Starting out
Start-up funding and loans for a plant hire business
The ways to fund a plant hire start-up: savings, asset finance, Start Up Loans, bank lending and investors, and what each lender wants to see.
Key takeaways
- Most hire start-ups combine savings, asset finance for machines and working capital from another source.
- Asset finance funds machines against their own value.
- The government-backed Start Up Loans scheme lends up to £25,000 at a fixed 7.5% over 1–5 years, with free mentoring.
- Lenders want a plan, a forecast, your experience and some of your own money in the business.
Funding options
| Source | Good for | Watch for |
|---|---|---|
| Own savings | Deposits, set-up, working capital | Keep a personal buffer |
| Asset finance (HP, lease) | Machines and vehicles | Deposits and upfront VAT |
| Start Up Loans | Working capital, set-up | Personal loan; you repay it personally |
| Bank loan or overdraft | Working capital | Security and guarantees |
| Family or investors | Equity or loans | Clear written agreements |
| Grants | Specific projects | Rarely fund plant directly; check local schemes |
Asset finance
Hire purchase and leasing fund the machines themselves, secured on their value. New businesses can often get it with a larger deposit or personal guarantee. See finance options and lease, HP or buy.
Start Up Loans
The government-backed Start Up Loans scheme offers personal loans for business use of up to £25,000 at a fixed 7.5% a year over one to five years, for new businesses or those trading for less than five years. First-time borrowers get 12 months of free mentoring. Check the current terms and eligibility on the scheme's website.
Bank lending
- Overdrafts and short loans for working capital.
- Banks usually want trading history, security or guarantees.
- A business bank relationship helps later borrowing.
Investors and partners
- A partner or investor can bring capital and skills.
- Agree ownership, roles, decisions and exit in a shareholders' or partnership agreement.
- Family loans should be written down too.
What lenders want
- 01
A plan
Use the business plan template.
- 02
A forecast
12 months, with realistic utilisation; see startup budget.
- 03
Experience
Your background in plant or construction.
- 04
Own money in
A deposit shows commitment.
- 05
Clean credit
Check your personal and business credit files.
FAQs
Common questions
How can I fund a plant hire start-up?
Can I get a Start Up Loan for plant hire?
Are there grants for plant hire businesses?
Keep going
Related guides
Finance
Hire purchase, leases and refinance for new hire firms.
Read guide →
Plant hire business plan template and example
Template and worked example lenders and partners expect.
Read guide →
Costs
Machines, transport, yard, insurance and the cash you need upfront.
Read guide →
Lease, hire purchase or buy outright?
Cash, HP or lease compared, with a calculator.
Read guide →
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.