Who this covers: concreters, formworkers and concrete pumping operators on an ABN, and concrete businesses with crews and plant.
What lenders do differently
The home loan: how the income is read
Returns for two years with add-backs, plant depreciation being the large one. Subcontracted work for one builder is accepted with the contract.
Trucks, pumps and bobcats
Trucks over 4.5 tonnes as commercial vehicles over longer terms; line pumps, boom pumps and bobcats on machinery finance with a balloon where the plant holds value; used plant with a valuation.
Formwork and tools
Equipment finance or a small business loan for formwork sets and tools; low-doc to about $150,000 for an established ABN.
Cash flow on claims
Slabs for builders and civil work are paid on progress claims and 30 to 60 day terms; invoice finance or an overdraft sized to a month of turnover covers concrete supply, which is paid on shorter terms.
Worth knowing before applying
A concrete supplier's trade account is a liability in the business return; plant financed through the business stays off the home loan side; and a pipeline letter from a head contractor helps.
The tools that fit
- Chattel mortgage calculator
- Business and asset finance
- Borrowing capacity calculator
- Working capital and overdraft calculator
- Equipment finance calculator
- What lenders ask for: checklists
Not sure whether the business needs an overdraft, or how big: the working capital calculator works it out from sales, payment terms and stock, with presets for a typical business like yours.
Policies on all of the above differ lender to lender and change without notice; the value of the conversation is knowing which lender's policy reads your payslip best on the day. Understanding how your income is read before you apply is what makes the application calm.