🚛 Can Sole Traders Get Horse Float Finance?
Yes! If you’re a sole trader, you can qualify for horse float finance, but lenders will assess your business and personal financials to ensure you can afford repayments. Unlike PAYG employees, sole traders often need to provide extra documentation to verify income.
To improve approval chances, lenders may require:
✔️ An active ABN (Australian Business Number)
✔️ Bank statements or tax returns to show income
✔️ A secured loan using the horse float as collateral
✔️ A deposit to reduce borrowing risk
🏦 How Lenders Assess Sole Traders for Horse Float Finance
Since sole traders don’t receive traditional payslips, lenders look at alternative proof of income to assess financial stability.
| 🔑 Factor | Why It Matters | How It Affects Approval |
|---|---|---|
| 📑 Business Income Stability | Lenders check if your income is steady | Higher, consistent earnings improve approval odds |
| 💰 Tax Returns or BAS Statements | Verifies business revenue and profit | 6–12 months of statements may be required |
| 🚛 Loan Security | Using the float as collateral reduces lender risk | Secured loans offer better rates |
| 📆 Deposit Amount | Reduces the loan size and lender risk | A 10-30% deposit improves approval chances |
| 📉 Credit Score | Reflects financial responsibility | Higher scores lead to lower interest rates |
💡 Tip: If your business income fluctuates, applying when you have strong financial records (e.g., after tax season) may improve approval chances.
📋 Best Finance Options for Sole Traders
If you’re a sole trader, these finance options may work best for your situation:
| 🔑 Loan Type | How It Works | Best For |
|---|---|---|
| 🚛 Secured Horse Float Loan | Uses the float as collateral for lower rates | Sole traders with consistent business income |
| 💰 Chattel Mortgage | Business loan with potential tax benefits | Sole traders using the float for work |
| 📆 Low-Doc Loan | Requires minimal paperwork (bank statements, BAS) | Self-employed traders without full tax returns |
| 📉 Guarantor Loan | A family member co-signs to improve approval odds | Sole traders with low income or short trading history |
💡 Tip: If your horse float is for business use, a chattel mortgage may allow tax deductions on interest and depreciation.
🏆 Pros & Cons of Horse Float Finance for Sole Traders
✅ Pros:
✔️ Allows self-employed borrowers to access finance
✔️ Secured loans offer better rates and lower repayments
✔️ Business finance may offer tax benefits for eligible purchases
⚠️ Cons:
❌ Some lenders require extra financial documentation
❌ May need a deposit or guarantor if business income is low
❌ Business loans may have stricter eligibility criteria
💳 Why a Finance Broker Can Help Sole Traders Get Approved
A finance broker can:
✅ Find lenders that offer finance for sole traders
✅ Secure a loan with flexible repayment options
✅ Assist in applying with low-doc or secured finance options
🔑 Final Thoughts
Sole traders can qualify for horse float finance, but lenders may require proof of business income through tax returns or bank statements. If you’re using the float for business, a chattel mortgage may offer tax advantages. A finance broker can help you navigate the process and secure the best loan terms.
🚀 A sole trader needing horse float finance? Get expert advice today!
DISCLAIMER
The information provided on this website is general in nature only and has been prepared without considering your financial needs, circumstances and objectives and should NOT be construed as financial, taxation or legal advice. For more information, get in touch with our experienced partner brokers today.
