Common funding needs in the trades sector
- Buying or replacing vans, tippers and tow vehicles
- Funding tools, equipment and small plant
- Working capital for materials between job invoicing
- Bridging customer payments on larger commercial work
- Investing in marketing, vehicle livery and websites
- Funding apprentices and additional labour during peak periods
Finance types that usually fit
Based on how UK lenders typically underwrite this sector, the following finance categories are the most common fit:
Asset Finance
Finance to buy/refinance equipment, vehicles or machinery.
Unsecured Business Loan
Term loan or credit line repaid through fixed instalments.
Invoice Finance
Funding advanced against unpaid B2B invoices.
Business Credit Card
Revolving credit/charge card for expenses and short-term spend.
Sector-specific eligibility blockers
- Sole traders without limited company accounts harder for larger unsecured borrowing
- Cash-heavy domestic work without bank statement trail
- Concentration on one or two builders/main contractors
- Adverse personal credit history common in the sector
- CIS deductions complicate net income presentation
How routing usually works in trades
Trades routing starts with the work mix. Vehicles and tools go to asset finance — mainstream commercial vehicle lenders cover trades vans routinely, often accepting shorter trading history with strong personal credit. B2B trades (commercial fit-out, sub-contractors to main contractors) can use invoice finance, though many IF lenders treat construction-related trades as a separate underwrite. Pure domestic trades usually use working capital from iwoca or Funding Circle plus a credit card for materials. Larger established firms with profitable accounts can borrow more substantially via secured or unsecured term debt.
UK lenders active in trades
The lenders below publish criteria consistent with funding businesses in this sector. Final approval is always subject to lender underwriting.
Lombard
Asset finance / HP
- Amount
- £25k+
- Speed
- Not disclosed
- Security / PG
- Security/guarantees may be required
- Data confidence
- Medium
Novuna Business Finance
Asset finance
- Amount
- Not disclosed
- Speed
- Not disclosed
- Security / PG
- Asset-backed
- Data confidence
- High
Propel Finance
Asset finance
- Amount
- Not disclosed
- Speed
- Contact within 1 working day
- Security / PG
- Asset-backed
- Data confidence
- Medium
Simply Asset Finance
Asset finance
- Amount
- £15k–£5m
- Speed
- Not disclosed
- Security / PG
- Asset-backed
- Data confidence
- High
iwoca
Business loan / credit line
- Amount
- £1k–£1m
- Speed
- Instant/same-day for many
- Security / PG
- Unsecured positioning
- Data confidence
- High
Kriya
Selective invoice finance
- Amount
- Up to 90% invoice advance
- Speed
- Within 24h advertised
- Security / PG
- Invoice-backed
- Data confidence
- Medium
Capital on Tap
Business credit card
- Amount
- Up to £250k
- Speed
- Often same-day decision
- Security / PG
- No unsatisfied CCJs in last 12 months; director/shareholder test
- Data confidence
- High
Frequently asked questions
- Can a sole-trader plumber get a van on finance?
- Yes — this is one of the most common UK asset finance use cases. Lenders typically want 3–6 months minimum trading, a clean personal credit file and a deposit of 10–20%. Some specialist asset finance lenders work specifically with trades.
- What working capital options exist for a builder?
- Unsecured loans from iwoca and Funding Circle suit established builders with consistent revenue. Invoice finance against B2B work (main contractors, commercial sites) is possible via sector-aware lenders. A business credit card from Capital on Tap covers material purchases.
- Can I get finance with a CCJ in the past?
- Often yes, particularly for asset finance where the vehicle or tools act as security. Older satisfied CCJs are easier than recent unsatisfied ones. Specialist non-prime lenders cover the sector where mainstream criteria don't fit.
- How does CIS affect a trade business's finance application?
- Lenders model gross turnover before CIS deductions and ask for evidence of CIS returns. Net cashflow visible on bank statements is also weighted. CIS-registered contractors should be ready to share gross and net figures.
- Can I get a business credit card as a sole trader?
- Yes, several providers including Capital on Tap accept sole traders. The personal credit check carries more weight than for a limited company. Useful for fuel, merchant materials and travel.
Related use cases
Eligibility checks for this sector
Each finance type has its own eligibility signals. The pages below explain what UK lenders typically look at — criteria can change and final decisions are subject to lender underwriting.