Finance Assets arranges hire purchase and leasing for UK skip hire and waste businesses buying builder’s skips, roll-on roll-off containers and compactors.
Waste skip finance spreads the cost of new skips over 2 to 5 years, so a skip hire firm can grow its fleet ahead of demand or take on a new contract without tying up cash. We are a broker, not a lender, so we compare quotes from our lender panel rather than offering one bank’s product.
Written by Marcus Wright, founder of Bolton Business Finance Ltd, in financial services since 2008 and a commercial finance broker since 2019. Last reviewed October 2026.
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The short version
- Waste skip finance lets a business spread the cost of new skips over 2 to 5 years.
- A whole batch of skips and roll-on roll-off containers can go on one agreement.
- Steel skips last for years and keep some resale value, so lenders are generally comfortable funding them.
- With hire purchase, the business owns the skips after the final payment. Leases keep upfront costs lower.
- Finance Assets arranges skip finance for limited companies and LLPs, and for sole traders and partnerships on agreements over £25,000.
| Item | Detail |
|---|---|
| Equipment covered | Mini, midi, builder’s and maxi skips, roll-on roll-off containers, hooklift bins, compactors and balers |
| Terms | Usually 2 to 5 years |
| Paid upfront | Hire purchase: often a 10% deposit plus VAT. Leases: usually 1 to 3 rentals in advance |
| New or used | Mainly new. Refurbished roll-on roll-off containers can sometimes be funded |
| Extra costs | Delivery, painting in company colours and signwriting can often be included |
| Who we help | Limited companies and LLPs, plus sole traders and partnerships on business agreements over £25,000 |
Skips and containers we finance
Lenders will fund most skips and waste containers bought from an established manufacturer on a clear quote, whether you hire them out or use them on your own sites.
| Equipment group | Examples |
|---|---|
| Chain-lift skips | Mini (2 to 3 yard), midi (4 to 5 yard), builder’s (6 to 8 yard) and maxi (10 to 16 yard) skips, open, enclosed or with drop doors |
| Roll-on roll-off containers | 20 to 40 yard open and enclosed RoRo containers for construction, demolition and industrial waste |
| Hooklift bins | Hooklift containers and bins for hook loader vehicles |
| Compactors and balers | Static and portable compactors, compaction RoRo containers, and cardboard and plastic balers |
| Yard equipment | Material handlers, loading shovels, picking lines and screens for a waste transfer station |
The skip loaders and hook loaders that carry the skips can be funded alongside them, or separately. See haulage and vehicle finance. For smaller bins and four-wheeled containers, see wheelie bin finance.
Are skips assets?
Yes. A skip is a tangible fixed asset for a skip hire or waste business, because it is bought to be hired out or used over several years rather than sold. A well-maintained steel skip can stay in service for many years with periodic repairs and repainting, so skips are usually capitalised and depreciated in the accounts.
For tax, skips generally count as plant and machinery, so a business that buys them outright or on hire purchase may be able to claim capital allowances. Your accountant can confirm the treatment for your business.
What lenders look at on skip finance
- Your waste licences. Lenders expect to see your waste carrier, broker or dealer registration, and the environmental permit for any transfer station you run. A business without the right registrations will struggle to get finance.
- Fleet size and utilisation. Lenders like to see that the skips you already own are out on hire, which shows demand for more. Hire rates and turnaround times help make the case.
- Resale value. Steel skips and RoRo containers hold some value, as there is a second-hand market and scrap value as a floor. Lenders are more comfortable with skips than with plastic bins for this reason.
- Where the skips are kept. Skips spend most of their time on customers’ sites. Lenders accept this, but serial numbers and company livery help identify them.
- Customer concentration. If a large share of the skips are for one construction contract or industrial customer, lenders may ask about that contract and how long it runs.
Hire purchase, finance lease and operating lease compared
Hire purchase suits skips you will keep and repaint for years. A lease suits you better if you want to spread the VAT or match payments to a contract. Our types of asset finance guide covers each option in more depth.
| Option | How it works | Best for |
|---|---|---|
| Hire purchase | You pay a deposit and fixed monthly payments, and own the skips after the final payment and any option fee | Skips and containers you will run for many years |
| Finance lease | You rent the skips for most of their working life. At the end you extend at a low rent, or sell them for the lender and keep most of the proceeds | Large fleet orders where spreading the VAT helps cash flow |
| Operating lease | You rent the equipment for part of its life, then hand it back. Mostly available on compactors, balers and yard machinery | Equipment tied to a fixed-term customer contract |
Hire purchase for waste skips
Hire purchase is the usual choice for skips. You pay a deposit, usually 10% plus the VAT, then fixed monthly payments, and ownership passes to you after the final payment and a small option-to-purchase fee. As the owner for tax purposes, the business may be able to claim capital allowances on the skips.
Finance lease for waste skips
A finance lease keeps the upfront cost to a few rentals, and VAT is spread across the rentals rather than paid at the start. The lender owns the skips throughout. At the end of the main term you can keep using them for a low secondary rent, or sell them on the lender’s behalf and receive most of the sale proceeds.
Operating lease for waste skips
An operating lease sets the rentals against what the equipment is expected to be worth at the end of the term, so the lender carries the resale risk. It is less common on plain skips, which take hard wear, and more often offered on compactors, balers and transfer station machinery. At the end you hand the equipment back, extend the lease or upgrade.
Waste skip finance costs: a worked example
A £75,000 skip order, such as 60 builder’s skips and 8 roll-on roll-off containers, painted and signwritten, costs about £1,680 a month on a 4-year hire purchase, or about £1,401 a month over 5 years.
| Item | 4 years | 5 years |
|---|---|---|
| Price (excl. VAT) | £75,000 | £75,000 |
| Deposit (10%) | £7,500 | £7,500 |
| VAT paid upfront | £15,000 | £15,000 |
| Monthly payment | £1,679.74 | £1,401.19 |
| Total interest | £13,128 | £16,571 |
The longer term lowers the monthly payment by about £279 but adds around £3,444 of interest. Many lenders will also defer the VAT for a few months.
Illustration calculated in October 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.
VAT and tax on skip finance
| Option | VAT | Usual tax treatment |
|---|---|---|
| Hire purchase | Paid on the full price at the start, reclaimable if you are VAT registered | You may be able to claim capital allowances, such as the Annual Investment Allowance, and the interest is deductible |
| Finance lease | Added to each rental | Rentals are usually deductible |
| Operating lease | Added to each rental | Rentals are usually deductible |
Tax depends on your circumstances, so check the treatment with your accountant.
What lenders ask for
Most waste skip finance applications need the following.
- Your last 2 years of filed accounts, or management accounts and a forecast if you are newer
- Your last 3 to 6 months of business bank statements
- A quote from the skip manufacturer, showing sizes, quantities and any painting or signwriting
- Your waste carrier registration and any environmental permits
- Photo ID and address history for each director
- Details of any existing finance agreements
Related guides
Who we can help
We arrange waste skip finance for 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.
Waste skip finance FAQs
Can I finance a small number of skips?
Sometimes, but a few skips can fall below a lender’s minimum deal size. It usually works better to fund a batch of skips, or combine them with RoRo containers or a vehicle on one agreement. We can help limited companies and LLPs at most sizes, and sole traders and partnerships on agreements over £25,000.
How much does it cost to finance a skip order?
It depends on the order, the term and your business. As an illustration, a £75,000 skip order costs about £1,680 a month over 4 years on hire purchase at 9%, after a 10% deposit and the VAT paid upfront, or about £1,401 a month over 5 years.
Are skips assets?
Yes. A skip hire or waste business treats skips as tangible fixed assets, capitalising and depreciating them over their working life. For tax they generally count as plant and machinery, so capital allowances may be available. Check the treatment with your accountant.
Can I finance skips and a skip lorry together?
Yes. Many skip hire firms fund a skip loader or hook loader and a batch of skips on the same agreement, or on linked agreements with the same lender. The vehicle usually carries most of the security, which can help with terms on the skips.
Do I need a waste carrier licence to get skip finance?
In practice, yes. Lenders funding a skip hire or waste business expect to see your waste carrier registration, and an environmental permit for any transfer station. Without them, most lenders will decline.
Can a new skip hire business get finance?
Yes, although lenders look more closely at newer companies. They may ask for a larger deposit, a personal guarantee from the directors, or a business plan showing local demand and tipping arrangements. Directors with experience in the waste or construction industry both help.
Get a waste skip finance quote
Tell us what you want to finance
Send us the skips, quantities, the price and a few details about your business. 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.