# How much can a tradie actually borrow?
> How much can a NZ tradie borrow for a ute, van or plant? The honest answer, what drives your real borrowing power, and why your mate's number means nothing.
Source: https://tradiefinance.co.nz/blog/how-much-can-a-tradie-borrow
Published: 2026-06-14T08:00:00.000Z
Category: business-finance
Tags: business-finance, borrowing, self-employed
Image: https://tradiefinance.co.nz/images/resources/generated/tradie/article/how-much-can-a-tradie-borrow-primary.jpg
Image alt: A tradie reviewing finance options for How much can a tradie actually borrow?
TL;DR: There's no fixed number for how much a tradie can borrow. Your capacity is driven by trading history, profit and serviceability, deposit, the asset's resale value, existing commitments, GST registration and structure. Your mate's approval tells you nothing about yours. Get your books tidy, know your net profit, and talk it through with a broker who can match you to the right lender on the panel.
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The first thing nearly every tradie asks us is the same thing: *'How much can I borrow?'*
We get it. You've spotted a tidy ute, or the work's picking up and you need a second vehicle, or the old plant is on its last legs. You want a number. And the honest answer — the one that's actually useful — is: *it depends.*
That's not a cop-out. Here's how it works, because once you know what actually drives the number, you can usually work out your own ballpark before you even pick up the phone.
## Why there's no single number
We're a broker, not a lender. We don't have one set of rules — we place each application across a panel of lenders, and every one weighs things slightly differently. One loves established sparkies with two years of clean books. Another will back a newer business if the deposit's solid and the asset holds its value.
So "how much can a tradie borrow" is really "how much will *the right lender* lend *you* for *this asset* right now." Six things move that number more than anything else.
## 1. Trading history — how long you've been at it
Lenders want to see you've survived the hard bit. A business that's been trading two-plus years with steady work is a very different risk to one that started last month.
- **Under 6 months:** options narrow. You're often looking at finance assessed more like personal lending, or a low-doc product. See our piece on [getting finance when you're newly self-employed](/help/can-i-get-finance-if-newly-self-employed).
- **6–24 months:** the door opens properly, especially with financials or solid bank statements.
- **2+ years with accounts:** you're in the strongest position, and the most lenders will compete for you.
It's not that newer businesses can't borrow — plenty do. It's that the *how* changes, and so does the *how much*.
## 2. Profitability and serviceability — can the loan be paid?
This is the big one, and it's where tradies most often surprise themselves. **Serviceability** just means: after your living costs and existing commitments, can your income comfortably cover the repayments?
A lender (or a broker working it out for you) looks at your profit — not your turnover. A chippie turning over $300k but netting $45k after costs and drawings has the borrowing power of a $45k earner, not a $300k one.
Big invoices feel like big borrowing power. They're not. Lenders care about what's left after materials, fuel, subbies, GST and your own wages. Know your net profit before you ask how much you can borrow — it's the figure that actually drives the answer.
For genuine business-purpose finance, the line-by-line consumer affordability checks largely don't apply — that's the [CCCFA business-purpose exemption](/blog/does-the-cccfa-apply-to-my-business-loan) at work. But the lender still has to be satisfied the business can carry the debt. Different framework, same common sense.
## 3. Deposit — how much skin you've got in
A deposit does two jobs. It lowers what you need to borrow, and it tells the lender you can manage cash.
Plenty of asset finance is available with little or no deposit if everything else stacks up — the asset itself is the security. But a deposit of, say, 10–20% widens your options, can sharpen the deal, and lifts your overall capacity. Newer businesses especially can use a deposit to make up for a thin trading history.
How much varies by lender and asset. We break it down in [do I need a deposit for a work van](/help/do-i-need-deposit-for-work-van) and [how much deposit for equipment finance](/help/how-much-deposit-for-equipment-finance).
## 4. The asset — and what it's worth in four years
Here's something most people miss: *what you're buying changes how much you can borrow against it.*
With most tradie finance, the asset is the security. A [chattel mortgage](/glossary/chattel-mortgage) means the lender registers a security interest over the ute or plant — so they care about what it'd be worth if things went sideways.
- A popular, late-model Hilux or Ranger holds value, so lenders are comfortable lending more against it.
- A rare import, a heavily modified rig, or ageing specialist gear that's hard to resell? Expect tighter terms and a bigger deposit ask.
- Brand-new vs used changes the [residual value](/glossary/residual-value) picture too.
The better the resale, the more comfortable the lender, the more you can borrow. It really is that direct.
## 5. Existing commitments — what's already on the books
Every dollar you're already repaying is a dollar of capacity gone. Existing vehicle finance, a [business overdraft](/glossary/business-overdraft), equipment on [hire purchase](/glossary/hire-purchase), credit cards, the home mortgage — they all reduce what's left to service a new loan.
This is also where a clean credit record earns its keep. Defaults or messy arrears don't automatically stop you — see [does bad credit stop tradie finance](/help/does-bad-credit-stop-tradie-finance) — but they can shrink the number or push you to a different lender on the panel.
## 6. GST registration and structure
These two quietly shape both how much you can borrow and how good the deal is for you.
- **GST registration** lets you claim the GST back on the purchase (the 3/23 of the GST-inclusive price), which is real cashflow back into the business — and it signals an established operation. Worth reading [do I need to be GST registered](/help/do-i-need-to-be-gst-registered).
- **Structure** — sole trader vs company — affects how lenders assess you and how the asset sits on the books. A registered company with financials often borrows more cleanly than a brand-new sole trader.
Neither is a hard gate. But both feed the number.
## "But my mate got $80k, easy"
This is the myth we have to bust almost daily. Your mate's approval tells you *nothing* about yours.
He might've been trading five years to your six months. His books might be spotless while yours are a shoebox of receipts. He might've put 30% down, or be buying a Ranger while you're after a one-off import.
Two tradies in the same trade, same town, same week can get wildly different answers — and both lenders are being perfectly sensible. **Borrowing capacity is personal.** Comparing your number to someone else's is like comparing your quote to the bloke next door's without knowing the job.
Your mate's approval tells you nothing about yours. Borrowing capacity is personal — built from your books, your asset and your commitments, not his.
## Some honest rules of thumb
We can't promise you a number — nobody honest can until they've seen your situation. But here's the rough shape of it:
- If your business **services the repayment comfortably** out of net profit, the asset **holds its value**, and your **credit's clean**, you're in good shape — and the amount is usually limited more by serviceability than by anything else.
- A **bigger deposit** or a **strong, resaleable asset** can stretch capacity, especially when trading history is thin.
- **Existing debt** is the most common handbrake — clearing or consolidating it before you apply can lift what you qualify for. (See our [refinancing and debt consolidation guide](/guides/refinancing-and-debt-consolidation-for-tradies).)
- **Tidy books beat big talk** every time. A few months of clean bank statements and up-to-date accounts can be worth more than another $10k of turnover. See [getting your books finance-ready](/blog/getting-your-books-finance-ready).
## How to find your actual number
Don't guess, and don't anchor on your mate's deal. Here's the order we'd work it:
1. **Know your net profit** — the real figure after costs, GST and your wages. This is your anchor.
2. **List what you already repay** each month. That's your capacity, used up.
3. **Decide on the asset and a deposit** you're comfortable with. Pick a segment, not just a dream model.
4. **Get your books to hand** — recent financials or 90 days of bank statements, GST returns if registered.
5. **Talk it through with a broker** who can run it across the panel and tell you what's realistic — without putting credit enquiries on your file before you've decided.
Our [how to apply for tradie finance](/guides/how-to-apply-for-tradie-finance) guide walks through the documents and steps in full, and the [tradie business finance guide](/guides/tradie-business-finance-guide) zooms out to the whole picture.
## The bottom line
"How much can I borrow?" doesn't have a number — it has a *recipe*: trading history, profit and serviceability, deposit, the asset, your existing commitments, GST and structure. Get those lined up and the number tends to look after itself.
The good news is you don't have to work it out alone, and you don't have to take the first answer one lender gives. That's what a broker is for — we know which lender on the panel suits your situation, so you're not wasting credit enquiries on lenders who were never going to fit.
If you want a real, no-pressure read on what you could actually borrow — based on your numbers, not your mate's — [book a call](/book-a-call) and we'll work it through together. Always confirm the tax side with your accountant or IRD.