Free guide to starting a UK plant hire companyUpdated October 2026 · Browse all guides

Legal, insurance and safety

Trade accounts and customer onboarding

How to set up plant hire trade accounts: what the application should ask, the checks to run, sensible limits and terms, and a fast onboarding process.

Guide specPHSUG-64
Read time6 min
LevelBeginner
Form sections9
UpdatedOct 2026

Key takeaways

  • A short, complete application form prevents most bad debt.
  • Check who you're dealing with: company, directors, address and trading history.
  • Start with a modest limit and raise it as the customer pays on time.
  • Make onboarding quick; slow account opening loses good customers.

Why onboarding matters

A trade account is credit: you hand over expensive machines and wait to be paid. The application is your one chance to check the customer and get their agreement to your terms before you're exposed.

The application form

SectionWhat to ask for
BusinessLegal name, company number, trading name, registered and trading addresses, VAT number
ContactsAccounts contact, site or ordering contacts, phone and email
DirectorsNames and home addresses (for guarantees and credit checks)
Trading historyYears trading, main types of work, typical hire needs
ReferencesTrade references, ideally other hire firms
BankBank name for remittance matching (not used to debit without a mandate)
OrderingWho can place orders; purchase order requirements
ConsentsCredit check consent, acceptance of your hire terms, privacy notice
GuaranteePersonal guarantee for new or small companies, where you require one

Checks to run

  1. 01

    Companies House

    Status, filed accounts, directors, charges.

  2. 02

    Credit report

    Score, recommended limit, county court judgments.

  3. 03

    References

    A quick call to one or two trade referees.

  4. 04

    Site and address

    Does the business exist where it says?

  5. 05

    Insurance

    For larger hires, evidence of hired-in plant cover.

Limits and terms

  • Start with a limit around one or two weeks of typical hire.
  • Standard terms: 30 days from invoice, or end of month following, stated clearly.
  • Put account terms and your hire terms together for signature.
  • Record the limit in your booking system so it can warn when it's reached.

A smooth onboarding flow

  1. 01

    Online form

    Short, mobile-friendly, with e-signature.

  2. 02

    Checks within a day

    Decide quickly and tell them.

  3. 03

    Welcome message

    Account number, how to order, who to call, out-of-hours number.

  4. 04

    First hire on card if needed

    While checks complete.

  5. 05

    Follow-up after first hire

    Ask how it went.

Reviewing accounts

  • Review limits at least yearly and before raising one.
  • Watch payment patterns monthly; see bad debt.
  • Close dormant accounts after a long gap, or re-check before reuse.
  • Keep customer data secure and only as long as needed.

FAQs

Common questions

What should a plant hire trade account application include?
Business and company details, contacts, directors, trading history, references, ordering rules, credit check consent, acceptance of your hire terms and, where required, a personal guarantee.
What credit limit should a new trade account get?
A modest limit, often around one or two weeks of typical hire, increased as the customer pays on time.
Do I need a personal guarantee from directors?
It's common for new or small limited companies, because the company may have few assets. Take legal advice on the wording.

This guide is general information for people setting up a plant hire business in the UK. It is not legal, tax, insurance or financial advice. Rules and thresholds change, so check current guidance on GOV.UK and take advice from an accountant, solicitor or broker before acting.