Finance Assets arranges hire purchase and leasing for UK businesses buying industrial kilns and furnaces, from ceramic and glass kilns to metal melting, heat treatment and curing ovens.
Kiln and furnace finance spreads the cost of thermal processing equipment over 2 to 7 years, so a foundry, heat treater, potter or manufacturer can replace an ageing unit or cut energy costs 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.
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The short version
- Kiln and furnace finance lets a business spread the cost over 2 to 7 years.
- With hire purchase, the business owns the kiln or furnace after the final payment.
- Installation is often a large part of the cost, and lenders will usually fund some of it alongside the equipment.
- Standard units from established makers are easier to fund than bespoke, built-in furnaces.
- Finance Assets arranges kiln and furnace finance for limited companies and LLPs, and for sole traders and partnerships on agreements over £25,000.
| Item | Detail |
|---|---|
| Equipment covered | Ceramic and glass kilns, metal melting furnaces, heat treatment furnaces, annealing and curing ovens, and their burners, controls and extraction |
| Terms | Usually 2 to 5 years, and up to 7 years for large new installations |
| Paid upfront | Hire purchase: often a 10% deposit plus VAT. Leases: usually 1 to 3 rentals in advance |
| New or used | Both, although used finance is easier on standard, freestanding units from known makers |
| Extra costs | Delivery, installation, commissioning and refractory lining can often be included, usually up to a set share of the total |
| Who we help | Limited companies and LLPs, plus sole traders and partnerships on business agreements over £25,000 |
Kilns and furnaces we finance
Lenders will fund most thermal processing equipment used in a business, as long as it comes from an identifiable supplier on a clear quote.
| Equipment type | Examples |
|---|---|
| Ceramic and pottery kilns | Electric and gas kilns, shuttle kilns, truck or bogie kilns, and tunnel and roller kilns for volume production |
| Glass kilns and furnaces | Fusing and slumping kilns, glass melting furnaces and annealing lehrs |
| Metal melting furnaces | Induction furnaces, crucible furnaces and holding furnaces for foundries and die casters |
| Heat treatment furnaces | Vacuum furnaces, sealed quench furnaces, tempering, carburising and nitriding furnaces |
| Industrial ovens | Annealing, curing, drying and powder coating ovens |
| Ancillary equipment | Burners, temperature controls and data logging, quench tanks, fume extraction and heat recovery systems |
For the other production equipment we fund, see manufacturing equipment finance.
Installation and site works
On larger kilns and furnaces, installation can be a big part of the total cost. How a lender treats it affects how much you can borrow.
- Installation and commissioning by the supplier can usually be included, up to a set share of the total.
- Refractory lining supplied with a new unit is normally funded as part of it. A later reline is usually treated as maintenance rather than a new asset.
- Building and utility works, such as foundations, flues, a new gas supply or an electrical upgrade, are harder to fund because the lender cannot remove them. These often need to be paid for separately or covered by a business loan.
- Staged payments. Large furnaces are often built to order with a deposit, a payment on delivery and a final payment on commissioning. Some lenders can fund these stages, so tell us the payment schedule early.
Replacing a furnace to cut energy costs
Kilns and furnaces use a lot of energy, so many businesses replace them to cut running costs rather than because they have failed. A newer unit with better insulation, modern burners or heat recovery can use noticeably less gas or electricity.
Where the energy saving is clear, it helps to show it in the application. A supplier’s estimate of the saving, compared with your current energy bills, shows the lender how the new unit pays for itself. Some businesses also time the monthly payments to match the saving, so the upgrade costs little or nothing extra each month.
What lenders look at on kiln and furnace finance
- Standard or bespoke. Freestanding units from established makers have a resale market. Bespoke, built-in furnaces are harder to remove and resell, so lenders lean more on the strength of your business.
- Age and condition. On used equipment, lenders look at the year built, maintenance records and the state of the lining, elements and controls.
- Permits and compliance. Some furnaces need an environmental permit for their emissions. Lenders may ask that the permit covers the new unit.
- Your trading. Foundries and heat treaters are sensitive to energy prices and to demand from sectors like automotive and aerospace, so lenders look at margins and the customer base.
Hire purchase, finance lease and operating lease compared
Hire purchase suits a kiln or furnace you will keep for its working life, which is usually the case. A lease suits you better if you want to spread the VAT. 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 equipment after the final payment and any option fee | Kilns and furnaces you will run for many years |
| Finance lease | You rent the equipment 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 | Large installations where spreading the VAT helps cash flow |
| Operating lease | You rent the equipment for part of its life, then hand it back or upgrade. Only available on standard units with a reliable resale value | Standard furnaces and ovens you expect to replace |
Hire purchase for industrial kilns and furnaces
Hire purchase is the usual choice. 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.
Finance lease for industrial kilns and furnaces
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 equipment 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 industrial kilns and furnaces
An operating lease sets the rentals against what the equipment is expected to be worth at the end of the term, so the lender carries the resale risk. Because many furnaces are built in place, operating leases are only offered on standard units with a known second-hand value, such as some induction furnaces and industrial ovens.
Kiln and furnace finance costs: a worked example
A £140,000 heat treatment furnace, including installation and commissioning, costs about £2,616 a month on a 5-year hire purchase, or about £2,027 a month over 7 years.
| Item | 5 years | 7 years |
|---|---|---|
| Price (excl. VAT) | £140,000 | £140,000 |
| Deposit (10%) | £14,000 | £14,000 |
| VAT paid upfront | £28,000 | £28,000 |
| Monthly payment | £2,615.55 | £2,027.22 |
| Total interest | £30,933 | £44,287 |
The longer term lowers the monthly payment by about £588 but adds around £13,354 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 kiln and furnace 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, and works attached to a building can be treated differently from the equipment itself, so check the treatment with your accountant.
What lenders ask for
Most kiln and furnace 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 equipment, installation, commissioning and any site works separately, plus the payment schedule
- Photo ID and address history for each director
- Details of any existing finance agreements
Related guides
Who we can help
We arrange kiln and furnace 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.
Kiln and furnace finance FAQs
Can installation be included in kiln or furnace finance?
Usually, yes. Most lenders will include delivery, installation and commissioning by the supplier, up to a set share of the total. Building and utility works, such as foundations, flues or a new gas supply, are harder to include and may need funding separately.
How much does it cost to finance an industrial furnace?
It depends on the equipment, the term and your business. As an illustration, a £140,000 heat treatment furnace costs about £2,616 a month over 5 years on hire purchase at 9%, after a 10% deposit and the VAT paid upfront, or about £2,027 a month over 7 years.
Can I finance a used kiln or furnace?
Yes, especially standard, freestanding units from established makers with maintenance records. Bespoke furnaces that were built in place are harder to fund used. We can help limited companies and LLPs at most sizes, and sole traders and partnerships on agreements over £25,000.
Can a pottery or small studio finance a kiln?
We can help limited companies and LLPs of any size. Sole traders and partnerships can only be helped on business agreements over £25,000, so a single small studio kiln for a sole trader usually falls outside what we can arrange.
Is it better to lease or buy a furnace?
Hire purchase usually works out better, because most kilns and furnaces are kept for their working life and you own the equipment at the end. A finance lease can suit a large installation where spreading the VAT helps cash flow. Finance Assets compares both for each deal.
Can energy savings help a finance application?
They can. A supplier’s estimate of the energy saving, set against your current bills, shows the lender how the new unit will help pay for itself. It does not replace the usual checks on your accounts, but it strengthens the case.
Get a kiln and furnace finance quote
Tell us what you want to finance
Send us the equipment, 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.