Finance for trades: key facts
- Asset finance (hire purchase, leasing and refinancing) uses the equipment or vehicle as the lender's security, so how identifiable and resaleable the asset is matters a lot.
- Hire purchase means you own the asset at the end; leasing means you rent it. HMRC treats HP as a supply of goods, so VAT on the asset is usually paid at the start.
- Plant, HGVs and vans are generally easier assets to finance than loose scaffold stock, software or fit-outs.
- VAT is usually due 1 month and 7 days after the end of the VAT period; HMRC late payment penalties start from day 16.
- Construction subcontractors registered for CIS have 20% deducted from payments (30% if not registered) unless they hold gross payment status, which affects cash flow.
- Lorries over 3.5 tonnes need an operator's licence with financial standing that finance on the vehicle doesn't provide.
- We don't lend, broke or advise. Finance is subject to status and the lender's checks, and we may be paid for introductions.
Finance by trade
Each trade has its own finance quirks: what it buys, how lenders see those assets, when the money comes in and what licences or schemes apply. Our trade guides explain them.
More trade guides are on the way, including plant hire, groundworks, roofing, electricians, plumbers and heating engineers, builders, landscapers, tree surgeons, taxis, removals, cleaning, catering, salons, gyms, farming, manufacturing, printing, garages, dentists, vets, restaurants and pubs.
Finance by asset
The asset you're funding often decides the type of finance more than your trade does. Identifiable assets with a resale market, like plant and vehicles, are the easiest to fund.
Tax bills and cash flow
Trades often owe VAT on invoices that haven't been paid yet, and wait weeks for contractors or customers to pay. Short-term loans, HMRC Time to Pay and invoice finance are the main options.
How does Trade Finance Hub work?
You read the guides for free. If you want help, you fill in one short form, and with your consent we pass it to one specialist commercial finance broker, who contacts you to discuss options. We may be paid by them for the introduction; we don't charge you.
- Read up. Our guides explain how finance works for your trade and the asset you're buying, in plain English.
- Send one enquiry. Tell us your business type, what you want to fund and roughly how much.
- One broker contacts you. We pass your enquiry to one specialist commercial finance broker from our partners, not to a list of firms.
- They explain your options. The broker, or the lender, must explain the costs and terms before you agree to anything. You're under no obligation.
For UK limited companies and LLPs. Our enquiry service is for limited companies and limited liability partnerships (LLPs) only. IIB Trading Ltd is not authorised by the Financial Conduct Authority, so we can't accept enquiries from sole traders or partnerships.
What is Trade Finance Hub, and what isn't it?
Trade Finance Hub is an independent website and introducer run by IIB Trading Ltd. We aren't a lender or a broker, we don't give financial, tax or legal advice, and we can't promise finance.
- We don't publish rates or costs. They depend on your business and the lender, and the broker or lender must explain them before you agree to anything.
- We don't compare named lenders. A broker will look at the lenders that suit your enquiry.
- We don't promise approval. Finance is subject to status and the lender's checks. Be wary of anyone who says otherwise.
- We check our facts. Tax deadlines, scheme rules and licence requirements on our guides are checked against GOV.UK and legislation.gov.uk, and every guide lists its sources and review date.
Related guides
Finance for trades: frequently asked questions
What is finance for trades?
Finance for trades is business finance used by trade and service businesses: asset finance for equipment, plant and vehicles, loans for tax bills or growth, and cash flow finance such as invoice finance.
Are you a lender or a broker?
Neither. We are an independent guide and introducer run by IIB Trading Ltd. With your consent we pass your enquiry to one specialist commercial finance broker from our partners, and we may be paid for the introduction.
Who can use the enquiry form?
For UK limited companies and LLPs. The guides themselves are free for anyone to read.
Do you charge for the introduction?
No, we don't charge you. We may be paid by the broker for the introduction, and brokers may be paid commission by lenders. Your broker should tell you how they're paid.
Why don't you show interest rates?
Rates and costs depend on your business, the asset and the lender, so any figure we published could mislead you. The broker or lender must explain the costs of any finance before you agree to it.
Can you guarantee I'll get finance?
No. Nobody can honestly promise that. Finance is subject to status and the lender's checks.
Will my details go to lots of companies?
No. We pass each enquiry to one partner only. Our privacy policy explains how we handle your details.
What information will a broker need?
Usually your business details and Companies House number, recent accounts and bank statements, details of what you're funding, and how long you've been trading. Our guides list what's typically asked for in each situation.
Sources
We checked the facts on this page against these sources on 12 November 2026: