When an apprentice finally gained his freedom, he still had to establish an independent business. How much capital did he need to set up on his own and what sources could he tap? What hazards did he face and how far could they be reduced? How did his prospects of advancement compare with someone who chose a profession or other career?

Capital requirements

The minimum amount initially required varied according to the type and area of business. Commerce required relatively little fixed capital; established markets with a sound credit structure demanded a smaller outlay, as did the short-haul and carrying trades which had greater liquidity and a faster turnover. Several successful merchants began with modest stakes and merchants who earned commission as factors could manage with less equity. The European trades nevertheless demanded deep pockets of £2,000–5,000. In 1689, a third share of a two-year partnership in the wine trade in Malaga was £2,451. Substantial reserves were needed to offer the credit which was essential for sales, to weather seasonal fluctuations, delays and losses. Factors could not survive without trading on their own account; principals expected their commission agents to advance funds against goods, often without adequate security, and sought to circumvent the cost of middlemen by breaking up shipments into smaller units.

Long-distance trades tied up capital for several years; stock could be immobilized waiting for the Spanish fleet and greater risks demanded greater assets.