Equipment Loans for Tradies: Financing Tools and Plant

Tips 03 Sep 2026

An equipment loan for tradies finances tools, plant or machinery against the asset itself rather than as a general cash advance. We’re Southern Cross Business Finance, a commercial finance brokerage based in Forest Hill, Melbourne, and we structure most equipment purchases this way because the asset gives us something specific to secure the loan against.

Why finance the equipment rather than borrow cash?

Borrowing cash and buying equipment with it leaves the loan unsecured. Financing the equipment directly, through a chattel mortgage, means the equipment itself is the security, which changes our risk calculation. This matters particularly for a trade business without a long track record, since the asset does some of the work trading history would otherwise need to do.

What structures do we offer?

We arrange leasing, hire purchase, rental and chattel mortgage for equipment purchases. A chattel mortgage generally suits equipment you want to own outright from the start. Leasing and rental suit equipment you might upgrade or replace on a cycle. Hire purchase sits between the two, with ownership transferring at the end of the term. Which fits depends on how long the equipment will realistically be used and how the repayments best suit your cash flow.

What can be financed this way?

We arrange equipment finance across road transport, earthmoving and construction plant, and agricultural machinery, alongside general manufacturing and industrial equipment. For a trade business, this typically covers hand and power tools bundled as a package, larger plant such as excavation or earthmoving equipment, and specialised trade-specific machinery.

What do we check?

Even with the equipment as security, we still look at ABN history, GST registration and recent bank statements. We require an ABN active with GST registration. The asset reduces our risk; it doesn’t remove the assessment.

Equipment loans for tradies FAQs

Can I finance second-hand tools and equipment?

Generally yes, though the age and condition of the asset affects the term and structure available.

What is the difference between a chattel mortgage and leasing for equipment?

A chattel mortgage gives you ownership from the start, secured against the asset. Leasing and rental suit equipment expected to be upgraded or replaced periodically, where ownership matters less than access.

Can equipment finance be claimed on tax?

Deductibility depends on the structure and on business use, and differs between a chattel mortgage, a lease and a hire purchase. That’s a question for your accountant.