Quick answer
Electrical contractors can borrow $20,000 to $50,000 secured on property, with no formal valuation and no cash flow evidence. It covers cable, switchboards, wages and licensing costs while you wait on builders, and funding can follow in as little as 24 hours once approved.
Key points
- Loans of $20,000 to $50,000 secured on property.
- Stock, wages and vehicle costs covered while invoices are outstanding.
- No bank statements or cash flow evidence.
- Funding in as little as 24 hours once approved.
- Typical use
- Stock, switchboards, wages, vehicles
- Security
- Property equity
- Loan size
- $20,000 to $50,000
- Speed
- As little as 24 hours once approved
Electrical work carries heavy upfront costs. Cable, switchboards, conduit, lighting and fittings for a new development are bought before the first invoice is paid. Add apprentice wages, licensing, insurance and a fleet of well-equipped vans, and it is easy to see how a good business can run short.
The electrical cash cycle
Stock before payment. A rough-in on a large build needs a lot of material at the start. Supplier accounts help, but credit limits are finite.
Multiple stages. Rough-in, fit-off and commissioning are often paid separately, each at the builder’s pace.
Compliance costs. Licences, test equipment calibration, insurance and certificates of compliance all cost money.
Callout seasonality. Service work spikes in storms and heatwaves, then drops away.
Late-paying builders. A single large customer that pays at ninety days can strain any contractor.
When cash flow dips, a cash flow lender sees weak deposits and declines. A secured lender looks at what you own.
What an electrician’s loan can cover
- A stock order for a rough-in or a large fit-off.
- Apprentice and tradesperson wages and super.
- New test equipment, cable drums or a cable puller.
- A van purchase or repairs.
- Licence, insurance and compliance costs.
- An overdue supplier account that has stopped deliveries.
- A BAS or PAYG bill.
How the loan works
We write loans of $20,000 to $50,000 on the strength of property, at up to 80% of residential or 70% of commercial value net of debt. Nothing like a formal valuation or cash flow evidence is required first, and the fastest funding is 24 hours after approval. Read more on easy loans with almost no questions.
A worked example
An electrical contractor wins the rough-in for a block of eight apartments. Cable, conduit and switchboards total $29,000 and the supplier wants payment before delivery. The builder pays thirty days after the stage is inspected. Wages for the crew are $8,500 a fortnight. The director owns a home worth about $950,000 with $400,000 owing. A $40,000 advance, secured on property, meets the stock order and the first two pay runs, while up to three months of prepaid interest means no repayment falls due before the inspection is paid. This worked example is for illustration and is not an offer of finance.
Tips that help
- Ask the builder for a materials deposit on larger jobs.
- Agree the payment schedule in writing before the first day.
- Return unused stock to the supplier for credit.
- Keep a record of every variation, signed.
- Check your tax reserve against the next BAS before taking drawings.
Repayments
Most loans open with prepaid interest for as long as three months and then settle into weekly repayments. Most electricians repay from cash flow as stages are paid. Compare costs and ask about any terms for repaying early. For the detail, read prepaid interest and weekly repayments, then weigh the total cost and any early repayment terms.
Managing supplier accounts and credit limits
Electrical wholesalers set trade credit limits based on your history, and a large job can exceed them. Talk to your supplier before you reach the limit and ask what they would need to raise it. Return unused stock promptly for credit, and avoid ordering a full job’s materials on day one when staged deliveries are possible. Keep a clear record of every variation and sign-off, because electrical work often changes as other trades finish.
Costs people forget
Test and tag equipment, calibration of meters, continuing education, workers’ compensation and public liability all arrive as lumps. A short loan can smooth them, but a simple monthly reserve is cheaper. Put a fixed amount aside each week, labelled for compliance, so renewals are not a shock.
Getting paid faster on commercial work
Commercial electrical jobs are often paid on thirty-day terms from the end of the month of invoice, which can mean sixty days from the work. Invoice weekly or by stage, quote the purchase order number, and send invoices to the right accounts contact. Ask about early payment options, and for ongoing clients agree terms at the start. A ledger that shows who owes you what, and for how long, makes a cash conversation with a lender or your accountant much simpler.
Most electricians know their numbers well in a busy month. The trick is knowing them in a quiet one, so build a forecast that shows both and borrow against the quiet month.
Apply
Use the application form: your amount, property estimate and what is owing, your state, monthly cash flow and your business name. A person will call you. We assess each application on its merits, and this page is not an offer of finance.
Frequently asked questions
Can an electrician borrow without showing cash flow?
Yes. Because the loan is secured on property, we do not ask for bank statements or evidence of cash flow.
Can the loan cover a large stock order?
Yes. Cable, switchboards, lighting and fittings for a big job can be bought upfront and repaid from the job.
What if my licence or insurance renewal falls due at a bad time?
Licence, insurance and compliance costs are common uses of a short loan.
Do you lend to electrical contractors who work for one builder?
Yes, though a single large builder paying late is exactly the situation a secured loan is built for.
Can I use a work van as security?
A company vehicle owned outright can secure up to 50% of its sale value.