Finance Assets arranges hire purchase and leasing for UK engineering businesses buying new or used grinding machines, from surface grinders to CNC cylindrical and tool grinders.
Grinding machine finance spreads the cost of precision grinding equipment over 2 to 7 years, so a subcontract engineer, toolmaker or manufacturer can bring grinding in-house or add capacity without a large cash outlay. 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.
On this page
The short version
- Grinding machine finance lets a business spread the cost of a grinder 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.
- Quality grinders from established makers hold their value well, so used machines are widely funded.
- Finance Assets arranges grinding machine finance for limited companies and LLPs, and for sole traders and partnerships on agreements over £25,000.
| Item | Detail |
|---|---|
| Equipment covered | Surface, cylindrical, centreless, tool and cutter, gear, creep feed and double-disc grinders, plus loaders and filtration |
| Terms | Usually 2 to 5 years, and up to 7 years for new CNC machines |
| Paid upfront | Hire purchase: often a 10% deposit plus VAT. Leases: usually 1 to 3 rentals in advance |
| New or used | Both. Used and rebuilt grinders from established makers are widely funded |
| Extra costs | Installation, coolant filtration, wheel dressers, probing, automation and training can often be included |
| Who we help | Limited companies and LLPs, plus sole traders and partnerships on business agreements over £25,000 |
Grinding machines we finance
Lenders will fund most grinding equipment used in production or toolmaking, as long as it comes from an identifiable supplier on a clear quote.
| Machine type | Examples |
|---|---|
| Surface grinders | Manual, semi-automatic and CNC surface grinders, rotary table grinders and creep feed grinders |
| Cylindrical grinders | Universal, external (OD) and internal (ID) cylindrical grinders, manual and CNC |
| Production grinders | Centreless grinders, double-disc grinders and gear grinders for high-volume parts |
| Tool grinders | CNC tool and cutter grinders for making and regrinding drills, end mills and form tools, and jig grinders |
| Ancillary equipment | Coolant filtration, mist extraction, wheel balancers and dressers, in-process gauging and robot loaders |
We regularly see machines from manufacturers such as Jones and Shipman, Studer, Kellenberger, Okamoto, Walter, ANCA and Junker. For the other machine tools we fund, see manufacturing equipment finance.
New or used grinding machines
Grinders are built for accuracy and, if looked after, stay in service for decades. That gives them an active second-hand market, and lenders are generally comfortable funding used machines.
- Rebuilt and retrofitted machines. Many older manual grinders are rebuilt or fitted with new CNC controls. Lenders will fund these when the work is done by an established specialist with a warranty.
- Accuracy, not age. On a used precision grinder, what matters to you is whether it still holds tolerance. A test certificate or inspection from the dealer reassures lenders as well.
- New CNC machines. Modern CNC cylindrical and tool grinders cost more but run unattended for longer. They can be funded over up to 7 years, which keeps the monthly payment in line with the work they bring in.
What lenders look at on grinding machines
- Brand and resale. Grinders from established European and Japanese makers hold their value well, which supports longer terms.
- Installation. Precision grinders can need levelling, a solid floor and a stable temperature. Lenders will usually include installation, up to a set share of the total.
- Automation. Robot loaders, bar feeders and in-process gauging are usually funded alongside the machine, although they have less resale value on their own.
- Your work. Lenders may ask what the machine will produce and for whom, particularly if one customer or sector accounts for most of your turnover.
Hire purchase, finance lease and operating lease compared
Hire purchase suits a grinder you will keep for most of its working life, which for a precision machine can be a long time. A lease suits you better if you want to spread the VAT 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 | Grinders you will run for many years |
| 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 | Expensive CNC machines where spreading the VAT helps cash flow |
| Operating lease | You rent the machine for part of its life, then hand it back or upgrade. Mostly available on new CNC machines from major makers | Production grinders you expect to replace as work changes |
Hire purchase for grinding machines
Hire purchase is the usual choice for grinding machines. 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 grinding 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 grinding 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 quality grinders keep their value, operating leases can give noticeably lower rentals on new CNC machines. At the end you hand the machine back, extend the lease or upgrade.
Grinding machine finance costs: a worked example
A £180,000 new CNC universal cylindrical grinder, including installation and coolant filtration, costs about £3,363 a month on a 5-year hire purchase, or about £2,606 a month over 7 years.
| Item | 5 years | 7 years |
|---|---|---|
| Price (excl. VAT) | £180,000 | £180,000 |
| Deposit (10%) | £18,000 | £18,000 |
| VAT paid upfront | £36,000 | £36,000 |
| Monthly payment | £3,362.85 | £2,606.43 |
| Total interest | £39,771 | £56,940 |
The longer term lowers the monthly payment by about £756 but adds around £17,169 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 equipment.
VAT and tax on grinding 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.
What lenders ask for
Most grinding 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 from the supplier, showing the machine, its serial number and year if used, and installation and ancillaries separately
- Photo ID and address history for each director
- Details of any existing finance agreements
Related guides
Who we can help
We arrange grinding 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.
Grinding machine finance FAQs
Can I finance a used surface grinder?
Yes. Used grinders from established makers are widely funded, especially from dealers who inspect and warranty them. A small manual surface grinder may fall below some lenders’ minimum deal size, so it can help to combine it with other equipment. We can help limited companies and LLPs at most sizes, and sole traders and partnerships on agreements over £25,000.
How much does it cost to finance a CNC grinder?
It depends on the machine, the term and your business. As an illustration, a £180,000 CNC cylindrical grinder costs about £3,363 a month over 5 years on hire purchase at 9%, after a 10% deposit and the VAT paid upfront, or about £2,606 a month over 7 years.
Can a rebuilt or retrofitted grinder be financed?
Usually, yes, when the rebuild or CNC retrofit is carried out by an established specialist who provides a warranty. Lenders look at the supplier’s reputation as much as the machine’s original age.
Can installation and automation be included?
Usually, yes. Most lenders will include installation, coolant filtration, wheel dressing equipment, gauging and robot loaders alongside the grinder, usually up to a set share of the total. Grinding wheels and coolant are paid for separately as running costs.
Is it better to lease or buy a grinding machine?
Hire purchase usually works out better for a grinder you will keep for many years, because you own it at the end and may be able to claim capital allowances. A lease can suit a production grinder you expect to replace, or a business that wants to spread the VAT. Finance Assets compares both for each deal.
Can a new engineering business get grinding 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 work the machine will be used for. Directors with an engineering background and existing customers both help.
Get a grinding 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.