The Complete Guide to Equipment Finance for Tradesmen in 2024

What is Equipment Finance?

Equipment finance is a type of business funding that allows tradesmen to acquire the tools, machinery, and vehicles they need without paying the full cost upfront. Instead of depleting your working capital, you spread the cost over a set period through manageable monthly payments.

For tradesmen, this can mean the difference between taking on larger contracts and missing out on growth opportunities. Whether you need a new van, power tools, specialist machinery, or safety equipment, equipment finance makes it accessible.

Types of Equipment Finance Available

Hire Purchase (HP): You pay monthly installments and own the equipment outright at the end of the agreement. This is popular for vans and larger machinery.

Finance Lease: You rent the equipment for a fixed period. At the end, you can return it, extend the lease, or purchase at a reduced rate.

Operating Lease: Similar to a finance lease but typically shorter term. Ideal for equipment that becomes outdated quickly.

Asset Refinancing: If you already own equipment, you can use it as security to release cash for other business needs.

How to Get the Best Rates

Getting the best equipment finance rates requires preparation. Start by knowing your credit score and addressing any issues. Gather your recent business accounts or tax returns. Get quotes from multiple lenders - don't just accept the first offer.

Consider using a specialist broker like Tradesman Finance. We have relationships with over 50 lenders and can find deals not available on the high street. Our service is free to you, as we're paid by the lender.