Finance Assets arranges hire purchase and leasing for UK businesses buying new or used EDM machines, including wire EDM, sinker EDM and EDM hole drilling machines.
EDM machine finance spreads the cost of an electro-discharge machine over 2 to 7 years, so a toolmaker or precision engineer can add spark erosion capacity without tying up cash needed for steel, electrodes and wages. We are a broker, not a lender, so we compare quotes from our lender panel rather than offering one bank’s product.
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
- EDM machine finance lets a business spread the cost of a new or used electro-discharge machine over 2 to 7 years.
- With hire purchase, the business owns the machine after the final payment.
- Finance and operating leases keep upfront costs lower, but the machine stays with the lender.
- Established EDM brands hold their value well, so lenders are comfortable funding used machines.
- Finance Assets arranges EDM machine finance for limited companies and LLPs, and for sole traders and partnerships on agreements over £25,000.
| Item | Detail |
|---|---|
| Machines covered | Wire EDM, sinker (die-sink) EDM, EDM hole drilling machines and graphite electrode mills |
| Terms | Usually 2 to 5 years, and up to 7 years for new machines from established manufacturers |
| Paid upfront | Hire purchase: often a 10% deposit plus VAT. Leases: usually 1 to 3 rentals in advance |
| New or used | Both. Used machines from dealers are widely funded, and some lenders fund imported machines |
| Extra costs | Installation, chillers, automation, CAM software and training can often be included |
| Who we help | Limited companies and LLPs, plus sole traders and partnerships on business agreements over £25,000 |
EDM machines we finance
Electro-discharge machining, also called spark erosion, shapes hardened steel and other conductive materials using controlled electrical sparks rather than a cutting tool. Lenders will fund every main type of EDM machine, as long as it is used in your business and comes from an identifiable supplier.
| Machine | What it does | Typical users |
|---|---|---|
| Wire EDM | Cuts profiles through hardened material with a thin, electrically charged wire | Press tool makers, punch and die makers, aerospace and medical subcontractors |
| Sinker EDM | Burns a shaped electrode into the workpiece to form cavities and fine detail | Mould toolmakers, die casters and precision toolrooms |
| EDM hole drilling | Drills small, deep holes and wire start holes in hard or awkward materials | Turbine and aerospace component makers, and toolrooms supporting wire EDM |
| Electrode mills | High-speed graphite or copper milling machines that make sinker EDM electrodes | Mould shops running sinker EDM in-house |
We regularly see machines from manufacturers such as Mitsubishi, Sodick, Makino, Fanuc and GF Machining Solutions, and lenders know these brands well. For the other machine tools and fabrication equipment we fund, see manufacturing equipment finance.
What lenders look at on EDM machines
EDM machines are generally straightforward to fund, but a few points come up on almost every deal.
- Resale value. Well-maintained EDM machines from established brands keep a healthy second-hand value, which is why lenders will fund used machines and why operating leases are available on some new ones.
- Consumables are a running cost. Brass wire, filters, deionising resin and electrodes are paid for as you go. An initial stock can sometimes be included at the start, but ongoing consumables are not financed.
- Installation and environment. EDM machines need a level floor, a stable temperature and the right power supply. Installation, chillers and air conditioning for the machine area can often go on the same agreement.
- Automation. Robot loading, pallet changers and electrode changers can be financed alongside the machine, which helps a toolroom run unmanned overnight.
- Customer concentration. Toolmakers often rely on a small number of large customers. Lenders may ask about your order book and how dependent you are on any one of them.
New, used and imported EDM machines
- New machines from UK dealers and manufacturers get the longest terms and usually the lowest rates.
- Used machines from dealers are widely funded. Some lenders also fund auction or private purchases after an inspection or valuation. Lenders cap the age of the machine at the end of the agreement, so an older EDM may get a shorter term.
- Imported machines can be funded too. Some lenders pay overseas suppliers directly and can cover deposits, shipping and installation.
Hire purchase, finance lease and operating lease compared
Hire purchase suits an EDM machine you will keep for most of its working life. A lease suits you better if you would rather not own the machine, or plan to upgrade. Our types of asset finance guide covers each option in more depth.
| Option | How it works | Best for |
|---|---|---|
| Hire purchase | You pay a deposit and fixed monthly payments, and own the machine after the final payment and any option fee | Machines you will keep for 7 years or more |
| Finance lease | You rent the machine for most of its working life. At the end you extend at a low rent, or sell it for the lender and keep most of the proceeds | Keeping upfront costs low without owning the machine |
| Operating lease | You rent the machine for part of its life, then hand it back or upgrade. Mostly available on established brands with strong resale values | Upgrading every 3 to 5 years |
Hire purchase for electro-discharge machines
Hire purchase is the usual choice for an EDM machine you plan to keep. You pay a deposit, usually 10% plus the VAT, then fixed monthly payments, and ownership passes to you after the final payment and a small option-to-purchase fee. As the owner for tax purposes, the business may be able to claim capital allowances on the machine.
Finance lease for electro-discharge machines
A finance lease keeps the upfront cost to a few rentals, and VAT is spread across the rentals rather than paid at the start. The lender owns the machine throughout. At the end of the main term you can keep using it for a low secondary rent, or sell it on the lender’s behalf and receive most of the sale proceeds.
Operating lease for electro-discharge machines
An operating lease sets the rentals against what the machine is expected to be worth at the end of the term, so the lender carries the resale risk. Because established EDM brands hold their value, operating leases are available on many new wire and sinker machines. At the end you hand the machine back, extend the lease or upgrade to a newer model.
EDM machine finance costs: a worked example
A £120,000 new wire EDM machine, including installation and a chiller, costs about £2,242 a month on a 5-year hire purchase, or about £1,738 a month over 7 years.
| Item | 5 years | 7 years |
|---|---|---|
| Machine price (excl. VAT) | £120,000 | £120,000 |
| Deposit (10%) | £12,000 | £12,000 |
| VAT paid upfront | £24,000 | £24,000 |
| Monthly payment | £2,241.90 | £1,737.62 |
| Total interest | £26,514 | £37,960 |
The longer term lowers the monthly payment by about £504 but adds around £11,446 of interest. Many lenders will also defer the VAT for a few months.
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 machine.
VAT and tax on EDM machine finance
| Option | VAT | Usual tax treatment |
|---|---|---|
| Hire purchase | Paid on the full price at the start, reclaimable if you are VAT registered | You may be able to claim capital allowances, such as the Annual Investment Allowance, and the interest is deductible |
| Finance lease | Added to each rental | Rentals are usually deductible |
| Operating lease | Added to each rental | Rentals are usually deductible |
Tax depends on your circumstances, so check the treatment with your accountant.
How EDM machine finance works
- Tell us about the machine, the price, the supplier and your business
- We match you to lenders on our panel that fund EDM machines, and come back with the options
- The lender makes a credit decision once it has your accounts and bank statements
- You sign the agreement, and the lender pays the supplier directly
- The machine is installed and your payments start
What lenders ask for
Most EDM machine finance applications need the following.
- Your last 2 years of filed accounts, or management accounts and a forecast if you are newer
- Your last 3 to 6 months of business bank statements
- A quote or pro forma invoice from the supplier, showing the machine, installation and any automation separately
- Photo ID and address history for each director
- Details of any existing finance agreements, and of your main customers on larger deals
Related guides
Who we can help
We arrange EDM machine finance for 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.
EDM machine finance FAQs
Can I finance a used wire EDM machine?
Yes. Most lenders fund used wire and sinker EDM machines bought from dealers, and some will fund auction or private purchases after an inspection or valuation. Lenders usually cap the age of the machine at the end of the agreement, so an older EDM may be offered a shorter term than a new one.
How much does it cost to finance an EDM machine?
It depends on the machine, the term and your business. As an illustration, a £120,000 wire EDM machine costs about £2,242 a month over 5 years on hire purchase at 9%, after a 10% deposit and the VAT paid upfront, or about £1,738 a month over 7 years.
Is it better to lease or buy an EDM machine?
Hire purchase usually works out better for a machine you will keep for most of its working life, because you own it at the end and may be able to claim capital allowances. An operating lease can suit a toolroom that wants to move to newer technology every few years, as the lender takes the resale risk. Finance Assets compares both options for each deal.
Can automation and installation be included in EDM finance?
Often, yes. Many lenders will include installation, chillers, robot loading, pallet changers and operator training alongside the machine, usually up to a set share of the total. Ongoing consumables such as wire, filters and resin are paid for separately as a running cost.
Can a new toolmaking business get EDM machine finance?
Yes, although lenders look more closely at newer companies. They may ask for a larger deposit, a personal guarantee from the directors, or evidence of the orders the machine will be used for. Directors with a track record in toolmaking and a clear customer base both help.
Can I release cash from EDM machines I already own?
Yes. Asset refinance lets a business raise funds against machines it owns outright, or restructure existing finance agreements. Because EDM machines hold their value well, they are often good security for refinance. The amount available depends on the machine’s current value, its age and how the lender views the business.
Get an EDM machine finance quote
Tell us what you want to finance
Send us the machine, the price and a few details about your business. 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.