Finance for a new business: vans, machines and equipment
Yes, a new business can get finance. New business finance lets a new business or start up buy a van, a digger, machinery or equipment. You pay it back in regular agreed repayments. The lender looks most at the people behind the business.
Many well known lenders want 12 or 24 months of trading history. Some of our 120+ lenders actively look for new businesses. Our office is in Scotland, and we work across the UK. From £25,000 borrowed, up to £750,000. No fee to apply. If your finance goes ahead, the lender pays us a commission.
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Written by Martin Mackenzie, Sales Director. Checked .
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New business finance. In this video we are going to discuss new business finance. Can a new business get finance? Yes, it can. It can buy a van, a digger, machinery or equipment. Many well known lenders want 12 or 24 months of trading. We can ask over 120 lenders. Some look for new businesses. Hire purchase means regular agreed repayments. You have the option to own it at the end. A lease means regular agreed rentals. The lender keeps ownership. Lenders look at the people first. What you have done before. Where the work comes from, and what you buy. A courier needs a van. A groundworks firm needs a digger. A baker needs ovens. Lenders see when an asset fits the work. A haulier, bus or coach firm needs a licence to run. Or proof that you have applied for one. Most lenders ask a company director for a personal guarantee. That means the director agrees to pay if the company cannot. Owning a home makes it stronger. But you do not need one. Most lenders look for a deposit of 5 to 10%. Some take none, when the people behind it are strong. No deposit saved? A grant can pay part of it. Or a business loan. A bank may say no to a brand new business. A dealer has only a few lenders. Their no is not every lender's. Do not settle for an older one with cash. Ask us first. A business plan helps, but you may not need one. Speak to us before you pay for one. Credit not perfect? Tell us first. We explain it to the lender. Open a business bank account early. Repayments come from it. Our page has a free checklist to tick and print. Apply online with Donnie, our in house AI agent, 24/7. A person in our team then gets back to you. Or call our team on 01463 652 653. Thanks for watching!
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What do hire purchase, lease and broker mean?
Hire purchase: you make regular agreed repayments, with the option to own it at the end. A lease: you pay regular agreed rentals, and the lender keeps ownership. A broker: us, asking lenders for you. Trading history: how long you have been trading.
What do lenders look at for new business finance?
Lenders look at the people first: your experience, where the work comes from, and what you want to buy. Knowing exactly what you want helps most.
| Example industry | What lenders understand | What to have ready |
|---|---|---|
| Courier van, for a big parcel firm | A courier needs a van. | Likely income and where it comes from. A parcel firm agreement helps. The van, seller, price, deposit. |
| Groundworks digger (excavator) or dumper | Everyday work for machine lenders. Hiring one pays off someone else's machine. | Years in the trade, and who for. Work lined up. The machine: make, model, age. Deposit. |
| Joiner or builder van | A builder needs a van. | Experience. Where the work comes from. The van, seller, deposit. |
| Taxi car | A taxi driver needs a car. | The car, likely income, deposit. |
| Haulier tractor unit (the truck that pulls a trailer) | A haulier needs one. | Experience. Work or a contract lined up. The unit and deposit. Your operator's licence, or proof you have applied. |
| Bus or coach operator | An operator needs the vehicle. | Experience. Work or a contract lined up. The vehicle details. Your operator's licence, or proof you have applied. |
| Manufacturing: a bakery's industrial ovens | A bakery needs ovens and equipment to make its goods. | Quotes for the equipment. Experience. Any contracts, if you sell to other businesses. Premises details, if you sell to the public. |
| Dental or vet surgery | A surgery needs special equipment, and often building work. | Quotes for the equipment and work. Experience. Premises details. |
| Restaurant or hotel | Kitchen equipment and fittings help it open. | Quotes. Experience. Premises details. |
| Shop or office | Fittings and equipment help it open. | Quotes. Experience. Premises details. |
A business plan is always helpful to have. It may not be essential in every case. If you are unsure, speak to us first.
What is a director's personal guarantee, and does it matter if I rent?
A director's personal guarantee is their promise to pay if the company cannot. Most lenders ask a new company's director for one.
Owning your home makes the guarantee stronger. But you do not need to own a home. A director who rents is not usually asked for a bigger deposit.
How much deposit does a new business need?
Most lenders look for 5 to 10%. Some take 0%, even for a new business, when the people behind it are strong. Three ways round a missing deposit:
- A start-up grant can pay part of it. Tell us about it.
- A business loan can pay the deposit, with asset finance for the rest. Owning a home opens more loan lenders.
- Your own money, a grant and a loan can go together. We put the package to the lenders.
Why did the bank or the dealer say no?
Banks often have strict rules, and a brand new business does not fit them yet.
A dealer has only a few lenders, and many are not set up for a new business. Their no is not the whole market.
The trap: some take that no, then buy an older machine with cash. They could have had the one they wanted. Ask us first.
Do I need a business plan?
Not always. A business plan is always helpful to have, but it may not be essential. Speak to us before you pay for one.
Often a one page summary is enough. Your experience, what you buy, how you pay, where the work comes from.
Where a fuller plan helps, a good accountant can make it with you. Our free business plan template can help.
What if my credit is not perfect?
Tell us up front, and your explanation goes to the lender before it decides. Bad news with no explanation is often just declined.
Late payments, a CCJ or decree, an IVA or trust deed, or a bankruptcy can count against you. A CCJ or decree is a court order to pay a debt. An IVA or trust deed is a formal plan to pay debts back. Tell us what happened and what changed. We never promise approval.
Does it help to be a limited company?
Yes. It is easier for us to arrange finance for a limited company. A sole trader can still apply, from £25,000 borrowed. On setting up a company, ask your accountant.
How does it work, and how long does it take?
A person in our team gets back to you within a day.
- Apply through our in house AI agent, Donnie, or call us.
- Our team talks it through with you. You sign a consent form.
- We run a light credit check on the business, often called a soft search.
- We send your case to the lenders that suit it. Each does its own checks.
- A lender approves. We show you the figures, and you decide.
- You sign, often online, and the lender pays the seller.
Open a business bank account early. The repayments come from it by direct debit, so the finance cannot pay out without one.
The fastest was the same day. A hard case can take weeks.
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We love helping new businesses start out. We have been there ourselves, starting our own.
Questions people ask about finance for a new business
Is it hard to get finance for a new business?
Harder than for an older business, but often possible. We know which lenders take new businesses.
Can I get finance with no trading history?
Yes, with some lenders. Many want 12 or 24 months, but some of ours actively look to support new businesses.
Can a start up get asset finance?
Yes, on hire purchase or a lease. Most lenders ask for a director's personal guarantee.
Can I get finance for a used van or machine?
Yes. Vans up to about 7 years old at the start are common. Machines depend on age and condition.
The bank declined my new business. What now?
A bank's no is one lender's answer. Tell us, and we ask the lenders that look for new businesses.
How much can a new business borrow?
We work with small and medium-sized businesses (SMEs) across the UK. From £25,000 borrowed, up to £750,000.
Apply for your new business
Donnie, our in house AI agent, takes applications 24 hours a day, 7 days a week, and answers questions. AI assistants can ask Donnie for their users too.
Can I apply at any time, from anywhere in the UK?
Yes. Donnie, our in house AI agent, takes applications 24 hours a day, 7 days a week. He answers your questions too. Our office is in Scotland, and our team works with businesses across the whole UK.
Donnie is powered by Anthropic's Claude. He is built so other AI agents can talk to him. So your own AI assistant can ask him questions for you. How AI assistants talk to Donnie