HOME TRADESMAN EQUIPMENT LOANS GUIDE

WHAT STARTING A HOME TRADE ACTUALLY COSTS

Let's get real about startup costs. This isn't "buy some tools and crack on" - this is what it takes to launch a legitimate, professional trade business from home.

The Van - Your Mobile Workshop (£12,000-£30,000)

Your van is your business. It's your workshop, your storage, your marketing billboard, and often your office. Skimp here and you'll regret it.

What you actually need:

• Small van (Berlingo, Connect, Caddy): £12,000-£18,000 used, £22,000-£28,000 new - perfect for electricians, plumbers, locksmiths
• Medium van (Transit Custom, Vivaro, Expert): £16,000-£24,000 used, £28,000-£38,000 new - ideal for carpenters, builders, heating engineers
• Large van (Transit, Sprinter): £20,000-£30,000 used - necessary for scaffolders, shop fitters, groundworkers
• Van fit-out (shelving, racking, inverter): £1,500-£4,000
• Sign writing and branding: £400-£800

Typical choice: 3-year-old Transit Custom (80k miles) at £20,000 + £2,500 fit-out = £22,500 total. Finance at £410/month over 66 months.

Professional Tool Sets (£3,000-£8,000)

You can't rock up to jobs with DIY tools from B&Q. Professional tools last longer, work faster, and look the part.

Electrician startup kit (£4,500-£6,000):

• Multifunction tester: £800-£1,200
• Power tools (SDS drill, angle grinder, multi-tool): £600-£900
• Hand tools (screwdrivers, strippers, crimpers): £400-£600
• Cable detection equipment: £300-£500
• Ladders, access equipment: £400-£600
• Storage boxes and organization: £200-£300

Plumber startup kit (£3,500-£5,000):

• Pipe cutters, benders, threading: £600-£900
• Power tools (combi drill, reciprocating saw): £500-£800
• Press-fit system and jaws: £1,200-£2,000
• Gas testing equipment: £400-£600
• Hand tools: £400-£600
• Access equipment: £400-£600

Carpenter startup kit (£4,000-£7,000):

• Circular saw, mitre saw, jigsaw: £800-£1,200
• Router and bits: £300-£500
• Cordless drill/driver combo: £400-£600
• Planer, sander, nail gun: £600-£900
• Hand tools (chisels, planes, squares): £500-£800
• Workbenches and clamps: £400-£600
• Storage and organization: £300-£500

Initial Stock and Materials (£2,000-£5,000)

You can't tell customers to wait three days while you order cable. You need stock.

• Electrician: Cable, conduit, boxes, switches, sockets - £2,500-£4,000
• Plumber: Pipe, fittings, valves, radiators - £3,000-£5,000
• Carpenter: Sheet materials, timber, fixings - £2,000-£3,500
• Painter: Paint, brushes, rollers, dustsheets - £1,500-£2,500

Insurance, Licensing, and Marketing (£2,000-£4,000 first year)

The boring but essential stuff that separates legitimate businesses from cowboys.

• Public liability insurance (£2M-£5M): £300-£800/year
• Professional indemnity: £200-£500/year
• Van insurance: £800-£1,500/year
• Tool insurance: £200-£400/year
• Competent person scheme registration: £400-£800/year
• Website and online presence: £500-£1,200 setup
• Initial marketing (Google Ads, Checkatrade, etc.): £500-£1,000

STARTUP PACKAGES BY TRADE

Here's what typical home-based startup packages look like across different trades. These are real numbers based on what we've financed for hundreds of tradesmen.

Electrician Home Startup (£28,000-£35,000)

• Van and fit-out: £20,000-£25,000
• Professional testing kit: £1,500-£2,000
• Power and hand tools: £2,000-£3,000
• Initial cable and materials stock: £3,000-£4,000
• Insurance and registration: £1,500-£2,000

Finance: £510-£640/month over 60-66 months

Most electricians are cash-positive within 4-6 weeks. Average job value £300-£800, typical monthly turnover £4,000-£6,000 after 3 months.

Plumber Home Startup (£25,000-£32,000)

• Van and fit-out: £18,000-£23,000
• Press-fit system and tools: £3,000-£4,500
• Gas testing equipment: £500-£800
• Initial stock (pipe, fittings, radiators): £3,000-£4,000
• Insurance and Gas Safe registration: £1,500-£2,000

Finance: £456-£584/month over 60-66 months

Plumbers typically hit full capacity fast. Emergency call-outs command premium rates (£80-£120/hour). Monthly turnover £4,500-£7,000 common after 2-3 months.

Carpenter/Joiner Home Startup (£30,000-£40,000)

• Van and fit-out: £22,000-£28,000
• Power tools and equipment: £4,000-£6,000
• Hand tools and measuring: £1,500-£2,500
• Initial materials stock: £2,000-£3,000
• Insurance and marketing: £1,500-£2,000

Finance: £547-£730/month over 60-66 months

Carpentry has strong margins. Kitchen fitting, bespoke joinery, property refurbs - jobs range £1,500-£8,000. Monthly turnover £5,000-£9,000 achievable within 6 months.

Part-Time Trade Startup (£12,000-£18,000)

Not ready to go full-time? Start evenings and weekends while keeping your day job. Lower investment, lower risk.

• Van (smaller/older): £8,000-£12,000
• Essential tools only: £2,500-£4,000
• Minimal stock: £1,000-£1,500
• Basic insurance: £500-£1,000

Finance: £240-£350/month over 48-60 months

Perfect for testing the waters. Do 6-12 months part-time, build up customers and cash reserves, then scale up when you're ready to quit your job.

HOME TRADESMAN FINANCE OPTIONS

Right, you know what you need and what it costs. Now let's talk about how to finance it without remortgaging your house or maxing out credit cards.

Startup Business Loans (Unsecured)

Unsecured startup loans put cash in your bank account to buy whatever you need. No assets used as security - approval based on your qualifications, experience, and business plan.

Typical terms:

• Amount: £5,000-£25,000
• Term: 24-60 months
• APR: 9.9-17.9% (startups pay more)
• Requirements: Fully qualified in your trade, business plan, some savings

Example: £15,000 over 48 months at 12.9% APR = £401/month. Use it for tools and stock, finance van separately.

Van Finance Packages

Most popular option. Finance the van (your biggest cost) separately through hire purchase or PCP.

Hire Purchase (HP):

• Deposit: 10-30% typical
• Term: 36-60 months
• APR: 6.9-12.9%
• You own the van at the end
• Example: £20,000 van, £2,000 deposit, 60 months at 9.9% = £380/month

Personal Contract Purchase (PCP):

• Lower monthly payments (30-40% less than HP)
• Balloon payment at end or hand it back
• Good if you want to upgrade every 3-4 years
• Example: £20,000 van, £2,000 deposit, 48 months = £280/month + £6,000 balloon

Complete Equipment Bundles

Smart way to finance everything together - van, tools, stock, insurance - in one monthly payment. Often gets better rates than piecing it together.

How it works:

• You provide detailed equipment list and quotes
• We finance 70-90% of total package (you fund 10-30%)
• Single monthly payment covers everything
• Terms: 48-72 months typical
• APR: 7.9-13.9% depending on credit and experience

Example: £32,000 complete electrician package, £3,200 deposit (10%), finance £28,800 at 9.9% over 66 months = £540/month.

Staged Funding - Start Small, Grow Smart

Not everyone needs £30,000 on day one. Start with essentials, prove yourself, scale up.

Stage 1 (£10-15k): Basic van, essential tools - get trading

Stage 2 (£8-12k, after 6-12 months): Better van or upgrade tools

Stage 3 (£5-10k, after 18-24 months): Specialist equipment, second van, employee kit

Lower risk, easier approvals, but slightly higher total interest cost. Still sensible for risk-averse tradesmen.

WORK FROM HOME VS MOBILE-ONLY

Two business models, very different setups. Choose wrong and you'll spend money you don't need to, or miss opportunities you should take.

Mobile-Only Setup (Most Common)

You work from your van, all tools and stock travel with you. Home is just for admin and sleep.

Best for: Electricians, plumbers, locksmiths, mobile mechanics, heating engineers - trades where you go to the customer

Investment: £18,000-£32,000

• Well-fitted van with storage: £20,000-£25,000
• Complete tool set: £3,000-£5,000
• Stock and materials: £2,000-£3,500
• Insurance and setup: £1,500-£2,500

Pros: Lower startup cost, no workshop rent, work anywhere, faster ROI

Cons: Limited by van space, weather-dependent, harder to scale

Home Workshop Setup

Garage, shed, or outbuilding converted to proper workshop. You fabricate/prepare at home, install on-site.

Best for: Carpenters, furniture makers, metalworkers, upholsterers - trades where you make things then install them

Investment: £30,000-£50,000

• Workshop equipment (saws, benches, machines): £10,000-£20,000
• Van for deliveries: £15,000-£22,000
• Hand tools and portable kit: £3,000-£5,000
• Stock and materials: £3,000-£5,000
• Workshop setup (power, lighting, extraction): £2,000-£4,000

Pros: Higher quality work, weather-proof, easier to employ staff, higher profit margins

Cons: Higher startup costs, planning permission sometimes needed, longer to recoup investment

BAD CREDIT OPTIONS FOR NEW TRADESMEN

Past financial mistakes shouldn't stop you building a better future. Here's how startups with imperfect credit get funded.

What "Bad Credit" Actually Means to Lenders

• Missed payments: 1-2 late payments won't kill you. Pattern of missed payments is problematic
• Defaults: Over 3 years old - usually okay. Under 3 years - harder but possible
• CCJs: Under £2,000 and satisfied - manageable. Large or unsatisfied - very difficult
• Bankruptcy: Discharged over 3 years ago - possible. Recent bankruptcy - extremely difficult
• IVAs: Completed IVA - similar to bankruptcy. Active IVA - very few lenders

Strategies That Work

1. Larger Deposit (25-40%)

Put down more cash, reduce lender risk. Finance £18,000 instead of £30,000, and suddenly bad credit matters less.

2. Start Smaller

Finance £12,000 not £25,000. Prove yourself for 12 months, then refinance or add equipment. Your good payment history on the first loan helps approval for the second.

3. Asset-Backed Finance

Van finance is easier than unsecured loans because the van is security. If you don't pay, they take the van back. Less risk = more approvals.

4. Specialist Bad Credit Lenders

They exist, and we work with them. Expect 14.9-19.9% APR, but it's finance when banks say no. Pay on time for 18 months, then refinance to a better rate.

Example: £15,000 startup package with CCJ from 2 years ago. £3,000 deposit (20%), finance £12,000 over 48 months at 16.9% APR = £324/month. Higher rate, but gets you trading.

WHAT LENDERS ACTUALLY LOOK AT FOR STARTUPS

No trading history makes lenders nervous. Here's what they check instead:

1. Qualifications and Experience

Fully qualified electrician (18th Edition, 2391) is lower risk than someone who "knows a bit about electrics." Show your certificates.

2. Industry Experience

Worked for someone else for 5 years? Lower risk than fresh out of college. Employment history matters.

3. Personal Credit

No business credit yet, so they check personal. Clean credit makes life easy. Imperfect credit is manageable. Terrible credit needs bigger deposits and specialist lenders.

4. Personal Financial Stability

6 months personal bank statements. They're checking: Do you manage money sensibly? Do you have some savings? Are you already maxed out on credit?

5. Business Plan (Simple One)

Not a 40-page document. Just: What will you do? Who are your customers? How will you find work? What will you charge? How much will you earn?

Two pages is fine. They want to see you've thought it through, not hired a consultant to write fiction.

6. Deposit and Skin in the Game

Putting £3,000-£5,000 of your own money in shows commitment. Asking to finance 100% with zero risk to yourself - that's a red flag.

REAL MONTHLY PAYMENT EXAMPLES

Let's get into actual numbers. These are based on typical APRs for startup trade finance.

Small Packages (Tools + Stock):

• £8,000 over 48 months at 11.9% = £211/month
• £12,000 over 60 months at 11.9% = £267/month
• £15,000 over 60 months at 10.9% = £328/month

Medium Packages (Van + Tools):

• £22,000 over 60 months at 9.9% = £467/month
• £28,000 over 66 months at 9.4% = £510/month
• £32,000 over 66 months at 9.4% = £583/month

Large Packages (Complete Setup):

• £35,000 over 66 months at 8.9% = £640/month
• £40,000 over 72 months at 8.4% = £656/month

Remember: These payments should be covered by 1-2 jobs per month. If you're charging £300-£600 per job and doing 15-20 jobs monthly, £500/month finance payment is manageable from week one.

HOW TO APPLY (THE SIMPLE VERSION)

Step 1: Work out what you need (30 minutes)

Make a list. Van, tools, stock, insurance. Get rough quotes. Don't need exact figures, ballpark is fine.

Step 2: Contact us (2 minutes)

Phone, email, or contact form. Tell us your trade, what you need, and roughly what it costs.

Step 3: Quick fact-find call (15 minutes)

We'll ask about your qualifications, experience, what work you've got lined up, and your financial situation. No judgment.

Step 4: Submit documents

• Photo ID
• 3-6 months personal bank statements
• Proof of qualifications
• Equipment quotes/invoices
• Simple business plan (we'll help if needed)

Step 5: Get decision (24-48 hours)

We'll tell you what's approved, the rate, monthly payment, and total cost. No surprises.

Step 6: Sign and get your kit

Electronic paperwork, 10 minutes on your phone. We pay suppliers directly. You're trading within days.

COMMON STARTUP FINANCE QUESTIONS

How much deposit do I need?

10-30% typical. Good credit + strong experience = 10%. Imperfect credit or brand new = 20-30%. Some van deals need 15-20% minimum.

Can I finance everything or just the van?

Both. You can finance just the van, or bundle van + tools + stock in one package. Package deals often get slightly better rates.

What if I'm still employed full-time?

Perfect. Having income while starting up actually helps approval. Lenders like seeing you're not betting everything on an untested business.

Do I need to be registered as a limited company?

No. Sole trader is fine for startup finance. Limited company helps with bigger amounts (£40k+) but isn't mandatory.

What if I change my mind about what equipment I need?

Before approval - easy, just update your list. After approval but before purchase - usually fine, similar value/type. After purchase - you're committed to that finance agreement.

WHY HOME TRADESMEN CHOOSE US

• We know trade startups: We've financed 2,500+ tradesmen launching from home
• Complete packages: Van, tools, stock, insurance - everything in one deal
• Fast decisions: Most startup applications decided within 48 hours
• Realistic requirements: We understand startups don't have 2 years trading history
• Bad credit considered: Past doesn't define your future
• Straightforward process: No 40-page forms or complicated presentations
• Real support: We help with business plans, equipment lists, supplier recommendations

Check out our trade-specific guides: electrician finance, plumber finance, carpenter finance, and metalwork equipment finance.

READY TO START YOUR HOME TRADE BUSINESS?

You've got the qualifications. You've got the experience. You just need the equipment. Let's make it happen.

Quick online application: Click here to apply now

Speak to a startup specialist: Call 020 3778 0274

We're open Monday-Friday 9am-6pm, Saturday 9am-1pm. Real people who've helped thousands of tradesmen just like you. No corporate rubbish, just straight answers.

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Related reading: Check out our guides on heating engineer finance, locksmith equipment funding, and woodworking equipment finance. All written by people who actually understand UK trade businesses.