Finance Assets arranges asset finance for aerospace manufacturers and suppliers, helping UK firms fund 5-axis machining centres, inspection equipment, furnaces and composites kit.
Asset finance for aerospace manufacturers spreads the cost of high-value machinery over 3 to 7 years, so cash stays free for materials, certification and the long payment terms common in the aerospace supply chain. It suits machine shops winning work on a new aircraft programme, adding capacity for a Tier 1 customer, or bringing a special process in house.
Written by Marcus Wright, founder of Bolton Business Finance Ltd, in financial services since 2008 and a commercial finance broker since 2019. Last reviewed October 2026.
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The short version
- Asset finance lets aerospace manufacturers spread the cost of machine tools, inspection equipment and furnaces over 3 to 7 years.
- High-value machines with a strong used market, such as 5-axis machining centres, can usually be funded over longer terms.
- Lenders look at accreditations, customer concentration and the aircraft programmes behind the order book.
- Stage payments to the machine builder can often be funded before delivery.
- Finance Assets arranges asset finance for aerospace manufacturers trading as limited companies and LLPs, and for sole traders and partnerships on agreements over £25,000.
| Item | Detail |
|---|---|
| Equipment covered | 5-axis machining centres, mill-turn machines, grinders, EDM, CMMs, NDT equipment, heat treatment furnaces, autoclaves and software |
| Deal size | From a single inspection machine to a multi-machine cell |
| Terms | Usually 3 to 5 years, and up to 7 years on some new machine tools |
| Paid upfront | Hire purchase: often a 10% deposit plus VAT. Leases: usually 1 to 3 rentals in advance |
| New or used | Both, including used machine tools from dealers and other manufacturers |
| Who we help | Limited companies and LLPs, plus sole traders and partnerships on business agreements over £25,000 |
Equipment we finance for aerospace manufacturers
Lenders will fund most of the equipment an aerospace supplier relies on, from the machines that cut the parts to the systems that prove they are right.
| Equipment group | Examples |
|---|---|
| Machining | 5-axis machining centres, mill-turn machines, horizontal machining centres and CNC lathes |
| Finishing and special machining | Grinding machines, wire and spark EDM, laser drilling and honing |
| Inspection and test | CMMs, optical scanners and industrial X-ray, ultrasonic and other NDT equipment |
| Heat treatment and processing | Vacuum and heat treatment furnaces, surface treatment lines and shot peening |
| Composites | Autoclaves, ovens, ply cutters, clean rooms and layup tooling |
| Fabrication | Welding equipment, laser cutters and sheet metal forming |
| Software and IT | CAD and CAM software, quality management systems and IT |
How aerospace manufacturers use asset finance
Aerospace suppliers usually need new machines months before the parts they will make are delivered and paid for.
- Winning a new programme. Funding the machines and inspection kit for a work package before the first production order ships.
- Adding capacity. Putting another machine alongside an existing cell as build rates rise.
- Bringing a process in house. Funding heat treatment, NDT or finishing equipment rather than paying subcontractors and waiting on their lead times.
- Upgrading for accuracy. Replacing older machines that can no longer hold the tolerances newer parts need.
- Releasing cash. Refinancing machines the business owns outright while customers pay on long terms.
Finance options for aerospace manufacturers
Aerospace manufacturers mostly buy machine tools on hire purchase, and lease inspection equipment and IT that is upgraded more often. Our types of asset finance guide covers each option in more depth.
| Type | How it works | Suits |
|---|---|---|
| Hire purchase | A deposit, then fixed monthly payments. You own the machine after the last one | Machine tools you will run for many years |
| Finance lease | Rentals with VAT added to each one. The lender owns the machine | Spreading the VAT on a large machine or cell |
| Operating lease | Lower rentals priced around the expected resale value. You hand it back at the end | Inspection equipment and IT you upgrade regularly |
| Sale and hire purchase back | A lender buys machines you own and sells them back over a fixed term | Releasing cash tied up in existing machines |
Hire purchase for aerospace manufacturers
Hire purchase is the usual way to buy machining centres, grinders and furnaces. You pay a deposit, often around 10% plus the VAT, then fixed monthly payments, and the machine is yours after the last one. You are treated as the owner for tax from the start, so you may be able to claim capital allowances, and a balloon payment can lower the monthly cost on machines that hold their value.
Finance lease for aerospace manufacturers
A finance lease suits a large machine or a full cell, because VAT is added to each rental instead of being paid upfront on the whole price. The lender keeps ownership. At the end you can usually keep the machine on a small secondary rental, or sell it and receive most of the proceeds.
Operating lease for aerospace manufacturers
An operating lease prices the rentals around what the equipment should be worth at the end, so the monthly cost is lower and the lender takes the resale risk. It works well for CMMs, scanners and software-heavy equipment that moves on quickly, and for machines needed for a work package with a fixed life.
Refinancing machines you already own
A sale and hire purchase back lets a lender buy machines you own outright and sell them back to you over a fixed term, so they stay on the shop floor while the cash comes back into the business. It is often used to fund the start of a new programme or to bridge the gap while customers pay on 60 to 90 day terms.
VAT and tax for aerospace manufacturers
A VAT-registered manufacturer can usually reclaim the VAT on machinery in full. On hire purchase, VAT on the full price is usually paid at the start and reclaimed on the next return, and many lenders can defer it for a few months. On a lease, VAT is added to each rental. With hire purchase you may be able to claim capital allowances, and lease rentals are usually an allowable business expense. Check the tax treatment with your accountant.
Aerospace machinery finance costs: a worked example
A new 5-axis machining centre at £350,000 and a CMM at £90,000, £440,000 in total, cost about £8,220 a month on a 5-year hire purchase, or about £7,054 a month with a 20% balloon.
| Item | Standard | With 20% balloon |
|---|---|---|
| Machinery price (excl. VAT) | £440,000 | £440,000 |
| Deposit (10%) | £44,000 | £44,000 |
| VAT paid upfront | £88,000 | £88,000 |
| Monthly payment (60 months) | £8,220.31 | £7,053.57 |
| Final balloon payment | None | £88,000 |
| Total interest | £97,219 | £115,214 |
The balloon frees up about £1,167 a month, in exchange for about £17,996 more interest over the five years. On a deal this size the VAT is a large sum, so a VAT deferral or a finance lease can make a real difference to cash flow in the first quarter.
Illustration calculated in October 2026, assuming an interest rate of 9% a year. It is not a quote. Your rate depends on your trading history, credit profile and the equipment.
What lenders look for in aerospace manufacturers
Lenders look at the usual financial documents, plus the things that show how secure an aerospace supplier’s work is.
- Your last 2 years of filed accounts, or management accounts and a forecast for newer firms
- Your last 3 to 6 months of business bank statements
- Your main customers, how long you have supplied them, and any long-term agreements
- The aircraft programmes your work is on and the expected build rates
- Accreditations such as AS9100 and Nadcap approvals
- Supplier quotes, plus photo ID and address history for each director, member or partner
Related guides
Who we can help
We arrange asset finance for aerospace manufacturers and suppliers that trade as UK limited companies and LLPs, and for sole traders and partnerships on agreements over £25,000 that are for business purposes. We are not authorised by the FCA, so we cannot arrange agreements of £25,000 or less for sole traders or partnerships of two or three partners, or finance for personal use.
Asset finance for aerospace manufacturers FAQs
Can aerospace suppliers finance 5-axis machining centres?
Yes. 5-axis machining centres and mill-turn machines from the major builders are among the most widely funded machine tools, because they hold their value well on the used market. Lenders usually fund them over 3 to 5 years, and sometimes longer on new machines, and tooling, probing, pallet systems and installation can often go on the same agreement.
Does AS9100 accreditation help with asset finance?
It helps. Lenders cannot easily judge an aerospace order book, so AS9100 certification, Nadcap approvals for special processes and approved supplier status with a prime or Tier 1 customer all show that the work is established. They do not replace accounts, but they make a lender more comfortable with a large machine on a long term.
What if most of our work comes from one customer?
Many aerospace suppliers rely on one or two primes or Tier 1 customers, and lenders are used to it. They will ask how long the relationship has run, whether there are long-term agreements in place and how the work is spread across aircraft programmes. A longer customer history and a clear programme pipeline reduce the concern.
Can we finance CMMs and inspection equipment?
Yes. Coordinate measuring machines, optical and laser scanners, surface testers and non-destructive testing equipment can all be funded, on their own or alongside the production machines they support. Inspection equipment is often leased so it can be upgraded as customer requirements change.
Can a machine be funded before it is delivered and installed?
Often, yes. Many lenders can pay stage deposits to the machine builder before delivery and start the main agreement once the machine is installed and commissioned. This keeps cash in the business during a long lead time, which is common on large 5-axis and specialist machines.
Can we release cash from machines we already own?
Yes. Through a sale and hire purchase back, a lender buys machines you own outright and sells them back to you over a fixed term, so they stay on your shop floor. Aerospace suppliers use it to fund new capacity for a programme win, or to free up working capital while customers pay on long terms.
Get an asset finance quote for your aerospace business
Tell us what you want to finance
Send us the machines or equipment, the prices and a few details about your customers and programmes. We will come back with the options that are realistic and what they are likely to cost.
About the author
Marcus Wright is the owner and founder of Bolton Business Finance Ltd, which trades as Finance Assets. He has worked in financial services since 2008, beginning his career at Santander, and has been a commercial finance broker since March 2019.
He founded Bolton Business Finance in 2020 to give businesses access to the whole lending market rather than one bank’s own product range. The firm is a member of the National Association of Commercial Finance Brokers and works with a panel of 135+ lenders. Call 0161 546 9128.
Finance Assets is a trading name of Bolton Business Finance Ltd, an independent commercial finance brokerage, not a lender. We are not authorised by the Financial Conduct Authority and can only complete non-regulated introductions. All lending is for business purposes only. Registered address: Westgate House, 1 Westgate Avenue, Bolton, Greater Manchester, BL1 4RF. Company number 12495909.