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.
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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 UK limited companies and LLPs.
| 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 | UK limited companies and LLPs |
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.
- Injection Moulding Machine FinanceInjection moulding machine finance for new and used presses, robots, chillers and moulds. Hire purchase and leasing for UK limited companies. Get a quote.
- Laser Cutting Machine FinanceLaser cutting machine finance for fibre, CO2 and tube lasers, new, used or imported. Hire purchase and leasing for UK limited companies. Get a quote.
- Milling Machine FinanceFinance new or used milling machines and CNC machining centres with hire purchase or leasing. UK broker for limited companies. Get a free quote.
- Printing Press FinancePrinting press finance for offset, digital, wide format and label presses, new or used. Hire purchase and leasing for UK limited companies. Get a quote.
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, EDM machines and CNC routers |
| Cutting and fabrication | Laser, plasma and waterjet cutters, press brakes, guillotines and welding equipment |
| Plastics and moulding | Injection moulding, blow moulding and extrusion machines |
| Production and assembly | Production lines, industrial robots and cobots, conveyors, packaging lines and assembly cells |
| Finishing and inspection | Paint booths, curing and drying ovens, coordinate measuring machines and test 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.
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.
Asset finance for mechanical engineering firms
Asset finance for mechanical engineering firms covers the machine tools, fabrication and inspection equipment listed above, whether the business is a subcontract machine shop, a precision engineer or a maintenance and repair specialist. Most engineering asset finance goes on one or two core machines at a time, with tooling and software added to the same agreement. The four main types of finance for mechanical engineers work like this:
- Hire purchase for mechanical engineering firms suits machine tools and CMMs you will run for years and want to own.
- A finance lease for mechanical engineering spreads the VAT on a large machine order across the rentals.
- An operating lease for mechanical engineering suits CAD, CAM and test equipment that dates quickly.
- Contract hire for mechanical engineering firms is used mainly for service vans for field engineers.
Lenders also look at customer concentration, because many engineering firms rely on a few large customers. A spread of customers, or long-term supply agreements with the largest ones, strengthens the application.
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
- Details of existing finance agreements, and of any contracts the machinery will serve
Who we can help
We arrange manufacturing equipment finance for UK limited companies and LLPs. We are not authorised by the FCA, so we cannot arrange agreements of £25,000 or less for sole traders or small partnerships, 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.