Finance Assets arranges hire purchase and leasing for UK manufacturers and engineering firms buying production machinery, from CNC machine tools to complete production lines.
Manufacturing equipment finance spreads the cost of new or used machinery over 2 to 7 years, so cash stays in the business for materials, stock and wages. We compare our lender panel for each machine, and every type of equipment below has its own guide.
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.
On this page
The short version
- Manufacturing equipment finance lets a business spread the cost of production machinery over 2 to 7 years.
- Hire purchase, finance lease and operating lease all work for most manufacturing and engineering equipment.
- Lenders fund new, used and imported machines, and often tooling, software and installation.
- Finance Assets arranges manufacturing equipment finance for limited companies and LLPs, and for sole traders and partnerships on agreements over £25,000.
| Item | Detail |
|---|---|
| Equipment covered | Machine tools, cutting and fabrication, plastics, production lines, inspection and workshop equipment |
| Terms | Usually 2 to 5 years, and up to 7 years for new, high-value machinery |
| Paid upfront | Hire purchase: often a 10% deposit plus VAT. Leases: usually 1 to 3 rentals in advance |
| New or used | Both, including imported machines and many auction purchases |
| Extra costs | Tooling, software, installation, commissioning and training can often be included |
| Who we help | Limited companies and LLPs, plus sole traders and partnerships on business agreements over £25,000 |
Manufacturing equipment finance guides
Each guide covers the machines lenders will fund, how hire purchase and leasing compare for that equipment, a worked example of the monthly cost, and the questions buyers ask most.
- EDM Machine FinanceEDM machine finance for new and used wire EDM, sinker EDM and EDM hole drilling machines. Hire purchase and leasing for UK toolmakers and precision engineers.
- Embroidery Machine FinanceEmbroidery machine finance for multi-head and single-head commercial machines, industrial sewing machines and heat presses. For UK businesses.
- Grinding Machine FinanceGrinding machine finance for surface, cylindrical, centreless and CNC tool grinders, new or used. Hire purchase and leasing for UK engineering businesses.
- Industrial Kiln and Furnace FinanceIndustrial kiln and furnace finance for ceramic and glass kilns, melting, heat treatment and curing furnaces. Hire purchase and leasing, installation included.
- Injection Moulding Machine FinanceInjection moulding machine finance for new and used presses, robots, chillers and moulds. Hire purchase and leasing for UK businesses. Get a quote.
- Inspection and Metrology Equipment FinanceInspection and metrology equipment finance for CMMs, industrial X-ray and CT, NDT, vision systems and materials testing machines. Hire purchase and leasing, new or used.
- Laser Cutting Machine FinanceLaser cutting machine finance for fibre, CO2 and tube lasers, new, used or imported. Hire purchase and leasing for UK businesses. Get a quote.
- Lathe FinanceLathe finance for manual centre lathes, CNC turning centres, mill-turn and sliding head machines, new or used. Hire purchase and leasing for UK engineers.
- Metal Fabrication Equipment FinanceMetal fabrication equipment finance for press brakes, punching machines, guillotines, profiling, drill lines, coil processing and cold forming. New or used.
- Milling Machine FinanceFinance new or used milling machines and CNC machining centres with hire purchase or leasing. UK broker for businesses of all sizes. Get a free quote.
- Packaging Machinery FinancePackaging machinery finance for bottle and can filling, wrapping and packing, carton making, labelling and end-of-line equipment, new or used, on hire purchase or leasing.
- Plastics Machinery FinancePlastics machinery finance for blow moulding machines, extrusion lines, thermoformers and granulators, new or used. For UK businesses. Get a quote.
- Printing Press FinancePrinting press finance for offset, digital, wide format and label presses, new or used. Hire purchase and leasing for UK businesses. Get a quote.
- Production Line and Automation FinanceProduction line and automation finance for conveyors, industrial robots, cobots, pick-and-place and robot cells, integration included. Hire purchase and leasing.
- Welding Machine FinanceWelding machine finance for MIG, TIG and spot welders, welder generators and robotic welding cells. Hire purchase and leasing for UK fabricators and engineers.
- Woodworking Machinery FinanceWoodworking machinery finance for CNC routers, panel saws, edgebanders, boring machines and sanders. Hire purchase and leasing for joiners, kitchen makers and shopfitters.
Manufacturing and engineering equipment we finance
Lenders will fund most production and engineering machinery that is used in the business, comes from an identifiable supplier and holds its resale value.
| Equipment group | Examples |
|---|---|
| Machine tools | Milling machines, machining centres, lathes, grinders and EDM machines |
| Cutting and fabrication | Laser cutters, plasma and waterjet cutters, press brakes, punching machines, guillotines and coil lines, and welding equipment |
| Woodworking | CNC routers, panel saws, edgebanders, boring machines, sanders and moulders, plus dust extraction |
| Plastics and moulding | Injection moulding, blow moulding, extrusion, thermoforming and vacuum forming machines |
| Production and assembly | Production lines, robots and automation, including conveyors, cobots, pick-and-place machines and assembly cells, plus packaging lines |
| Thermal processing | Industrial kilns and furnaces, heat treatment furnaces, and curing and drying ovens |
| Finishing and inspection | Paint booths, deburring and powder coating, and CMMs, industrial X-ray and CT, NDT and materials testing equipment |
| Additive manufacturing | Industrial 3D printers and post-processing equipment |
| Materials handling and workshop | Forklift trucks, pallet racking, overhead cranes, hoists and compressors |
Hire purchase, finance lease and operating lease for manufacturing equipment
The right option depends on whether you want to own the machine at the end and how long it will stay productive.
| Option | How it works | Best for |
|---|---|---|
| Hire purchase | Deposit plus fixed monthly payments. You own the machine after the final payment | Core production machinery you will run for many years |
| Finance lease | Rentals over most of the working life. The lender owns the machine, and VAT is spread across the rentals | Keeping upfront costs and VAT outlay low |
| Operating lease | Rentals for part of the working life, then hand back or upgrade | Technology you expect to replace in 2 to 4 years |
Hire purchase for manufacturing equipment
Hire purchase is the usual route for machinery that sits at the heart of production. After a deposit, typically 10% plus the VAT, you make fixed payments and the machine becomes yours once the last payment and a small option fee are made. Because you are treated as the owner for tax, you may be able to claim capital allowances against the cost.
Finance lease for manufacturing equipment
A finance lease suits a manufacturer that wants the use of a machine without tying up cash in a deposit and VAT. You pay rentals, usually with 1 to 3 in advance, and VAT is added to each one. At the end of the main term you can carry on at a low secondary rent or sell the machine on the lender’s behalf and keep most of the proceeds.
Operating lease for manufacturing equipment
An operating lease prices the rentals around what the equipment should be worth at the end of the term, so the lender takes the resale risk. It works best for machinery from well-known brands that holds its value, and for automation or inspection equipment you expect to upgrade as technology moves on.
VAT and tax on manufacturing equipment finance
On hire purchase, VAT on the full price is usually paid at the start and reclaimed on your next VAT return. On a lease, VAT is added to each rental instead. With hire purchase you are treated as the owner for tax, so you may be able to claim capital allowances, such as the Annual Investment Allowance. Lease rentals are usually an allowable business expense. Tax depends on your circumstances, so check the treatment with your accountant.
Used, imported and refinanced machinery
- Used machinery from dealers is widely funded. Some lenders also fund auction and private purchases after an inspection or valuation.
- Imported machinery can be funded, and some lenders pay overseas suppliers directly, including deposits and shipping.
- Tooling, software and installation can often be included alongside the machine, usually up to a set share of the total.
- Machinery you already own can be refinanced to release cash for new equipment or working capital.
If the pressure is cash tied up in customer invoices rather than machinery, invoice finance through our main site, Bolton Business Finance, can advance up to 90% of an invoice’s value within 24 hours of raising it.
Financing several machines or a production line
Several machines, and whole production lines, can usually be funded together. Where everything is bought at once, many lenders will fund it under one agreement, even when it comes from different suppliers.
- Staged payments. For lines that are built to order, some lenders pay deposits and stage payments to the supplier during the build, with the main repayments starting once the line is installed.
- Master agreements. If machines arrive over several months, a lender may set up one master agreement and add each machine as a new schedule on the same terms.
- Installation and commissioning. Groundwork, electrical connection, commissioning and training can often be included alongside the machinery.
Mechanical engineering firms
Subcontract machine shops, precision engineers and maintenance specialists use the same machine tools, fabrication and inspection equipment listed above, usually one or two core machines at a time with tooling and software on the same agreement. Our guide to asset finance for mechanical engineering firms covers the finance options, a machining centre worked example and what lenders look for in engineering businesses.
How manufacturing equipment finance works
- Send us the details of the machine, the supplier quote and your business
- We approach the lenders on our panel that fund that type of equipment and bring back the options
- The chosen lender reviews your accounts and bank statements and makes a credit decision
- You sign the agreement and the lender pays the supplier
- The machine is installed and your payments begin
What lenders ask for
Most lenders ask for the same core documents for manufacturing equipment finance, with more detail on larger or newer deals.
- Your last 2 years of filed accounts, or management accounts and a forecast for newer companies
- Your last 3 to 6 months of business bank statements
- Supplier quotes or pro forma invoices for each machine
- Photo ID and address history for each director, member or partner
- Details of existing finance agreements, and of any contracts the machinery will serve
Related guides
- Asset finance for mechanical engineering firms
- Asset finance for aerospace manufacturers
- Asset finance for automotive manufacturers
- Asset finance for pharmaceutical manufacturing
- Food manufacturing equipment finance
- Transport and haulage finance, for delivery vehicles and trailers
- Business and site equipment finance, for IT, site cabins and telehandlers
- Types of asset finance
- All sectors we finance
Who we can help
We arrange manufacturing equipment 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.
Manufacturing equipment finance FAQs
What manufacturing equipment can be financed?
Most production and engineering machinery can be financed, including machine tools, cutting and fabrication equipment, injection moulding machines, production lines, robotics, inspection equipment and materials handling kit. The machine needs to be used in the business, come from an identifiable supplier and hold some resale value, because the lender uses it as security for the agreement.
Can I finance several machines in one agreement?
Yes. Many lenders will put several machines from the same supplier on one agreement, and some will set up a facility the business can draw on as it buys equipment over the year. This keeps the paperwork down and can make it easier to plan monthly costs across a whole workshop or production line.
Can I finance used or imported machinery?
Yes. Used machinery from dealers is widely funded, and some lenders also fund auction and private purchases after an inspection or valuation. Imported machines can be funded too, with some lenders paying overseas suppliers directly. Older machines may be offered shorter terms, because lenders usually cap the age of the equipment at the end of the agreement.
How long can manufacturing equipment finance run?
Most agreements run for 2 to 5 years, and up to 7 years for new, high-value machinery such as CNC machining centres or complete production lines. The term should match how long the equipment will stay productive in the business, so the payments finish before the machine needs replacing.
Can a newer manufacturing business get equipment finance?
Yes, although lenders look more closely at companies with a short trading history. They may ask for a larger deposit, a personal guarantee from the directors, or evidence of the contracts the equipment will be used for. A clear plan for the machine and a strong director credit history both make an application easier.
Can I raise cash against machinery I already own?
Yes. Asset refinance lets a business borrow against machinery it owns outright, or restructure existing finance agreements to release equity. It is often used to fund new equipment or add working capital. The amount available depends on the current value of the machinery, its age and how the lender views the business.
Get a manufacturing equipment 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.