Starting a new trade business? Discover the finance options available to help you get the equipment and vehicles you need, even without an established trading history.
Key Takeaways
- Specialist lenders work with startups
- Asset-backed finance is easier to obtain
- Government startup loans available up to £25k
- Personal guarantees can help approval
- Build credit with smaller agreements first
The Challenge for New Tradesmen
Starting a trade business is exciting, but getting finance can be challenging when you don't have an established trading history. Many lenders want to see 2-3 years of accounts before approving business finance.
However, specialist lenders understand that everyone has to start somewhere. If you have relevant trade experience and a solid business plan, options are available.
Finance Options for Startups
Personal guarantees: Many lenders will approve startup finance if you're willing to personally guarantee the loan.
Asset-backed lending: If you're financing specific equipment, the asset itself provides security, making lenders more comfortable.
Start-up loans: Government-backed startup loans of up to £25,000 are available to new businesses.
Invoice finance: Once you start trading, you can unlock cash from unpaid invoices even without a long trading history.
Building Credit for Your Business
Start small and build up. Taking out smaller finance agreements and paying them perfectly builds your business credit profile.
Register for a business credit profile with agencies like Experian Business. Pay suppliers and bills on time. Keep personal and business finances separate.
About the Author
Tradesman Finance Team
Finance SpecialistsOur team of finance specialists has over 50 years of combined experience helping UK tradesmen access the funding they need. We work exclusively with trade businesses, giving us deep insight into the unique challenges and opportunities in the sector. From electricians to builders, plumbers to roofers, we understand your industry and speak your language.