Key highlights
- Many lenders are comfortable with contractor ABN income
- Business bank statements showing regular deposits help
- Chattel mortgage or commercial structures may suit contractors
- One person, Simon Kendrick, compares 80+ lenders
- Obligation-free quote for eligible applicants
Contractors often need a reliable ute, van or 4WD to get to site and get paid, but the way they earn can make finance feel complicated. The good news is that many lenders are comfortable with contractor income when the application is put together well. This guide walks through how it typically works.
Why are contractors a distinct category?
Contractors and subcontractors usually invoice through an ABN rather than drawing a regular wage, so income can move month to month. Lenders understand this pattern, but they may want to see how steady the work is. Trading history, the type of contracts you hold and whether you are GST registered can all influence how an application is assessed, subject to individual lender criteria.
What helps a contractor application?
A consistent ABN, business bank statements showing regular deposits, and a clean recent credit position all tend to support eligible applicants. If you own property, some lenders may consider that as part of the picture, though it is not always required. Every lender weighs these differently, which is where comparing options matters.
Which finance structure suits contractors?
Depending on your circumstances, a chattel mortgage or other commercial structure may suit contractor use. Any GST, depreciation or tax treatment should be confirmed with your accountant or registered tax adviser, as it depends on how your business is set up.
How do you compare contractor finance lenders?
At Overdrive Business Vehicle Finance you deal with one person, Managing Director Simon Kendrick, who compares options across 80+ banks and non-bank lenders for ABN businesses. Request an indicative, obligation-free quote and we will do a soft check to see what may fit your situation.
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