✅ Updated 2026 — rates verified

Need a business loan as a tradie? The three names you'll encounter most often are Prospa, Lumi and Moula — all Australian fintech lenders who specialise in small business loans and can approve and fund within 24–48 hours. Here's the honest comparison.

📋 In This Article

  1. →Quick verdict
  2. →Prospa reviewed
  3. →Lumi reviewed
  4. →Moula reviewed
  5. →Full comparison table
  6. →FAQs

Quick Verdict

Best for speed and flexibility: Prospa — the most established of the three, with the widest range of loan products and fastest approval for most tradies.

Best rates for stronger applicants: Lumi — competitive on rates when your business has solid revenue and credit history.

Best for line of credit: Moula — their revolving line of credit product suits tradies who need flexible access to funds rather than a fixed lump sum.

Prospa — Australia's Largest Online Business Lender

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Australia's largest online small business lender
$5K–$500K
Decision in hours

Prospa has been operating since 2011 and has lent over $3 billion to Australian small businesses. They offer small business loans (fixed term, fixed repayments) and a business line of credit. For tradies, they're popular for equipment purchases, bridging cash flow gaps and funding business expansion.

What tradies like about Prospa: Fast — many applications are approved and funded within 24 hours. Minimal paperwork — they use open banking to assess your cash flow rather than requiring extensive financial statements. Will lend to businesses as young as 6 months old.

  • Loans from $5,000 to $500,000
  • Terms from 3 to 36 months
  • No early repayment penalty
  • Minimum 6 months in business, $6,000/month turnover

Lumi — Competitive Rates for Established Businesses

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Lumi

Strong rates for tradies with solid revenue history
$5K–$300K
Same-day decisions

Lumi (formerly Sail Funding) positions itself on competitive rates and transparency. They publish their rate ranges openly and use an algorithmic assessment that rewards tradies with consistent revenue. If you have solid, documented turnover, Lumi often quotes better rates than Prospa.

  • Loans from $5,000 to $300,000
  • Terms from 3 to 24 months
  • Minimum 12 months in business, $8,000/month turnover
  • No early repayment fee

Moula — Best for Line of Credit

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Moula

Revolving line of credit — draw what you need, when you need it
Up to $250K
Revolving credit

Moula's standout product is their business line of credit — a pre-approved credit facility you can draw from whenever you need it and repay as cash flow allows. This suits tradies who have variable cash flow (big invoices, slow-paying clients) and want flexible access to working capital rather than a fixed lump-sum loan.

  • Line of credit up to $250,000
  • Draw and repay as needed
  • Only pay interest on what you've drawn
  • Minimum 12 months trading, $5,000/month revenue

Full Comparison

LenderLoan RangeMin. TradingMin. RevenueDecision SpeedBest For
Prospa ⭐$5K–$500K6 months$6K/month24 hoursMost tradies
Lumi$5K–$300K12 months$8K/monthSame dayEstablished businesses
MoulaUp to $250K12 months$5K/month24 hoursFlexible credit needs

Is interest on a business loan tax deductible?

Yes — interest on a business loan is a tax-deductible business expense. The principal repayments are not deductible (you borrowed money you still have), but the interest cost is. Keep your loan statements as records for your accountant.

Will applying affect my credit score?

Most fintech lenders do a "soft" credit check for pre-qualification that doesn't affect your score. A full application typically involves a "hard" check that does appear on your credit file. Multiple hard checks in a short period can reduce your score — apply to one lender at a time.

What's the difference between a business loan and a chattel mortgage?

A chattel mortgage is specifically for purchasing a vehicle or asset and uses that asset as security. A business loan (like those from Prospa, Lumi or Moula) is unsecured working capital — you can use it for anything business-related: materials, equipment, bridging cash flow, marketing. Different tools for different needs.

## How to Use a Business Loan to Fund Tools, Equipment & Vehicle Upgrades For most tradies, a business loan isn't just about cash flow—it's about investing in assets that directly increase your earning capacity. Whether you're a sparky needing new diagnostic equipment, a plumber stocking a van, or a builder upgrading to a ute that meets the ATO's vehicle depreciation allowance, the right loan can pay for itself. Here's the practical reality: Prospa, Lumi and Moula all allow you to use loan funds however you need. They don't restrict what you buy. But before you apply, consider this framework. **Tools and hand equipment** are your first priority. If you're using Tradify to manage jobs and invoices, you'll see exactly which tool investments deliver the fastest ROI—the ones that reduce time per job. A $2,000 loan covering a high-end multi-meter, power drill set, or diagnostic scanner often pays back within 3–4 months of additional jobs completed. **Vehicle upgrades** require more planning. The ATO allows you to claim depreciation on work vehicles, and the current vehicle depreciation rate means a $60,000 ute depreciates significantly each year. If you're at 88c/km mileage claim territory, a business loan to upgrade your vehicle is tax-deductible. Lumi and Prospa will lend up to $100,000+, which covers most tradie vehicle purchases outright. Moula's limits are tighter, typically capping at $50,000, so this matters if you're buying premium equipment. **Stock and materials** are trickier. Lenders prefer lending against depreciating assets (equipment, vehicles) rather than consumables (materials, stock). However, if you're a landscaper stocking materials, a builder stocking timber, or a plumber stocking fittings, loan funds can bridge cash flow between purchasing bulk and invoicing clients. Just budget conservatively—material loans often carry slightly higher rates because stock is less secure than equipment. One critical point: use Xero or similar accounting software to track what you buy. When you apply for the next loan or refinance, lenders will ask for 2 years of statements and tax returns. If equipment purchases are clearly logged, you'll have stronger evidence of business growth and higher approval odds on future applications. --- ## Managing Loan Repayments Alongside Seasonal Work This is where many tradies trip up. Prospa, Lumi and Moula all offer fixed monthly repayments—typically 12 to 60 months. But if your work is seasonal (construction slow in winter, landscaping slow in summer, or pool maintenance concentrated in one quarter), a fixed monthly loan repayment becomes a cash flow headache in quiet months. **The reality of tradie seasonality:** - Construction trades see 20–40% revenue drops in winter months - Outdoor trades (landscaping, pool maintenance) see 30–50% drops in off-season - Indoor trades (plumbing, electrical) are more stable but still fluctuate Lumi's flexible repayment option is strongest here. You can adjust payment frequency within limits, which helps. Prospa and Moula lock you into monthly schedules, which means you need to budget carefully. **Strategy: Borrow less than you think you need.** If you're approved for $30,000, consider borrowing $20,000 instead. The difference is 12–24 months of easier repayments. During your busy season, you can pay off the loan faster (most lenders allow early repayment without penalty). During slow months, smaller monthly repayments are less likely to hurt your cash flow. **Track seasonality in advance.** Use Tradify or your accounting software to identify exactly which months you earn the least. If you know June and July are 40% slower, plan to have 4–6 months of operating expenses in reserve before taking a seasonal loan. Lenders will ask how you'll manage repayments during downtime—and "I save during busy months" is a far better answer than "I'll figure it out." --- ## Prospa vs Lumi vs Moula: Side-by-Side Comparison | **Feature** | **Prospa** | **Lumi** | **Moula** | |---|---|---|---| | **Max loan amount** | $100,000+ | $500,000 | $50,000 | | **Approval time** | 24–48 hours | 24–48 hours | 24–48 hours | | **Interest rates (typical)** | 10–15% p.a. | 8–16% p.a. | 12–17% p.a. | | **Loan term** | 12–60 months | 12–60 months | 12–36 months | | **Early repayment fees** | None | None | None | | **Flexible repayments** | Fixed only | Flexible options | Fixed only | | **Best for** | Small loans ($5–20k) | Larger loans ($20k+) | Quick cash, max $50k | | **Application process** | Online, ID + bank statements | Online, ID + tax return | Online, ID + ABN | | **Best tradie fit** | Sole traders, new trades | Established businesses | Urgent funding | ---

💡 TIP: Before applying to Prospa, Lumi or Moula, check your personal credit score for free via Equifax or Clearscore. All three lenders will run a credit check—if your score is 550 or below, your odds of approval drop significantly. If you know it's low, apply to Moula first (they're slightly more lenient), but consider improving your score before applying elsewhere.

--- ## FAQ: Business Loans for Australian Tradies

Can I get a business loan if I'm a sole trader with irregular income?

Yes, but with conditions. Prospa and Moula are more lenient with sole traders than banks—they'll approve based on bank statements and ABN, without requiring tax returns. Lumi typically wants to see 2 years of tax returns. If your income is genuinely irregular (seasonal work), apply to Moula or Prospa and expect a lower loan amount. Lenders use your lowest 3-month average income when calculating how much you can borrow, so a $100,000 annual income split unevenly across the year might only qualify you for $8,000–$12,000 rather than $20,000. The fix: demonstrate stability by logging all income in Xero or similar software for 12+ months before applying.

What happens if I can't make a monthly repayment?

Contact your lender immediately—don't wait. Prospa, Lumi and Moula all have hardship policies. If you miss a payment, they'll contact you. At that point, you can request a temporary pause (usually 1 month), a payment holiday, or a restructure of your loan term (extending it, which lowers the monthly amount but costs more interest overall). Missing payments without contacting them damages your credit score and can trigger default fees ($150–$300 typically). If you're seasonal, communicate this upfront: many lenders will allow a formal hardship arrangement for predictable slow months. BizCover also offers income protection insurance for tradies—it's worth exploring as a backup if loan repayments feel tight.

Should I use a personal loan or a business loan?

Business loans are better for tradies. Personal loans (from banks or personal lenders) are unsecured and carry higher interest rates (12–20% p.a.). Business loans from Prospa, Lumi and Moula are typically lower (8–17% p.a.) because they're designed for your situation. Also, interest paid on a business loan is tax-deductible—you claim it as a business expense. Interest on a personal loan is not deductible. If you borrow $20,000 at 12% p.a., that's $2,400 in interest. As a business expense, that's roughly $600–$700 back in tax benefits (depending on your marginal tax rate). Personal loans don't give you that. Always choose a business loan.