John Pierre Saliba
Director, OverdraftMe | ACL 511092
Specialist business finance broker since 2017, $700M+ facilitated for Australian SMEs. MFAA Member, AFCA Member.
By John Pierre Saliba · April 2026 · OverdraftMe
Last reviewed: 30 October 2026 · Written by John Pierre Saliba, Director, OverdraftMe
The best business overdraft for tradies is an unsecured non-bank facility of roughly one month's turnover, approved on 6 months of bank statements rather than tax returns. Electricians, plumbers and builders use it to cover materials and wages through 30 to 90 day payment terms, with limits from $10,000 to $500,000 and decisions from 1 hour.
The best business overdraft for tradies is an unsecured non-bank facility sized around one month of turnover - approved on bank statements, not tax returns. The trades industry has a brutal cash flow cycle: you buy materials upfront, pay your workers weekly, and wait 30-90 days for the builder or client to pay your invoice. That gap between spending money and getting paid is where businesses go under - not because they're unprofitable, but because they run out of cash.
A business overdraft bridges that gap. Draw funds to cover materials and wages, repay when the invoice is paid. No loan-style fixed repayments (lender minimums may apply), no reapplication for each job.
Depends on your revenue. A sole trader electrician doing $15K/month can typically access $20,000-$50,000. A building company turning over $100K+/month could access $100,000-$250,000. All unsecured, no property required under $150K.
We recently funded a $55,000 overdraft for an electrical contractor and a $60,000 facility for a construction business - both approved and funded within 24 hours, no tax returns, no property security.
Browse our industry-specific pages: Electricians · Plumbers · Carpenters · Concreters · Civil Contractors · Landscapers
A Sydney plumbing contractor wins a $45,000 commercial fitout. Materials, a hired excavator and two months of wages for an apprentice and a subbie add up to $30,000 that leaves the account before the builder pays on 60-day terms. The contractor draws $30,000 from a $50,000 unsecured business overdraft at an indicative 18% p.a. and repays it the day the invoice clears.
| Item | Calculation | Cost |
|---|---|---|
| Interest on $30,000 for 60 days | $30,000 x 18% x 60/365 | about $890 |
| Line fee on the $50,000 limit for 60 days | $50,000 x 1% x 60/365 | about $80 |
| Total cost of bridging the job | about $970, deductible as a business expense | |
| Gross margin on the job | $45,000 invoice less $30,000 direct costs | $15,000 |
| Facility cost as a share of margin | $970 / $15,000 | about 6.5% |
Without the facility the alternatives are a 20% to 30% deposit the builder may refuse, a personal credit card at 25% or more that rarely covers $30,000, or turning the job down. The limit resets when the invoice is paid, so the next job is funded without reapplying.
Need the funds in days rather than weeks? See working capital loans for the fixed-term version of the same bridge.
Yes. Sole traders are assessed on the same basis as companies: an active ABN, 6 months of business bank statements, $6,000 or more a month in deposits and an Equifax score of 550 or above. Overdrafts typically need a 1-year ABN if you own property or 2 years if you do not, with strong candidates considered earlier and every file assessed case by case.
Not under $150,000. Non-bank lenders on the OverdraftMe panel assess the last 6 months of business bank statements, your ABN and a driver's licence. Above $150,000 some lenders ask for financial statements or security, so keep the facility sized to the real gap.
An overdraft suits the recurring gap between paying for materials and wages and getting paid 30 to 90 days later, because interest only runs on what you draw. A fixed-term business loan suits a one-off cost such as a ute, trailer or tool fitout. Many trades businesses run both, and the loan comparison is in our guide to a business overdraft versus a business loan.
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