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Phase converters are essential enabling devices for woodworking businesses that want to run 3-phase industrial machinery—such as cabinet saws, spindle moulders, CNC routers, wide belt sanders, compressors, and extraction systems—from a standard UK 220–240V single-phase supply.
For many small workshops, rural sites, and light-industrial units, upgrading to utility-supplied 415V three-phase power is either unavailable or prohibitively expensive. Phase converters solve this problem by creating a manufactured third leg of voltage, allowing powerful, professional machinery to run reliably without a grid upgrade.
At Gable Business Finance, we arrange specialist phase converter finance for UK woodworking businesses, covering Hire Purchase, Finance Lease, Operating Lease, Refinance, and Debtor Finance for new and used converters. We frequently beat dealer finance, particularly when converters are bundled with used 3-phase machinery.
This guide explains how phase converters work, which type suits woodworking, and includes a machine-specific finance FAQ.
A phase converter is a device that allows three-phase machinery to operate from a single-phase electrical supply. It works by generating a third phase of power, creating a balanced three-phase output suitable for industrial motors.
Phase converters are widely used in:
Small woodworking workshops
Rural and agricultural units
Start-up manufacturing businesses
Sites where 3-phase grid power is unavailable or costly
They are often the key that unlocks access to industrial-grade machinery.
Most industrial woodworking machines are 3-phase only. These machines are:
More robust
More powerful
Often far cheaper on the used market than 1-phase equivalents
A phase converter allows businesses to buy better machines for less money.
3-phase motors:
Start more smoothly
Run cooler and quieter
Deliver consistent torque
Handle heavy cuts in hardwood without stalling
This is especially important for saws, moulders, CNC routers, compressors, and extraction systems.
A correctly sized phase converter can:
Power multiple machines
Support an entire shop
Allow machines to be started one at a time
This flexibility makes converters ideal for growing workshops.
Installing a phase converter typically costs a fraction of the price of upgrading to utility 3-phase power—which can exceed £30,000–£50,000+ depending on location.
The most common and reliable choice for woodworking shops.
How they work:
An idler motor generates the third phase, producing robust, balanced power.
Best for:
Cabinet saws
Spindle moulders
Wide belt sanders
Large band saws
Air compressors
Dust extraction systems
Advantages:
Excellent for heavy starting loads
Long service life
Can run multiple machines
Use advanced electronics to create and actively balance the third phase.
Best for:
CNC routers
CNC machining centres
Computer-controlled woodworking equipment
Advantages:
Highly stable voltage
Ideal for sensitive electronics
Compact footprint
A basic, capacitor-based solution.
Limitations:
Only assist motor start
Motor runs at ~⅔ power
Not suitable for heavy or continuous loads
Generally not recommended for serious woodworking production.
Incorrect sizing can damage motors.
Typical guidance:
Heavy starting loads (compressors): 2:1 converter HP : machine HP
General woodworking machines: 1.5:1
Light loads: 1:1 may be sufficient
If running multiple machines:
Add total connected horsepower
Allow headroom for starting surges
Ensure compatibility with:
220–240V machines
Delta or star motor configurations
⚠️ Undersized converters can cause overheating, stalling, and premature motor failure.
Small workshop RPCs: £1,500 – £3,000
Mid-range shop systems: £3,000 – £7,000
Large or CNC-rated converters: £7,000 – £15,000+
Used phase converters: Excellent value available
Phase converters are commonly financed—especially when paired with machinery purchases.
Hire Purchase is a flexible, cost-effective alternative to overdrafts or bank loans, ideal when long-term ownership is the goal.
Benefits:
Fixed or variable repayments
Payments matched to workshop cashflow
Capital allowances usually claimable
Interest payments tax deductible
VAT typically recoverable upfront (subject to VAT status)
Ownership transfers at the end
Simple, clear documentation
A tax-efficient option that keeps cash free for machinery and tooling.
Features:
Rentals aligned with depreciation
Fixed or variable rates
VAT payable on rentals, not upfront
End-of-term flexibility
Often used when converters are part of a larger automation upgrade.
Suitable where:
Lower monthly costs are needed
Technology may be upgraded
Balance-sheet efficiency matters
Residual value reduces repayments.
If you already own a converter outright, refinance can:
Release tied-up capital
Fund machinery upgrades
Improve working capital
Debtor Finance can support:
Electrical upgrades
Machinery expansion
Cashflow smoothing during growth
Can I finance a phase converter with a machine purchase?
Yes. Phase converters are often financed alongside saws, CNC routers, compressors, and extraction systems under a single agreement.
Is financing worth it for a relatively small unit?
Often, yes. The savings from buying used 3-phase machinery usually far exceed the finance cost.
Which converter type is best for woodworking?
Rotary converters for most workshops
Digital converters for CNC and sensitive electronics
Will a converter run my whole shop?
Yes—if correctly sized and machines are started sequentially.
Does asset finance affect my bank overdraft?
No. Asset finance is typically separate from bank facilities.
Phase converters sit at the intersection of electrical infrastructure and machinery finance, an area many lenders misunderstand.
Gable Business Finance offers:
Specialist understanding of woodworking workshops
Funding for new and used phase converters
Experience structuring finance with machinery purchases
Flexible options: HP, Finance Lease, Operating Lease, Refinance, Debtor Finance
Clear, simple documentation
The ability to beat dealer finance in many cases
Phase converters unlock access to industrial-grade woodworking machinery, better performance, and lower equipment costs—without expensive power upgrades.
With the right finance structure, UK workshops can modernise, expand, and compete using 3-phase machinery on single-phase power.
By working with Gable Business Finance, you gain access to tailored, competitive funding solutions designed specifically for phase converters and woodworking electrical infrastructure.