as 24 hours once the required information has been provided.
Fast approval can be useful where:
A fast approval process depends heavily on how prepared the application is.
Provide:
If the current entity is new but you have previous business history, make that clear.
For a newer business, relevant experience can materially improve the lender's understanding of the application.
Include:
Do not wait until the lender asks.
Having recent statements available can make the assessment faster.
Provide details such as:
For equipment packages, provide a clear invoice or quote showing what is being purchased.
For example:
A clear business reason helps the application make sense.
Include current:
The lender needs the complete position.
If a lender needs one additional document, supplying it the same day can make a significant difference to approval time.
Equipment finance approval can take longer where there are:
TAFS pre-vets applications before formal submission so these issues can be identified earlier.
Going directly to one lender means your application is assessed against that lender's individual policy.
An equipment finance broker can compare your circumstances with multiple lender criteria.
TAFS has access to more than 80 bank and non-bank lenders.
That can be particularly useful for:
The goal is not to submit your application everywhere.
It is to identify a lender whose criteria suit it before making the formal application.
TAFS uses a structured process.
TAFS reviews:
TAFS starts with a soft credit check.
This allows the initial credit position to be reviewed without creating a formal lender enquiry.
The internal credit team assesses the application before it is formally submitted.
The team can compare:
against available lender requirements.
Different lenders can have different policies around:
TAFS uses its lender panel to find realistic options rather than treating every application the same way.
The finance can be reviewed around:
Once a suitable lender and structure are selected, the formal application is submitted.
TAFS coordinates the remaining lender and seller requirements through to settlement.
TAFS primarily arranges equipment purchases using a chattel mortgage.
Under a chattel mortgage:
This structure can potentially be used for eligible:
Speak with your accountant about GST, depreciation, finance interest and other tax treatment.
Potentially.
A balloon leaves an agreed amount outstanding at the end of the finance term.
For example:
Amount financed: $80,000
Finance term: 5 years
Balloon: $16,000
Regular repayments are generally lower because $16,000 remains outstanding at the end.
A balloon can help preserve monthly cash flow, but the final amount still needs to be dealt with.
Whether a balloon is appropriate depends on:
Not always.
Deposit requirements depend on the complete application.
The lender may consider:
A deposit can reduce the amount financed and regular repayment.
However, electricians should also consider how much business cash needs to remain available for:
The biggest possible deposit is not automatically the best business decision.
Potentially.
Selected applications may qualify for finance covering the full purchase price.
This depends on:
Yes.
Selected lenders provide finance for used commercial vehicles.
The lender may consider:
An older vehicle may have different finance term options from a newer one.
Potentially.
Selected lenders can finance private-sale commercial assets.
Private sales may involve additional checks around:
An inspection or valuation may also be required.
Potentially.
Selected lenders finance eligible auction assets.
Pre-approval can help establish your likely borrowing position before bidding.
Final approval remains subject to the asset purchased.
Potentially, depending on the way the assets are being purchased and the lender.
For example, an electrician setting up another technician may need:
Where appropriate, TAFS can review the total requirement and determine how it can be structured.
In some cases, assets may be financed together.
In others, separate facilities may make more sense.
Consider an electrical contractor who has enough work to employ another electrician.
The business requires:
Used work van: $55,000
Service equipment: $15,000
Specialist tools and testing equipment: $20,000
Total equipment requirement:
$90,000
Rather than spending $90,000 from cash reserves, the business may consider financing eligible assets.
The lender may assess:
The finance should work alongside the cost of actually putting another electrician on the road.
An electrician may have a fully paid-off van but still decide to replace it.
Why?
Because no repayment does not mean no cost.
An ageing vehicle can create costs through:
The right comparison is:
Cost of keeping the old vehicle operating
versus
Cost and productivity of the replacement vehicle
For a mobile trade business, reliable transport is part of the service being sold.
An electrical contractor may want to move into larger commercial or industrial work.
That could require additional:
If that equipment enables the business to complete work that was previously unavailable or subcontracted, finance can spread the cost while the new equipment begins producing revenue.
Paying cash avoids finance costs.
But it also uses cash immediately.
For example:
Van and equipment package: $100,000
The business spends the full $100,000 upfront.
The business retains more of that cash while paying for the equipment over time.
The retained funds may be useful for:
The right decision depends on the business's cash position and what else the money could be used for.
Some electricians regularly hire specialist equipment.
For occasional use, that may make sense.
But if the same item is being hired repeatedly, compare:
Owning the equipment can potentially make sense where it is being used regularly enough to generate income.
How long has the current business operated?
How long has the applicant worked in the trade?
How much income is currently flowing through the business?
Does the business have:
How has previous credit been managed?
What vehicle, equipment and business repayments already exist?
What is being purchased and how will it support the business?
Can the business comfortably manage the proposed repayment alongside its other commitments?
Before applying, prepare:
|
Area |
Information |
|
Identity |
Driver's licence |
|
Business |
ABN and business structure |
|
Experience |
Electrical industry background |
|
Banking |
Recent business bank statements |
|
Work |
Current customers, projects or contracts |
|
Existing debt |
Vehicle, equipment and business finance |
|
Asset |
Van, ute, tools or equipment being purchased |
|
Purchase |
Quote or invoice |
|
Contribution |
Deposit or trade-in if applicable |
|
Seller |
Dealer or private seller |
|
Settlement |
Insurance and final asset information where required |
Not every lender requires every item.
Yes.
Sole traders and electrical businesses can potentially finance eligible work vehicles, trailers, access equipment, testing equipment, generators and other commercial assets.
Eligible assets can include:
The exact options depend on the lender and asset.
Yes, subject to lender criteria.
The lender may consider ABN history, industry experience, bank statements, credit history, current work and the proposed asset.
Potentially.
Selected lenders can consider newer ABNs where the complete application supports the purchase.
Not with every lender.
Low doc options may be available using recent bank statements and other supporting information.
Yes.
Straightforward applications can be approved in as little as 24 hours once the required information is available.
More involved applications may take longer.
Have your ABN details, recent bank statements, asset information, current work details and existing commitments available before the formal application is submitted.
Yes.
Eligible new and used commercial vans can be financed.
Potentially.
Larger identifiable tool and equipment packages may qualify where they meet the lender's minimum finance requirements.
Potentially.
Commercial test and tag equipment and other eligible electrical testing equipment can be considered.
Yes, through selected lenders.
Both new and used access equipment can potentially be financed.
Potentially.
Commercial generators used for income-producing business work can be considered by selected lenders.
Yes.
Eligible commercial trailers can be financed.
Yes.
Selected lenders finance used commercial assets.
Potentially.
Selected lenders accept private sales, although additional seller and asset checks may apply.
Potentially.
Selected lenders can assess eligible applications using recent bank statements and other current business information.
Not necessarily.
Deposit requirements depend on the complete application and lender.
Potentially.
Selected applications may qualify for finance covering the full eligible purchase price.
TAFS primarily arranges chattel mortgage finance for eligible commercial vehicles and equipment.
The business owns the asset from settlement while the lender holds security until the finance has been repaid.
Different lenders have different criteria for sole traders, new ABNs, low doc applications, used equipment and credit profiles.
A broker can compare those criteria before selecting a lender for formal submission.
TAFS has access to more than 80 bank and non-bank lenders.
No.
TAFS assesses the application through its internal credit process, compares suitable lender criteria and submits one formal application to the selected lender.
No.
TAFS starts with a soft credit check before the formal lender application.
TAFS maintains a 93% approval rate.
Individual finance applications remain subject to lender approval.
For an electrician, the right vehicle and equipment can directly affect how many jobs the business can complete, what type of work it can take on and how reliably it can service customers.
Whether you are replacing a work van, setting up another electrician, purchasing specialist test equipment or adding access equipment for larger jobs, the finance should be structured around how the asset will actually support the business.
TAFS can review your ABN history, electrical industry experience, bank statements, credit position and proposed equipment before comparing suitable options through access to more than 80 bank and non-bank lenders.
For straightforward applications with the required information available, approval can be arranged in as little as 24 hours.
The Asset Finance Shop (TAFS) is a commercial asset finance brokerage based in Sydney.
Information on this page is general in nature and doesn't take your personal circumstances into account. Speak to a TAFS broker for options tailored to your business, and to your accountant regarding tax treatment.