Finance Assets arranges asset finance for pharmaceutical manufacturers, helping UK businesses fund tablet presses, capsule fillers, blister packers, sterile processing equipment and laboratory instruments, new or used.
Asset finance for pharmaceutical manufacturing spreads the cost of production and laboratory equipment over 3 to 7 years, so a manufacturer can add capacity, take on a new product or replace ageing machines without tying up the cash needed for raw materials, stock and validation. We arrange pharmaceutical equipment finance for licensed manufacturers, contract manufacturers and supplement makers.
Written by Marcus Wright, founder of Bolton Business Finance Ltd, in financial services since 2008 and a commercial finance broker since 2019. Last reviewed September 2026.
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The short version
- Asset finance lets pharmaceutical manufacturers spread the cost of production, packaging and laboratory equipment over 3 to 7 years.
- Branded tablet presses, capsule fillers and blister packers sell second hand around the world, which makes them easier to fund.
- Installation and qualification can often be included, but lenders limit how much of a deal can be soft costs.
- Cleanroom fit-out fixed to the building is harder to fund on asset finance, and is often covered by a business loan alongside it.
- Finance Assets arranges pharmaceutical equipment finance for limited companies and LLPs, and for sole traders and partnerships on agreements over £25,000.
| Item | Detail |
|---|---|
| Equipment covered | Solid dose, liquids, sterile processing, packaging, inspection, laboratory and utilities equipment |
| Deal sizes | From a single laboratory instrument to a complete packaging line |
| Terms | Usually 3 to 5 years on laboratory and used equipment, and up to 7 years on new production lines |
| Paid upfront | Hire purchase: often a 10% deposit plus VAT. Leases: usually 1 to 3 rentals in advance |
| New or used | Both, including used machines from manufacturers and specialist dealers in the UK and Europe |
| Who we help | Limited companies and LLPs, plus sole traders and partnerships on business agreements over £25,000 |
Pharmaceutical equipment we finance
Lenders will fund most of the equipment a pharmaceutical manufacturer uses, provided it comes from an established maker and can be removed and sold if needed.
| Area | Examples |
|---|---|
| Solid dose | Granulators, fluid bed dryers, blenders, rotary tablet presses, capsule fillers and coating pans |
| Liquids and semi-solids | Mixing vessels, homogenisers, filling and capping lines and tube fillers |
| Sterile manufacturing | Autoclaves, isolators, freeze dryers and vial and ampoule filling lines |
| Packaging and inspection | Blister packers, cartoners, labellers, checkweighers and vision inspection systems |
| Laboratory and quality control | HPLC systems, dissolution testers, stability chambers, spectrometers and analytical balances |
| Utilities and clean areas | Purified water systems, compressed air, modular cleanrooms and environmental monitoring |
How pharmaceutical manufacturers use asset finance
Most pharmaceutical manufacturers use asset finance to add capacity when a new product or customer is confirmed, and to keep equipment current.
- Adding capacity for new products. A new product licence or contract manufacturing award often needs extra presses, fillers or packaging capacity, and finance lets you add it once the work is confirmed.
- Replacing ageing machines. Older presses and packers run slower, need more attention to keep in a validated state and can become hard to source parts for.
- Automating packaging and inspection. Faster blister lines, checkweighers and vision systems cut labour and rejects on the most labour-intensive stage.
- Equipping quality control laboratories. Analytical instruments are replaced every few years as methods and software change, and a master agreement can add each one as it is bought.
- Releasing cash from owned equipment. Machines you own outright can be refinanced to fund new equipment or cover stock and validation work.
Finance options for pharmaceutical manufacturers
Most pharmaceutical manufacturers buy production equipment on hire purchase and lease laboratory instruments that are replaced 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 equipment after the last one | Tablet presses, fillers and packaging lines you will run for many years |
| Finance lease | Rentals with VAT added to each one. The lender owns the equipment | Keeping the deposit and VAT outlay down on high-value lines |
| Operating lease | Lower rentals set around the expected resale value. You hand the equipment back at the end | Laboratory instruments and standard equipment replaced on a cycle |
| Refinance | A lender buys equipment you own and sells it back to you over a fixed term | Raising cash for new equipment, stock or working capital |
Hire purchase for pharmaceutical equipment
Hire purchase for pharmaceutical equipment is the most common choice for production machinery, because a validated tablet press or blister line is usually kept for many years once it is qualified. You pay a deposit, often around 10% plus the VAT, then fixed monthly payments, and the equipment becomes yours after the final payment and a small option fee. A balloon can lower the monthly cost on branded machines that hold their value.
Finance lease for pharmaceutical equipment
A finance lease for pharmaceutical equipment keeps upfront costs down, because VAT is added to each rental instead of being paid on the full price at the start. The lender owns the equipment. At the end of the main term you can usually keep it on a small secondary rental, or sell it for the lender and keep most of the proceeds.
Operating lease for pharmaceutical equipment
An operating lease for pharmaceutical equipment sets lower rentals around what the equipment should be worth at the end, and you hand it back when the term finishes. It suits laboratory instruments and standard equipment that you expect to replace on a cycle. It is rarely offered on production lines, because the cost of requalifying a replacement makes most manufacturers keep them.
Refinancing pharmaceutical equipment you own
If you own equipment outright, a sale and hire purchase back lets a lender buy it and sell it back to you over a fixed term, so it stays in production and in its validated state. Lenders advance more against branded presses, fillers and packers than against older or custom-built equipment.
Validation, cleanrooms and soft costs
Buying a machine is only part of the cost in pharmaceutical manufacturing. Before it can make product for sale, it has to be installed, qualified through installation, operational and performance qualification (IQ, OQ and PQ), and the process validated. On a complex line these soft costs can add a large share to the price.
Lenders will usually include installation and qualification where they appear on the supplier’s invoice, but most limit how much of an agreement can be soft costs. Cleanroom walls, ceilings and air handling fixed to the building are harder, because they cannot be removed and sold. Modular cleanrooms that can be taken down are easier to fund, and larger fit-outs are often covered by a business loan alongside the asset finance.
The machines themselves usually hold their value well. Branded tablet presses, capsule fillers and blister packers from makers such as Fette, Korsch, IMA and Uhlmann sell second hand to pharmaceutical, veterinary and supplement makers around the world, which lets lenders offer longer terms and balloons on them.
VAT and tax on pharmaceutical equipment finance
Hire purchase means paying the VAT up front and may bring capital allowances, while leasing spreads the VAT across the rentals.
| Type | VAT | Tax treatment |
|---|---|---|
| Hire purchase | VAT on the full price is payable at the start, and a VAT-registered company normally recovers it on its next return | The company counts as the owner for tax, so it may be able to claim capital allowances, such as full expensing or the annual investment allowance on new equipment |
| Finance lease | VAT is charged on each rental and recovered through normal returns | Rentals are usually deductible from profits |
| Operating lease | VAT is charged on each rental | Rentals are usually deductible, and the lender takes the capital allowances |
Check with your accountant how each option fits your company’s tax position before you commit.
Blister packing line finance costs: a worked example
A new blister packing line at £310,000 costs about £5,792 a month on a 5-year hire purchase, or about £4,970 a month with a 20% balloon.
| Item | Standard | With 20% balloon |
|---|---|---|
| Price including installation (excl. VAT) | £310,000 | £310,000 |
| Deposit (10%) | £31,000 | £31,000 |
| VAT paid upfront | £62,000 | £62,000 |
| Monthly payment (60 months) | £5,791.58 | £4,969.56 |
| Final balloon payment | None | £62,000 |
| Total interest | £68,495 | £81,174 |
The balloon lowers the monthly payment by about £822 but adds around £12,679 of interest. It can help while a new product is still being validated and sales have not started, but you need a plan to pay or refinance the £62,000 at the end.
Illustration calculated in September 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 pharmaceutical manufacturers
Lenders look at the usual financial documents, plus your licences, your customers and the products the new equipment will make.
- Accounts and bank statements. The last two years of filed accounts, recent management accounts and three to six months of business bank statements.
- Licences and inspections. Your manufacturer’s licence from the MHRA where you need one, and the outcome of recent inspections. Supplement makers, which are regulated as food, show their food safety certification instead.
- Customers and contracts. For contract manufacturers, the supply agreements behind the new equipment and how much of your revenue comes from each customer.
- Timing of first sales. When the equipment arrives, when validation should finish and when it will start earning. A long gap between delivery and first sales matters to lenders.
- Equipment details. The make, model and supplier, and for used equipment its age, service history and where it has come from.
- Existing finance. A list of equipment already on finance and what is left to pay.
Related guides
Who we can help
We arrange asset finance for pharmaceutical manufacturers, contract manufacturers, supplement makers and pharmacy businesses 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.
Pharmaceutical equipment finance FAQs
Can installation and validation costs be financed?
Often, in part. Most lenders will include installation and qualification where they appear on the supplier’s invoice, but they limit how much of the agreement can be costs that cannot be resold. A large validation project run by a separate consultancy may need a business loan alongside the asset finance.
Can a cleanroom be financed?
It depends on how it is built. Modular cleanrooms that can be taken down and moved can be funded on asset finance. Walls, ceilings and air handling built into the premises become part of the building, so they are usually funded with a business loan or, if you own the building, commercial property finance.
Can I finance used pharmaceutical equipment?
Yes. Used tablet presses, capsule fillers and blister packers are funded regularly, because they have an active second-hand market. Lenders want the make, model, serial number, age and service history. Remember to budget for requalifying the equipment, which may need separate funding.
Do I need an MHRA licence to get finance?
It is not a requirement for finance itself, but a lender funding a medicines manufacturer will expect it to hold the licences its work needs. Supplement makers are regulated as food and do not need an MHRA manufacturer’s licence, so lenders look at their food safety certification and customer base instead.
Can a pharmacy get asset finance?
Yes. Dispensing robots are the most common item, because they are valuable and have a resale market. Pharmacy fit-outs, consultation rooms and delivery vans can be funded too, although fit-outs are often better suited to a business loan. Pharmacy companies can apply at any amount, and sole traders and partnerships on agreements over £25,000.
Can I raise cash against pharmaceutical equipment I already own?
Yes. Through a sale and hire purchase back, a lender buys equipment you own outright and sells it back to you over a fixed term, so it stays in production and in its validated state. The amount depends on the equipment’s value, age and make. Manufacturers use it to fund new equipment or add working capital.
Get a pharmaceutical equipment finance quote
Tell us about the equipment
Send us the equipment, the prices and whether it is new or used, plus a few details about the products or customers it is for. 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.