WOODWORKING EQUIPMENT FINANCE OPTIONS

WHAT WOODWORKING EQUIPMENT ACTUALLY COSTS

Let's start with reality. Professional woodworking equipment isn't B&Q DIY kit. You're looking at industrial-grade machinery that'll last 15-20 years if treated right.

Essential Workshop Machinery (£10,000-£25,000)

If you're setting up a proper joinery workshop or upgrading from site-only work, here's your baseline investment:

• Table Saw (£2,000-£5,000) - Industrial cabinet saw with scoring blade. Felder, SCM, or Altendorf if you're serious.
• Planer/Thicknesser (£1,500-£4,000) - Combined units save space. Hammer, Metabo, or DeWalt for reliability.
• Panel Saw (£3,000-£8,000) - Vertical panel saws for sheet materials. Game-changer for kitchen fitters and shop fitters.
• Bandsaw (£800-£2,500) - Essential for curved work and resawing.
• Mortiser (£600-£1,500) - Dedicated mortising machine beats hand chiseling every time.
• Dust Extraction (£1,500-£4,000) - Not optional. COSHH regulations + keeping your lungs functional.

Total basic workshop setup: £10,000-£25,000

Finance this at £206-£515/month over 60 months and you've got professional-grade equipment paying for itself through better work quality and faster turnaround.

CNC Equipment (£25,000-£80,000)

CNC routers and machining centers are where joinery businesses scale up. They're expensive, but they transform what you can produce.

Entry-level CNC router (£25,000-£40,000):

• 3-axis router with vacuum table
• Working area 2500mm x 1250mm (standard sheet size)
• CAD/CAM software package
• Training and installation

Finance at £515-£825/month over 60 months. One fitted kitchen per month covers your payment with profit left over.

Professional CNC machining center (£50,000-£80,000):

• 5-axis capability for complex joinery
• Automatic tool changers
• Nesting software for material optimization
• Edge banding integration

This is commercial joinery territory. Finance at £1,030-£1,650/month over 60 months. You'll need £15k-£20k monthly turnover to justify it, but if you're there, this equipment doubles your capacity.

Hand Tools & Power Tools (£3,000-£8,000)

Site carpenters and mobile joiners need quality cordless kit, hand tools, and safety equipment. Festool, Makita, and Milwaukee dominate for good reason.

Professional site kit (£5,000-£6,000):

• Full 18V cordless platform (drill, impact driver, circular saw, jigsaw, multi-tool)
• Track saw system with rails
• Planer, router, biscuit jointer
• Dust extractor (portable)
• Hand tool set (quality chisels, planes, saws)
• Laser level and measuring equipment

Finance at £103-£124/month over 60 months. That's two day's work per month covering tools that'll earn you money for years.

FINANCE OPTIONS FOR WOODWORKING EQUIPMENT

Right, you know what equipment costs. Now let's talk about how to actually finance it without selling a kidney.

Equipment Hire Purchase - The Standard Choice

Equipment HP is the most common way to finance woodworking machinery. It's straightforward, predictable, and you own the kit at the end.

How it works:

• Choose your equipment (new or used, under 5 years old)
• Finance provider pays supplier directly
• You pay fixed monthly installments (24-60 months)
• You own equipment after final payment

Typical terms:

• Loan amount: £5,000-£100,000
• Deposit: 0-30% (10-20% is standard)
• APR: 6.9-14.9% depending on credit and trading history
• Term: 36-60 months most common

Example: £30,000 workshop equipment package

• Deposit: £3,000 (10%)
• Amount financed: £27,000
• Term: 60 months
• APR: 8.9%
• Monthly payment: £560
• Total repayable: £36,600

Asset Finance Leasing - Tax-Efficient Option

Finance leases are popular with established joinery businesses because monthly payments are fully tax-deductible as business expenses.

How it differs from HP:

• Equipment stays owned by finance company throughout term
• Lower monthly payments (typically 20-30% less than HP)
• 100% tax-deductible payments
• At end, you can buy equipment for nominal fee, return it, or upgrade

Best for: VAT-registered businesses turning over £50k+ who want maximum tax efficiency and plan to upgrade equipment every 3-5 years.

Business Loans - Flexibility & Ownership

Unsecured business loans give you cash to buy equipment outright. You own it from day one, no finance company paperwork with suppliers.

When this works well:

• Buying second-hand equipment from private sellers
• Multiple small purchases (hand tools, consumables, mixed kit)
• Negotiating cash discounts with suppliers
• Building business credit history

Typical terms:

• £5,000-£50,000 available
• 12-60 month terms
• 9-18% APR (higher than secured finance)
• Decision in 24-48 hours
• Cash in account within 3-5 days

Refinancing Existing Equipment

Already own equipment? You can release equity through refinancing to fund new machinery or working capital.

Example scenario: You bought a £20,000 panel saw 2 years ago, paid cash. Current market value £14,000. You can refinance it to release £10,000-£12,000 cash for other equipment.

WHAT FINANCE COMPANIES ACTUALLY CHECK

Woodworking equipment finance isn't mysterious. Here's exactly what lenders look at:

1. Trading History

Minimum required: 6-12 months for most specialist lenders (traditional banks want 2-3 years - ignore them).

If you've been trading less than 12 months but have contracts or purchase orders, tell us. Some lenders will still help with a higher deposit.

2. Cash Flow & Affordability

Can you afford the monthly payment? Lenders want to see consistent income covering 2-3x the monthly finance payment.

Reality check: If you're financing £30,000 (£620/month), lenders want to see £1,500-£2,000/month minimum income after other business expenses.

3. Credit History

Personal and business credit gets checked. One or two missed payments won't destroy your chances, but active CCJs or bankruptcies make things difficult.

Bad credit? We work with specialist lenders who focus on current business performance rather than past credit issues. Rates are 2-4% higher, but funding's still possible.

4. Equipment Value & Age

Lenders prefer equipment that holds value. Industrial woodworking machinery from reputable brands (Felder, SCM, Hammer, Festool) is easier to finance than unknown Chinese imports.

New equipment: Finance up to 100% (sometimes 105% including installation)

Used equipment: Up to 80% of value, maximum 5-7 years old typically

THE APPLICATION PROCESS (NO NONSENSE VERSION)

Forget 40-page application forms. Here's the actual process:

Step 1: Initial enquiry (5 minutes)

Tell us what equipment you're looking at, how much it costs, and what you do. Phone call or online form - whatever works for you.

Step 2: Quick fact-find (10-15 minutes)

We'll ask about your business, trading history, and current finances. No judgment, just facts.

Step 3: Documentation (15 minutes)

Send us:

• 3-6 months business bank statements
• Photo ID (passport or driving license)
• Equipment quote or invoice
• Latest accounts (if you have them - not always required)

Step 4: Decision (4-24 hours)

We submit to lenders. Most applications get initial decision within one working day.

Step 5: Paperwork (30 minutes)

Digital signature on your phone or laptop. Done in minutes.

Step 6: Payment & delivery

Finance company pays supplier directly. You arrange delivery or collection. Start making sawdust.

COMMON QUESTIONS FROM WOODWORKERS

Can I finance Festool and hand tools?

Yes, but minimum finance amount is usually £3,000-£5,000. Below that, most lenders won't bother. If you need £2,000 of tools, consider a business credit card or small business loan instead.

What if I want to buy from a private seller (used equipment)?

Business loans work better here. Equipment finance usually requires VAT invoices and registered suppliers. A business loan gives you cash to buy from anywhere.

Can I finance workshop renovation alongside equipment?

Sometimes. If it's directly related (electrical upgrades for machinery, dust extraction installation), it can be included. General building work won't qualify for equipment finance - you'd need a separate business loan.

Should I finance or save up?

Depends on opportunity cost. If you're turning away work because you lack equipment, finance it now. If you're comfortably busy and equipment would just make life easier, saving might make sense.

Quick math: £30,000 CNC router financed at £620/month. If it helps you win two extra £3,000 jobs per month, you're £5,380/month better off (£64,560 annually). Waiting 18 months to save up costs you £96,840 in missed revenue.

What about maintenance and consumables?

Finance covers equipment purchase only. Ongoing costs (blades, cutters, dust bags, servicing) come from your operating budget. Factor £50-£200/month for consumables depending on equipment.

WHY CARPENTERS & JOINERS CHOOSE US

We're not a bank. We're a specialist broker who understands woodworking and joinery businesses.

• We know the industry: Financed everything from Festool packages to industrial CNC machining centers
• Quick decisions: 80% of applications get initial approval within 24 hours
• Realistic requirements: 6-12 months trading considered (not 3 years)
• Flexible structures: Seasonal payment plans for joiners with variable income
• Bad credit specialists: Past mistakes don't define your future

Over 1,200 carpenters and joiners have financed equipment through us. Check our carpenter finance page or shop fitter finance options for trade-specific information.

READY TO UPGRADE YOUR WORKSHOP?

Stop hiring equipment. Stop turning down work because you lack capability. Finance your woodworking equipment and start growing.

Get your quote online: Click here to apply now

Speak to a specialist: 020 3778 0274

Open Monday-Friday 9am-6pm, Saturday 9am-1pm. Real people who understand woodworking, not script-reading call center staff.

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