Finance Assets arranges asset finance for electrical contractors, helping UK businesses fund vans, access platforms, test equipment and installation kit.
Asset finance for electrical contractors spreads the cost of that equipment over 2 to 5 years, so cash stays free for wages, materials and the wait for main contractors to pay. It suits firms taking on a larger contract, growing a van fleet or moving into solar PV, battery storage and EV charger installation.
Written by Marcus Wright, founder of Bolton Business Finance Ltd, in financial services since 2008 and a commercial finance broker since 2019. Last reviewed September 2026.
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The short version
- Asset finance lets electrical contractors spread the cost of vans, access equipment and tools over 2 to 5 years.
- Hire purchase leads to ownership, while leasing and contract hire keep the equipment with the lender.
- Vans and several items of kit can go on one agreement, even from different suppliers.
- Lenders look closely at order books and at how main contractors pay, including retentions.
- Finance Assets arranges asset finance for electrical contractors trading as limited companies and LLPs, and for sole traders and partnerships on agreements over £25,000.
| Item | Detail |
|---|---|
| Equipment covered | Vans, scissor lifts and cherry pickers, test instruments, installation tools, generators and software |
| Terms | Usually 2 to 5 years, matched to how long the equipment stays in use |
| Paid upfront | Hire purchase: often a 10% deposit plus VAT. Leases and contract hire: usually 1 to 3 rentals in advance |
| New or used | Both, including ex-fleet vans and used access platforms |
| Extras | Van racking, ply lining, signwriting, calibration and software can often be included |
| Who we help | Limited companies and LLPs, plus sole traders and partnerships on business agreements over £25,000 |
Equipment we finance for electrical contractors
Lenders will fund most of the equipment an electrical contracting business relies on, from the vans that carry the team to the instruments that certify the work.
| Equipment group | Examples |
|---|---|
| Vans and vehicles | Panel vans, crew vans, Luton vans and van racking. See haulage finance for the wider vehicle range |
| Access equipment | Scissor lifts, cherry pickers and other mobile elevating work platforms (MEWPs), podium steps and scaffold towers |
| Test and inspection | Multifunction installation testers, PAT testers, thermal imaging cameras and power quality analysers |
| Installation tools | Cable pullers, drum trailers, core drills, press tools, crimpers and conduit benders |
| Renewables and EV | Tools, test kit and vehicles for solar PV, battery storage and EV charge point installation |
| Plant and site power | Generators, lighting towers and mini diggers for cable trenching |
| Office and software | Design and estimating software, IT and job management systems |
How electrical contractors use asset finance
Electrical contractors usually turn to asset finance at a point of growth, when the equipment is needed before the income it will earn has arrived.
- Winning a bigger contract. Funding the extra vans and access kit before the first valuation is paid.
- Growing the fleet. Adding vans one at a time on the same terms as the business takes on engineers.
- Adding a new service. Equipping a team for solar PV, battery storage or EV charge point work.
- Keeping test kit current. Replacing instruments on a cycle as they age and as the wiring regulations change.
- Releasing cash. Refinancing vans and plant the business owns outright.
Finance options for electrical contractors
Electrical contractors mostly buy vans and plant on hire purchase and lease equipment that dates quickly. Our types of asset finance guide covers each option in more depth.
| Type | How it works | Suits |
|---|---|---|
| Hire purchase | A deposit, then fixed monthly payments. You own the equipment after the last one | Vans, access platforms and plant you will keep for years |
| Finance lease | Rentals with VAT added to each one. The lender owns the equipment | Spreading the VAT on a large kit order |
| Operating lease | Lower rentals priced around the expected resale value. You hand it back at the end | Test instruments and IT you replace every few years |
| Contract hire | A fixed rental for an agreed term and mileage, often with maintenance included | Van fleets with predictable monthly costs |
Hire purchase for electrical contractors
Hire purchase for electrical contractors is the usual way to buy vans, scissor lifts and plant. You pay a deposit, often around 10% plus the VAT, then fixed monthly payments, and the equipment is yours after the last one. You are treated as the owner for tax from the start, so you may be able to claim capital allowances.
Finance lease for electrical contractors
A finance lease for electrical contractors suits a large kit order, because VAT is added to each rental instead of being paid upfront. The lender keeps ownership. At the end you can usually keep using the equipment for a small secondary rental, or sell it and receive most of the proceeds.
Operating lease for electrical contractors
An operating lease for electrical contractors works well for equipment that dates, such as test instruments, thermal cameras and IT. Rentals are set around what the kit should be worth at the end, and you hand it back or upgrade when the term finishes, which keeps the business on current equipment.
Contract hire for electrical contractors
Contract hire for electrical contractors is used mainly for vans. You pay a fixed monthly rental for an agreed term and mileage, and servicing, maintenance and tyres can often be included. The van goes back at the end, so the lender carries the resale risk and fleet costs stay predictable.
VAT and tax for electrical contractors
Commercial vans, access equipment and tools are not cars, so a VAT-registered contractor can usually reclaim the VAT in full. On hire purchase, VAT on the full price is usually paid at the start and reclaimed on the next return. On a lease or contract hire, VAT is added to each rental. With hire purchase you may be able to claim capital allowances, and lease rentals are usually an allowable business expense. Check the tax treatment with your accountant.
Electrical contractor finance costs: a worked example
Two new panel vans at £32,000 each and a £14,000 scissor lift, £78,000 in total, cost about £1,747 a month on a 4-year hire purchase, or about £1,476 a month with a 20% balloon.
| Item | Standard | With 20% balloon |
|---|---|---|
| Equipment price (excl. VAT) | £78,000 | £78,000 |
| Deposit (10%) | £7,800 | £7,800 |
| VAT paid upfront | £15,600 | £15,600 |
| Monthly payment (48 months) | £1,746.93 | £1,475.72 |
| Final balloon payment | None | £15,600 |
| Total interest | £13,653 | £16,235 |
The balloon frees up about £271 a month for wages and materials, in exchange for about £2,582 more interest over the four years. Putting the vans and the lift on one agreement also means one application and one monthly payment.
Illustration calculated in September 2026, assuming an interest rate of 9% a year. It is not a quote. Your rate depends on your trading history, credit profile and the equipment.
What lenders look for in electrical contractors
Lenders look at the usual financial documents, plus the things that show how steady an electrical contractor’s income is.
- Your last 2 years of filed accounts, or management accounts and a forecast for newer firms
- Your last 3 to 6 months of business bank statements
- Your order book, and the details of any large contract the equipment is for
- How and when main contractors pay you, including any retentions
- Trade registration such as NICEIC or NAPIT, which some lenders like to see
- Supplier quotes, plus photo ID and address history for each director, member or partner
Related guides
Who we can help
We arrange asset finance for electrical contractors that trade as UK limited companies and LLPs, and for sole traders and partnerships on agreements over £25,000 that are for business purposes. We are not authorised by the FCA, so we cannot arrange agreements of £25,000 or less for sole traders or partnerships of two or three partners, or finance for personal use.
Asset finance for electrical contractors FAQs
Can electrical contractors get finance on used vans?
Yes. Used vans from dealers and ex-fleet sales are widely funded, and many lenders will include racking, ply lining and signwriting in the same agreement. Lenders look at the van’s age and mileage, and older vans may be offered a shorter term so the agreement ends while the van still has value.
Can a new electrical contracting company get asset finance?
Yes, although lenders look more closely at firms with a short trading history. Directors with years in the trade, NICEIC or NAPIT registration and a clear order book all help. Hire purchase on vans and access kit that hold their value is usually the easiest route, and a larger deposit or a personal guarantee may be needed.
Can I finance a scissor lift or cherry picker?
Yes. Scissor lifts, cherry pickers and other MEWPs are funded on hire purchase or leasing, new or used. Owning access equipment can work out cheaper than repeated hire on long jobs, and finance spreads the cost so the saving starts from the first month. Lenders will want the make, model and supplier invoice.
Can asset finance fund solar PV and EV charger installation equipment?
Yes. Contractors moving into solar PV, battery storage or EV charge point installation can fund the tools, test equipment, access kit and vans a new team needs. This finance is for your own equipment, not the systems you install for customers, which are paid for under your customer contracts.
Should an electrical contractor lease or buy vans?
It depends on how long you keep them. Buying on hire purchase suits firms that run vans for five years or more and want to own them. Contract hire suits firms that change vans every three or four years and want maintenance in the monthly cost. VAT on commercial vans is usually recoverable either way.
Can I refinance vans I already own?
Yes. Through a sale and hire purchase back, a lender buys vans or plant you own outright and sells them back over a fixed term, so they stay with you. The amount depends on their current value and age. Electrical contractors use it to fund a contract win, new kit or working capital.
Get an asset finance quote for your electrical business
Tell us what you want to finance
Send us the vans or equipment, the prices and a few details about your contracts. We will come back with the options that are realistic and what they are likely to cost.
About the author
Marcus Wright is the owner and founder of Bolton Business Finance Ltd, which trades as Finance Assets. He has worked in financial services since 2008, beginning his career at Santander, and has been a commercial finance broker since March 2019.
He founded Bolton Business Finance in 2020 to give businesses access to the whole lending market rather than one bank’s own product range. The firm is a member of the National Association of Commercial Finance Brokers and works with a panel of 135+ lenders. Call 0161 546 9128.
Finance Assets is a trading name of Bolton Business Finance Ltd, an independent commercial finance brokerage, not a lender. We are not authorised by the Financial Conduct Authority and can only complete non-regulated introductions. All lending is for business purposes only. Registered address: Westgate House, 1 Westgate Avenue, Bolton, Greater Manchester, BL1 4RF. Company number 12495909.