Finance Assets arranges hire purchase and leasing for UK limited companies buying new or used milling machines, from manual turret mills to 5-axis machining centres.
Milling machine finance spreads the cost of new or used milling machinery over 2 to 7 years, so cash stays free for materials, tooling 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 September 2026.
On this page
The short version
- Milling machine finance lets a business spread the cost of a new or used milling 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.
- Most lenders also fund used and imported machines, plus tooling and installation.
- Finance Assets arranges milling machine finance for UK limited companies and LLPs.
| Item | Detail |
|---|---|
| Machines covered | Manual mills, CNC machining centres, 5-axis machines, gantry mills and CNC routers |
| Terms | Usually 2 to 5 years, and up to 7 years for new, high-value CNC machines |
| Paid upfront | Hire purchase: often a 10% deposit plus VAT. Leases: usually 1 to 3 rentals in advance |
| New or used | Both. Some lenders also fund imported, auction and private purchases |
| Extra costs | Tooling, CAM software, installation and training can often be included |
| Who we help | UK limited companies and LLPs |
Milling machines we finance
Lenders will fund most types of milling machine, as long as it is used in your business and comes from an identifiable supplier.
- Manual and conventional mills, including turret, knee, bed and universal mills
- CNC vertical machining centres (VMCs)
- CNC horizontal machining centres (HMCs)
- 5-axis and multi-axis machining centres
- Gantry, bridge and large bed-type mills
- CNC routers and engraving machines
- Control retrofits and upgrades to existing machines
Machining centre finance works in exactly the same way. A CNC machining centre is a milling machine with an automatic tool changer, so lenders fund vertical, horizontal and 5-axis machining centres on the same terms as other milling machinery.
For the other machine tools, fabrication and plastics equipment we fund, see manufacturing equipment finance.
New, used and imported 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 mill may get a shorter term.
- Imported machines can be funded too. Some lenders pay overseas suppliers directly and can cover deposits, shipping and installation.
- Extra costs such as tooling, CAM software, installation and operator training can often be included alongside the machine, usually up to a set share of the total.
Hire purchase, finance lease and operating lease compared
Hire purchase suits a mill 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.
| 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 well-known brands with strong resale values | Upgrading every 2 to 4 years |
| 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, 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 |
Hire purchase for milling machines and machining centres
Hire purchase is the usual choice for a mill 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. A balloon payment at the end can lower the monthly cost, as the worked example below shows.
Finance lease for milling machines and machining centres
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 milling machines and machining centres
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. That makes it most common on well-known CNC brands that hold their value. At the end you hand the machine back, extend the lease or upgrade to a newer model.
Contract hire is mainly used for vehicles, so it is rarely the right fit for a milling machine.
Milling machine finance costs: a worked example
An £80,000 CNC machining centre on a 5-year hire purchase costs about £1,495 a month, or about £1,282 a month with a 20% balloon.
| Item | Standard | With 20% balloon |
|---|---|---|
| Machine price (excl. VAT) | £80,000 | £80,000 |
| Deposit (10%) | £8,000 | £8,000 |
| VAT paid upfront | £16,000 | £16,000 |
| Monthly payment (60 months) | £1,494.60 | £1,282.47 |
| Final balloon payment | None | £16,000 |
| Total interest | £17,676 | £20,948 |
The balloon cuts the monthly payment by about £212 but adds around £3,270 of interest, because more of the balance is borrowed for longer. Many lenders will also defer the VAT for a few months.
Illustration calculated in September 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 milling machine finance
On hire purchase, VAT on the full price is usually paid at the start, and VAT-registered businesses reclaim it on their next return. On a finance or operating lease, VAT is added to each rental instead.
With hire purchase, the business is treated as the owner for tax, so it may be able to claim capital allowances, such as the Annual Investment Allowance, against the cost of the machine. With a lease, the rentals are usually an allowable business expense. Tax depends on your circumstances, so check the treatment with your accountant.
How milling 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 that type of machine, 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 delivered and your payments start
What lenders ask for
Most milling 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
- Photo ID and address history for each director
- Details of any existing finance agreements
Larger deals may also need up-to-date management accounts.
Related guides
Who we can help
We arrange milling machine 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.
Milling machine finance FAQs
Can I finance a used milling machine?
Yes. Most lenders fund used milling 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 mill may be offered a shorter term than a new one.
How long can I spread the cost of a milling machine?
Milling machine finance usually runs for 2 to 5 years, and up to 7 years for new, high-value CNC machining centres. The right term is one that matches how long the machine will earn its keep, so the payments finish before it needs replacing.
Can a new business get milling 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 contracts and orders the machine will be used for. A strong director credit history and a clear plan for the machine both help.
Can tooling, software and installation be included in the finance?
Often, yes. Many lenders will include tooling, CAM software, installation and operator training alongside the machine itself, usually up to a set share of the total amount financed. This means the business does not have to fund those costs from cash while the machine is being commissioned.
Is it better to lease or buy a CNC milling 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 business that plans to upgrade within a few years. Finance Assets compares both options for each deal.
Can I release cash from a milling machine I already own?
Yes. Asset refinance lets a business raise funds against machines it owns outright, or restructure existing finance agreements. It is often used to fund a new machine or add working capital. The amount available depends on the current value of the machine, its age and how the lender views the business.
Get a milling 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.