Finding a loan for business or personal use as a tradie can be tough, but there are options available.
Whether you need a loan to cover financing for equipment, cash shortfalls due to unpaid invoices, or even for a personal purchase, it’s important to know how to find the right financing for you. Tradie loans can be secured or unsecured, are available from many different lenders and can be used for both personal and business reasons. Read this guide to find out how to get financing for what you need.
What options do tradies have for loans?
NAB QuickBiz Loan Offer
The NAB QuickBiz Loan allows you to borrow up to $50,000 for your business needs. The loan is available for new or existing business needs and features no upfront fee and tax deductible interest repayments. Link your accounting software directly into the application.
- Interest Rate From: 13.85% p.a.
- Interest Rate Type: Fixed
- Application Fee: $0
- Minimum Loan Term: 1 year
- Maximum Loan Term: 2 year
- Minimum Loan Amount: $5,000
- Maximum Loan Amount: $50,000
SocietyOne Personal Loan
The SocietyOne Personal Loan offer is the first Peer2Peer loan in Australia. It is a low interest personal loan with no ongoing fees. Borrow up to $35,000
- Interest Rate From: 7.90% p.a.
- Comparison Rate: 9.58% p.a.
- Interest Rate Type: Fixed
- Application Fee: 2.5% (of loan amount)
- Minimum Loan Term: 2 year
- Maximum Loan Term: 5 year
- Minimum Loan Amount: $5,000
- Maximum Loan Amount: $35,000
Sunshine Short Term Offer
This is a short term loan offer with a fast and easy online application for bad credit borrowers who are employed. You can apply today to get approved for up to $2,000.
- Loan Amount: $2,000
- Loan Term: 9 weeks
- Turnaround Time: 30 Minutes - conditions apply
- Total Cost of Borrowing $100: 20% of borrowed amount + 4% of borrowed amount each month
- Bad credit borrowers OK
- Quick and easy Approval
- No Credit Checks - Must be employed
You can find loans from various types of lenders, including:
- Peer-to-peer (P2P) lenders. If you have good credit, you might want to consider applying with a P2P lender, also known as a marketplace lender. P2P loans are funded by individual investors, and the lender operates as an intermediary. You can usually find more competitive rates compared to other types of loans, depending on your credit history. These loans are available for both personal and business use.
- Banks and credit unions. If you have a good relationship with your current bank or have been operating as a sole trader for long enough to provide tax history, you may be eligible for a loan from a bank or credit union. There are flexible line of credit or overdraft loans, and some lenders offer same-day funding.
- Payday lenders. If you’re looking for short-term finance or have bad credit, a payday lender could be an option to consider. They offer loans of varying amounts that are designed to be repaid within the short-term. Keep in mind that you will be charged higher fees and rates with these lenders.
What types of tradie loans are available?
There are different types of personal and business tradie loans, any of which you might have in mind when you’re searching for a loan as a tradesman. Here’s a breakdown of these types, and some of the features that come with them:
- Car loans.
These loans can come in various forms, including as standard personal car loans, novated leases, chattel mortgages or low doc loans designed for tradies and other self-employed borrowers.
- Truck and equipment financing.
While essential to your business, covering the costs of these machines can be expensive. There are secured and unsecured loans that can help cover the immediate cost of purchasing or leasing this equipment.
- Business loans.
These loans are designed to help a small business get off the ground or cover the costs in your existing business.
- Short-term finance.
If you just need a loan to see you through, small loans up to $2,000 and loans for larger amounts up to $5,000 are available.
Here’s how you can compare your tradie loan options
Still unsure which type of loan is best for you? Here are a few points to keep in mind when comparing your loan options:
- Loan term.
How long do you need the loan for? Some of the loan options are designed to be short-term, such as payday loans, which may be ideal for certain scenarios but not in others. Decide what you need and choose a loan term to work for you.
- Loan amount.
If you’re unsure how much you need to borrow, there are some loan options that can provide you with ongoing credit to draw down on as you need to, for instance a line of credit. If not, only borrow as much as you need.
- Repayment flexibility.
- Are you able to select your repayment flexibility, that is, weekly, fortnightly or monthly? You should also check if you are able to make extra repayments without being charged a fee or if you can pay back the loan completely without being charged.
- Fees and interest.
Compare the costs of similar loan products against each other to ensure they are competitive.
- Ease of application.
Can you apply for the loan online? Are your business financials taken into account? Check what is involved in the application process before you apply.
- Turnaround time.
This is especially true if the need for funds is time-sensitive. Check how quickly the funds will be disbursed following approval.
- Loan management.
Most lenders allow you to easily manage your loan through an online account or app. Find out what services the lender provides.
Frequently asked questions
Am I eligible for a tradie loan?
Eligibility criteria depends on the lender you’re looking to apply with and your own personal situation. Generally, you need to be over the age of 18 and an Australian citizen or permanent Australian resident. Minimum income criteria will also apply.
How do I verify my income?
This depends on the lender you are applying with. You will usually need to provide your bank statements or the last two years of tax returns, but you can verify this on finder.com.au review pages and the lender’s website before starting your application.
Can I use a P2P loan for business purposes?
There are a few lenders that offer marketplace loans for business purposes. You can find out more about P2P business lending in this guide.