Financing Options for Handyman Startups

In the ever-changing world of business, starting a handyman business can be an economically viable venture. But one of the biggest problems that would-be handymen often have is getting the money they need to start their businesses. Traditional bank loans might not always be the easiest or most practical choice. This article talks about different ways to get money for handyman businesses. It gives advice and tips to people who want to turn their handyman skills into a flourishing business.

Understanding the Landscape

Before looking into other ways to get money, it’s important to understand the unique problems that handyman businesses face. These kinds of businesses usually need money to start up so they can buy tools, equipment, marketing materials, and maybe even a car. A lot of people who want to be handymen might not have a good credit background, which makes them less appealing to traditional lenders. This fact makes it possible to look into other ways to get money that can fit the wants and situations of handyman businesses just starting.

Peer-to-Peer Lending

People are turning more and more to peer-to-peer lending sites as an alternative to traditional loans. These sites cut out the middlemen and connect borrowers directly with individual loans. Peer-to-peer loans can be a more flexible and easy way for handyman businesses to get money. People can invest in your business on websites like Prosper and LendingClub. This can help you pay for tools, marketing, or any other start-up costs. But it’s important to look over the terms and interest rates very carefully before choosing this method of purchasing.


For many startups, crowdfunding has changed everything because it lets them get money from a lot of different people. Internet sites like Kickstarter and Indiegogo let business owners share their business ideas and get donations from people who want to help the project. Crowdfunding can be a good way for new handyman businesses to show off their skills, talk about their business plan, and get money from a community of possible customers and backers.


Online lenders, community development financial institutions (CDFIs), and nonprofits are common places that offer microloans, which are small loans with short terms. For small businesses and new businesses, these loans are especially helpful. As an entrepreneur handyman, getting microloans from groups like Kiva or Accion can help you get the money you need to buy tools and start selling your business. Most of the time, microloans have lower interest rates and easier requirements to meet than standard loans.

Business Credit Cards

To start a handyman business, getting a business credit card can be a good way to get money, but using personal credit cards could be risky. You can get cashback or trip rewards on business credit cards, and you can use them to pay for things like tools, equipment, and even advertising costs that you need to start your business. But it’s important to be smart about how you use business credit since bad handling can put you in a lot of debt and hurt your credit score.

Invoice Financing

For handyman companies that have to bill customers a lot, invoice financing can be a useful option. In this way of getting money, you sell your unpaid bills to a different company at a lower price. This lets you get cash right away instead of having to wait for customers to pay their bills. Even though this can be a quick way to get cash flow, you should carefully look at the fees that come with invoice financing to make sure they fit with your business’s financial goals.

Equipment Financing

Since tools and equipment are what a handyman business runs on, it’s important to look into your choices for financing equipment. With equipment funding, you can rent or buy the tools you need and pay for them over time. This can be especially helpful for new businesses that don’t have a lot of money to start with. A lot of lenders focus on financing business tools and offer terms that are perfect for small businesses.

Government Grants and Programs

Small companies, like those in the handyman industry, can get help from grants and programs from the government and other groups. Finding grants and asking for them can take a lot of time, but the possible benefits can be worth it in a big way. As a way to boost local economies and urge people to start their businesses, government grants are often a good choice for startups.

Angel Investors and Venture Capital

Angel investors or venture capitalists might be a good way for service businesses with big growth plans to get the money they need. Angel investors are usually people who put their own money into new businesses. Venture capitalists, on the other hand, manage a pool of money from different sources. Investors like these usually want a piece of the business or stock in exchange for their money. Before going down this path to get money, you should carefully check out possible investors and make sure their goals are in line with yours.


Finding funding for a handyman business needs imagination and resourcefulness in the fast-paced world of entrepreneurship. Alternative financing choices can save the day for business owners who are having trouble getting traditional loans. Handymen can get the money they need to turn their skills into a successful business through peer-to-peer lending, crowdfunding, microloans, and other creative methods. A well-thought-out business plan and careful thought of each choice can help you start and run a successful handyman business.

To create your Handyman business plan, check out my template here.

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