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Tool Finance

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Tool Finance

What is Tool Finance?

Tool Finance allows tradespeople and small businesses to purchase or upgrade essential tools through affordable monthly payments. It ensures you have the right equipment when you need it, without large upfront costs.

This type of finance supports productivity and business growth while preserving working capital for day-to-day operations.

Am I Eligible for an Tool Finance?

Tool Finance is available to UK-based sole traders, limited companies, and partnerships with a trading history of at least 6 months. You’ll typically need to demonstrate a steady income, and in some cases, a personal guarantee may be required.

How Much Can I Borrow with Tool Finance?

Loan amounts usually range from £1,000 to £100,000, depending on the size of your business and the tools required. Lenders will assess the value of the tools and your business financials when determining the amount.

How Fast Can I Get Approved & Funded?

Approvals can take as little as 24 hours, with funds often released within 3 to 5 working days. A quick application process ensures you can access the tools you need with minimal delay.

What Can Tool Finance Be Used For?

This finance is ideal for acquiring new hand tools, power tools, diagnostic equipment, or even specialist machinery for construction, automotive, or trades sectors. Both new and second-hand tools may be eligible.

What Are the Interest Rates & Terms?

Interest rates generally range from 5% to 15% depending on the lender and your business credit profile. Repayment terms usually span from 6 months to 5 years, with fixed monthly instalments and potential arrangement fees.

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Please note the minimum requirement is £5,000.

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Journey

Submit your enquiry

Complete our quick online form with a few details about your business and what you need funding for. No commitment, no jargon.

Speak to a specialist

A dedicated finance expert will get in touch to understand your needs and tailor options that work for your business.

Get matched with a lender

We’ll match you with trusted lenders from our panel, offering competitive rates and flexible terms suited to your sector.

Choose your finance offer

Review your finance offers with full transparency. We’ll guide you through the details so you can make a confident decision.

Receive your funds

Once approved, your funds are released quickly — often within 24–48 hours — so you can get back to growing your business.

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Monthly Payment
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Total Repayment
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Industries

Agriculture & Natural Resources

Technology & Telecommunications

Manufacturing & Industry

Transportation & Logistics

Healthcare and Life Sciences

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FAQs

Can my limited company apply for Tool Finance without a trading history?

Most lenders require at least 6 months of trading. However, if your business is newly incorporated but supported by directors with strong financial backgrounds, some lenders may still consider your application.

Is it possible to finance tool packages from multiple suppliers?

Yes. Some lenders can consolidate multiple invoices or quotes into a single finance agreement, simplifying repayment and procurement.

Are there any restrictions on the type of tools that can be financed?

Generally, the tools must be business-critical, new or used, and sourced from a reputable UK supplier. Specialist or niche equipment may require further assessment.

What happens if the tools become outdated during the finance term?

Some agreements offer upgrade options during the term or allow refinancing for replacement tools. Lease arrangements may also support this flexibility.

Can I settle the finance early?

Yes, most agreements allow early settlement. Some lenders may offer a discount on remaining interest; others might charge a small fee. Always check the terms before committing.

Jamie Davies

Head of Lending

"Tool finance supports tradespeople and businesses by spreading the cost of essential tools over time, improving cash flow and enabling immediate access to vital equipment. By financing tools rather than paying upfront, businesses preserve working capital while staying productive and competitive."
Disclaimer: Spark Finance Ltd (Registered office - 18 John Stow House, London, England, EC3A 7JB, Registered Number 10128297) helps UK firms access business finance. Spark is a credit broker, not a lender. Any quotes provided are for information purposes only and subject to status and separate lender terms and conditions. Applicants must be aged 18 and over.  Guarantees and Indemnities may be required.  Spark Finance may receive commission from lenders  which may vary depending on the lender, product, or other permissible factors. The nature of any commission model will be confirmed to you before you proceed.

Spark Finance Ltd is authorised and regulated by the Financial Conduct Authority in the UK (FRN 958123).