Finance Assets arranges hire purchase and leasing for UK manufacturers investing in production lines and automation, from conveyors and pick-and-place machines to industrial robots, cobots and complete automated cells.
Production line and automation finance spreads the cost over 2 to 7 years, so the savings in labour, output and quality can help pay for the equipment as it is used. 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
- Production line and automation finance spreads the cost over 2 to 7 years.
- With hire purchase, the business owns the equipment after the final payment.
- Integration, programming and guarding can usually be funded alongside the hardware, up to a set share of the total.
- Robots from major makers hold value well, while bespoke lines rely more on the strength of your business.
- Finance Assets arranges this finance for limited companies and LLPs, and for sole traders and partnerships on agreements over £25,000.
| Item | Detail |
|---|---|
| Equipment covered | Production and assembly lines, conveyors, industrial robots, cobots, pick-and-place machines, palletising cells, automated guided vehicles and vision systems |
| Terms | Usually 3 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. Used and redeployed robots from major makers are widely funded |
| Extra costs | Integration, programming, guarding, installation and training can often be included |
| Who we help | Limited companies and LLPs, plus sole traders and partnerships on business agreements over £25,000 |
Production line and automation equipment we finance
Lenders will fund most production and automation equipment, as long as it comes from an identifiable supplier or integrator on a clear quote.
| Equipment type | Examples |
|---|---|
| Production and assembly lines | Manufacturing lines, assembly lines, processing lines and line upgrades |
| Conveyors | Belt, roller, chain, modular plastic and spiral conveyors, sortation and accumulation systems |
| Industrial robots | Six-axis, SCARA and delta robots for welding, machine tending, painting, palletising and handling |
| Collaborative robots | Cobots for machine tending, packing, screwdriving and inspection alongside staff |
| Pick and place | SMT pick-and-place machines for electronics, and pick-and-place systems for packing and handling |
| Intralogistics | Automated guided vehicles (AGVs), autonomous mobile robots (AMRs) and automated storage |
| Controls and inspection | PLC control systems, machine vision, sensors and end-of-line test equipment |
We regularly see robots from makers such as FANUC, ABB, KUKA, Yaskawa, Kawasaki and Universal Robots. For packing lines, see packaging machinery finance, and for the wider range of machinery we fund, see manufacturing equipment finance.
Integration, programming and other soft costs
On automation projects, the hardware is often only part of the bill. Design, programming, guarding, installation and commissioning by a systems integrator can be a large share of the total, and these costs have no resale value of their own.
- Most lenders will fund soft costs alongside the equipment, usually up to a set share of the total. The more the project leans on integration, the more the lender looks at your business rather than the hardware.
- Itemised quotes help. A quote that separates the robot, the cell hardware, guarding and integration lets the lender see what can be resold and what cannot.
- Grants and support. Some regions run adoption programmes that part-fund automation projects. Finance can usually cover the rest, so tell us if you have a grant in place.
Staged payments and acceptance
Lines and robot cells are often built to order, with payments due at order, at factory acceptance testing (FAT), on delivery and at site acceptance testing (SAT). Some lenders can fund these stage payments, with the finance agreement starting once the equipment is accepted. Others will only pay on completion, so the supplier’s payment terms need to be agreed early. Share the payment schedule with us at the start and we will match it to a lender that can work with it.
What lenders look at on production line and automation finance
- Standard or bespoke. A robot from a major maker can be redeployed or resold, so it supports longer terms. A bespoke line built for one product has little resale value, so lenders lean more on your accounts.
- The business case. A short summary of what the project will save or add, such as labour hours, output or scrap, shows how the payments will be met.
- The integrator. Lenders are more comfortable with established integrators that have a track record and offer support after installation.
- Customer contracts. If the line is being built for one customer’s work, lenders may ask how long that contract runs.
Hire purchase, finance lease and operating lease compared
Hire purchase suits equipment you will keep for its working life. 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 equipment after the final payment and any option fee | Lines and cells 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 projects where spreading the VAT helps cash flow |
| Operating lease | You rent the equipment for part of its life, then hand it back or upgrade. Mostly available on standard robots and cobots from major makers | Robots you may redeploy or replace as products change |
Hire purchase for production lines and robots
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 on the equipment.
Finance lease for production lines and robots
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 production lines and robots
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. It is most often available on standard industrial robots and cobots, which have an active second-hand market. Bespoke lines rarely qualify. At the end you hand the equipment back, extend the lease or upgrade.
Production line and automation finance costs: a worked example
A £250,000 robotic palletising cell, including conveyors, guarding and integration, costs about £4,671 a month on a 5-year hire purchase, or about £3,620 a month over 7 years.
| Item | 5 years | 7 years |
|---|---|---|
| Price (excl. VAT) | £250,000 | £250,000 |
| Deposit (10%) | £25,000 | £25,000 |
| VAT paid upfront | £50,000 | £50,000 |
| Monthly payment | £4,670.63 | £3,620.04 |
| Total interest | £55,238 | £79,084 |
The longer term lowers the monthly payment by about £1,051 but adds around £23,846 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 production line and automation 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 integration costs may be treated differently from the hardware, so check the treatment with your accountant.
What lenders ask for
Most production line and automation 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
- An itemised quote from the supplier or integrator, separating hardware from integration and installation, plus the payment schedule
- A short summary of what the project will save or add
- Photo ID and address history for each director, and details of any existing finance agreements
Related guides
Who we can help
We arrange production line and automation 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.
Production line and automation finance FAQs
Can integration and programming costs be financed?
Usually, yes. Most lenders will fund integration, programming, guarding, installation and training alongside the hardware, up to a set share of the total. An itemised quote helps the lender see how the cost splits between equipment and services.
How much does it cost to finance a robot cell?
It depends on the equipment, the term and your business. As an illustration, a £250,000 robotic palletising cell costs about £4,671 a month over 5 years on hire purchase at 9%, after a 10% deposit and the VAT paid upfront, or about £3,620 a month over 7 years.
Can I finance a cobot?
Yes. Cobots from major makers are widely funded and often cost less than a full industrial robot cell. A single cobot can fall below some lenders’ minimum deal size, so it can help to fund it with its gripper, tooling and integration, or alongside other equipment.
Can I finance a used or redeployed robot?
Yes. Used robots from major makers have an active second-hand market and are widely funded, especially when refurbished and supplied by an integrator. Lenders will want the make, model, year and the scope of any refurbishment. We can help limited companies and LLPs at most sizes, and sole traders and partnerships on agreements over £25,000.
Can stage payments to the integrator be funded?
Some lenders can fund stage payments during the build, with the agreement starting once the equipment is accepted. Others only pay on completion. Share the payment schedule early so we can match it to a lender that can work with it.
Is it better to lease or buy automation equipment?
Hire purchase usually works out better for lines and cells you will run for many years, because you own them at the end and may be able to claim capital allowances. An operating lease can suit standard robots you may redeploy or replace. Finance Assets compares both for each deal.
Get a production line and automation finance quote
Tell us what you want to finance
Send us the project, 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.