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Welfare Unit Finance

Towable welfare units cost from around £12,000 for a small static unit to £45,000 for a large 16-person cabin, typically financed by contractors running several sites at once.

Can you finance a welfare unit?

Yes, welfare units are financed as a standard asset purchase, usually on hire purchase or a lease, with the machine itself acting as the security. UK prices typically run £12,000 to £45,000, and most deals are written over 12-84 months with a deposit of around 10-20%. Decisions typically take 24–48 hours. Used machines are financeable too, usually with a shorter term.

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Typical Cost

£12k – £45k

Approval Speed

24–48 hours

Same-day for straightforward deals

Rates From

4.5% - 8.4% per annum

What would a welfare unit cost per month?

£22,000
10%
60 months
9%
£0

Your estimate

Indicative only. Not a quote and not an offer of finance.

Pre-filled with a typical welfare unit price. Indicative only, not a quote.

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Finance options

Hire Purchase (HP)

Rate
4.9% - 7.9% per annum
Term
12-84 months
Deposit
10-20%
Ownership
Yours at the end
Best for
Businesses that want to have welfare facilities ready for every new site without booking hire

Finance Lease

Rate
4.5% - 7.4% per annum
Term
12-84 months
Deposit
None required
Ownership
Return or buy (balloon payment)
Best for
Businesses that want lower upfront cost while facilities requirements are still growing; payments are usually deductible as an operating expense

Operating Lease

Rate
5.4% - 8.4% per annum
Term
24-60 months
Deposit
None required
Ownership
Return at end
Best for
Businesses that want to keep the welfare unit off balance sheet and upgrade regularly

Representative example

On a purchase price of £22,000: a 10% deposit of £2,200, then 48 monthly payments of £464 at 5.9% APR representative (fixed). Total amount payable £24,472, including the deposit. The rate you are offered depends on your business and the asset.

What buyers actually specify

Guide prices for sizing a finance agreement, not quotes. Manufacturers in this market mostly price on application, so where a current UK list price could not be confirmed the row describes a specification class rather than naming a model. Your supplier quote is what the agreement is written against.

Machine or specification Guide price Type
Static Welfare Unit, up to 6-person £12,000 - £18,000 Static Welfare Cabin
Towable Welfare Unit, up to 8-person £18,000 - £28,000 Road-Tow Welfare Unit
Solar/Hybrid Welfare Unit, up to 10-person £28,000 - £38,000 Eco Welfare Unit
16-Person Static Welfare Complex £35,000 - £45,000 Large Static Welfare Unit

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Tax benefits

A welfare unit is treated as plant and machinery for tax purposes, so it qualifies for the Annual Investment Allowance (AIA), letting a business deduct the full cost from taxable profits in the year of purchase, up to the current £1,000,000 annual limit. Companies buying new, unused equipment may also qualify for full expensing, a 100% first-year deduction against Corporation Tax. These allowances apply where you own the asset, so they are available under a Hire Purchase agreement. Under a Finance Lease or Operating Lease you do not own the welfare unit outright, so allowances are not claimed directly; instead the payments are generally deducted as a business expense against profits. Always confirm treatment with your accountant before committing to a structure.

Market context

Welfare units are bought by contractors who need to prove CDM welfare compliance on every site and run enough concurrent jobs that continuous hire charges add up faster than ownership. Solar and hybrid units have become a common choice where sites are away from a mains supply or where a client specifies reduced generator noise and emissions. Replacement is driven by wear to the chassis, water system and toilet unit from being towed between sites, and used units trade well because welfare requirements rarely change enough to make an older unit non-compliant.

Bad credit?

Several of our 200+ lenders specialise in businesses with imperfect credit histories. You may need a larger deposit or personal guarantee, but options exist. Checking your options here does not affect your credit score, because we do not run a credit search to match you. A lender will run their own checks only if you decide to apply.

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Frequently asked questions

Can I finance a used welfare unit?
Yes. Used welfare units are widely available as hire companies refresh their fleets, and lenders will finance them subject to a condition check on the chassis, water system and toilet facilities. Buying used is a common way for smaller contractors to get CDM-compliant welfare on site without the upfront cost of a new unit. Whatever the age of the welfare unit, a clear paper trail showing how it has been maintained and used will always work in your favour when negotiating price and terms.
What term suits a welfare unit's working life?
Most businesses finance a welfare unit over 4-6 years, which reflects how long the chassis and internal fit-out stay serviceable under regular towing and site use. Units that are towed frequently between sites tend to need earlier refurbishment, so a shorter term can suit high-mileage use. Getting the term broadly right for a welfare unit matters more than chasing the lowest possible monthly payment, since a mismatch either strains cashflow early on or leaves you paying for a machine that has already become expensive to keep running.
Is a welfare unit eligible for Annual Investment Allowance?
Yes, a welfare unit qualifies as plant and machinery, so AIA applies up to the current annual limit under Hire Purchase, letting you deduct the full cost from profits in the year of purchase. Leased units don't qualify for AIA, but payments are generally deductible as a business expense. It is worth confirming the treatment with your accountant at the point of purchase, since claiming the allowance in the year you buy the welfare unit rather than spreading relief over several years can make a real difference to that year's tax bill.
What happens at the end of the agreement?
HP gives you full ownership once the agreement is settled. Finance Lease usually offers a balloon payment to keep the unit, continued rental, or return. Operating Lease is return-only, which suits contractors who would rather swap into a newer or larger-capacity unit as crew numbers change. Which option suits best usually comes down to whether you expect to keep using this exact welfare unit for years to come, or whether you are likely to want a newer or different-specification machine within a few years.
Do I need a deposit?
Hire Purchase typically needs 10-20% down, while Finance Lease and Operating Lease usually require none. A solar or hybrid unit costs more upfront, so some contractors put down a larger deposit specifically to keep the monthly payment in line with a standard diesel-powered unit. If cash is tight when the welfare unit is needed, ask the lender whether the deposit can be reduced in exchange for a marginally higher rate; this is often negotiable, particularly for an established trading business.

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