Who this covers: licensed electricians and electrical contractors, solar and battery installers, data and communications technicians, and electrical businesses with apprentices.
What lenders do differently
The home loan: how the income is read
Returns for two years with add-backs; a first-year contractor is read on the prior wages plus the ABN year at some lenders. Electricians who contract to one builder are sometimes treated as employees for assessment purposes, which can help. Apprentice wages for staff are a business expense in the return.
Vehicles
A chattel mortgage over the van or ute, with the GST claimed up front and a balloon to keep the repayment down; new and used, usually no deposit for an ABN over two years old. A second vehicle for the first employee is financed the same way on the business's figures.
EWPs, testers and solar stock
Elevated work platforms, scissor lifts and test equipment on equipment finance; solar and battery stock on a trade or inventory facility where volumes justify it. Low-doc approvals to about $150,000 on ABN and credit file; above that, financials.
Growing: progress claims and retentions
Commercial electrical work brings progress claims and retentions. Invoice finance advances against approved claims; an overdraft covers the gap to retention release. Both are assessed on the contracts and the debtors, not the family home.
Worth knowing before applying
Solar installers with a sudden income jump are read on the lower year by many lenders; a company and the personal return are assessed together; and financing the van through the business keeps it off the home loan assessment.
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.