CNC machine finance for UK manufacturers and machine shops
Most machine shops fund a CNC purchase with hire purchase if they plan to keep the machine for years, or a lease if lower payments and upgrades…
Asset finance
Machinery finance: fund production, plant and agricultural machines
Fund new or used CNC machines, presses, plant and farm machinery over its working life. Compare hire purchase, leasing and loans, and see what lenders assess.
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- From £10,000 to £10 millionLarger amounts through secured, property and asset-based finance
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In short
Hire purchase is the usual route if you want to own a machine you will keep for years; a finance or operating lease suits machinery that dates quickly or is needed for a project; a term loan lets you buy outright and spread the cost; and asset refinance releases cash from machines you already own.
Lenders focus on the machine's resale value, your trading record and whether cash flow covers the payments.
- Manufacturing and engineering
- Construction plant, such as excavators
- Agricultural machinery, such as
- Material-handling equipment, such as
- Printing, packaging, food processing
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About machinery finance
Machinery finance is a way to acquire the machines your business depends on and spread the cost over monthly payments.
Machinery finance is a way to acquire the machines your business depends on and spread the cost over monthly payments, with the machine itself usually acting as security. It is for manufacturers, engineers, contractors, farmers and processors who need to add capacity, replace an ageing machine or take on a contract that requires new kit, without tying up the working capital that pays for materials and wages. Smart Funding Solutions approaches asset finance specialists on its panel that know how to value the machine you have in mind.
Machinery finance is a form of asset finance. Lighter tools, IT and catering kit are covered on our equipment finance page.
Funding needs
What machinery finance covers
Almost any business-critical machine with a resale value can be financed, new or used, including:
- Manufacturing and engineering machinery, such as CNC machines, lathes, presses and production lines; see our guide to CNC machine finance.
- Construction plant, such as excavators, telehandlers and dumpers.
- Agricultural machinery, such as tractors and harvesters.
- Material-handling equipment, such as forklifts.
- Printing, packaging, food processing and specialist trade machinery.
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A transaction we arranged
£185,000
The machine could increase capacity. Paying £185K in cash would have reduced it.
An engineering firm wanted a new CNC machine without draining working capital. We arranged asset finance against the machine.
Read the transaction- Sector
- Engineering
- Structure
- Asset finance
- Outcome
- Completed
Types of machinery finance
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Hire purchase
Learn moreYou usually pay a deposit, then fixed monthly payments. You use the machine from day one and ownership passes to you after the final payment, often with a small option-to-purchase fee. It suits machinery you plan to keep for most of its working life.
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Finance lease
Learn moreThe lender buys the machine and rents it to you for most of its useful life. You do not own it, but at the end you can often continue renting at a reduced rate or share in the sale proceeds, depending on the agreement.
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Operating lease
Learn moreA shorter rental for part of the machine's life, after which you return or upgrade it. It suits machinery that dates quickly or is needed for a specific project, and the lender takes the risk on the resale value.
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Term loans
A business loan to buy the machine outright, repaid over a set term. You own it immediately. Lenders may take security over the machine or other assets, or offer an unsecured loan with a personal guarantee.
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Asset refinance
If you already own machinery, asset refinance releases cash from its value, repaid over a set term.
Explore this section
In this section
More detail on specific needs within this topic.
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Will the machine pay for itself?
Before you borrow, estimate what the machine will add each month: extra output you can sell, labour or outsourcing costs saved, less scrap or downtime. Compare that figure with the monthly finance payment, running costs and insurance. If the machine's contribution comfortably covers the payment from the month it is installed, lenders are more likely to see the case, and you are less likely to strain cash flow while production ramps up. Allow for delivery, installation and training time before it starts earning.
Underwriting
What lenders look at
01
The machine
its type, age, condition, expected life and resale value. Well-known makes with a strong second-hand market are easier to fund.
02
Trading history and accounts
how long you have traded and how profitable the business is. Newer businesses may be asked for a larger deposit.
03
Cash flow
whether income comfortably covers repayments.
04
Credit profile
the business's and directors' credit history.
05
Supplier
whether the machine comes from a dealer or a private seller, and the invoice details.
Checklist
Documents to have ready
- A supplier quote or invoice with make, model, year and serial number.
- Latest filed accounts and management accounts for larger amounts.
- Recent business bank statements.
- For newer businesses, contracts or orders the machine will fulfil.
Side by side
Compare your options
How the main business finance structures work. Lenders set their own terms, so treat this as a guide to the questions to ask.
| Option | How you repay | Security | Often used for |
|---|---|---|---|
| Unsecured business loan | Fixed instalments, usually monthly | No charge over assets; a personal guarantee is usually required | Growth, stock, tax bills and cash flow |
| Secured business loan | Fixed instalments, often over a longer term | A charge over property or other assets | Larger sums, property and refinancing |
| Revolving credit facility | Interest on what you draw; repay and redraw | Varies by lender and case | Recurring or uneven cash flow gaps |
| Merchant cash advance | A share of future card takings | No charge over assets | Card-taking businesses with uneven months |
| Asset finance | Regular payments over the life of the asset | The asset being financed | Equipment, vehicles and machinery |
| Invoice finance | Settled as customers pay their invoices | Your unpaid invoices | Businesses waiting on customer payment |
General information only. Every lender has its own criteria, and all finance is subject to status.
Buying, leasing or financing: how to choose
| Option | Ownership | Often suits |
|---|---|---|
| Cash purchase | Immediate | Businesses with surplus cash that want no borrowing |
| Hire purchase | After final payment | Long-life machinery you intend to keep |
| Finance lease | No (lender owns) | Keeping cash free while using the asset for most of its life |
| Operating lease | No (return or upgrade) | Machinery that dates quickly or short-term projects |
| Term loan | Immediate | Buying outright while spreading the cost |
Leasing typically costs more over the long run than owning, but keeps upfront costs low and makes upgrading easier. Ownership gives you full control and any resale value, but you carry maintenance and the risk of the machine becoming obsolete.
Comparing machinery finance deals
- Total cost: interest, fees and any final payment, not just the monthly figure.
- Repayment profile: whether the term matches the machine's working life, and whether seasonal or stepped payments are possible.
- Hidden costs: documentation fees, option-to-purchase fees and early settlement charges.
- End-of-term position: ownership, return conditions and wear-and-tear charges on leases.
Tax treatment differs between hire purchase, leases and loans, for example in how capital allowances and rental payments are treated. Speak to your accountant, and see GOV.UK guidance on capital allowances.
The broker’s view
How we arrange machinery finance
Send us the supplier quote, recent bank statements and your latest accounts. We review what you need, explain the realistic options, approach lenders that fund that type of machine and go through the terms with you; the lender makes the decision. After approval, the lender issues the finance agreement, you sign it and pay any deposit, and once the supplier confirms delivery (often with a signed satisfaction note) the lender pays the supplier directly. Decisions on straightforward asset finance can come within a few working days once a lender has everything it needs. It is free to enquire, and any broker fee is disclosed separately before you proceed. You can discuss your requirement online with your quote to hand.
FAQs
Questions clients ask
Can I finance used machinery?
Yes. Many lenders finance used machinery, provided it has a reliable resale value and is in good condition. Lenders may limit the term based on the machine's age, and some ask for a larger deposit on older equipment. Buying from a recognised dealer with a proper invoice usually makes approval simpler than a private sale.
Can a new business get machinery finance?
Yes, a new business can often get machinery finance, because the machine itself secures the agreement and has a resale value. Lenders may ask for a larger deposit, a personal guarantee and evidence of contracts or relevant experience. Well-known machines from established makers are easier to fund than specialist one-off equipment. Our page on start-up business loans covers the wider options for younger companies.
Can I get machinery finance with bad credit?
It can be possible, because machinery finance is secured on the machine. Expect a larger deposit, a shorter term or a higher cost if your credit history includes missed payments, defaults or CCJs. Lenders also look at your current trading, bank conduct and how the machine will pay for itself. Our guide to bad credit asset finance explains what lenders typically consider.
Can I claim capital allowances on machinery finance?
It depends on the agreement. With hire purchase you are usually treated as the owner for tax purposes, so you may be able to claim capital allowances. With a lease the lender owns the machine, and rentals are generally treated as a business expense instead. Your accountant should confirm the treatment. Our guide to asset finance and capital allowances explains the main points.
How long does machinery finance take to arrange?
Machinery finance can often be arranged within a few working days in straightforward cases, once the lender has the supplier quote, accounts and bank statements. Larger, imported or specialist machines, used kit bought privately or businesses with complex credit histories can take longer because lenders may need valuations or more information. Having your documents ready and a clear quote speeds things up.
Relevant transactions
More deals like this
£268,788 across six facilities. One business, more than one kind of funding.
An established access equipment business needed VAT support at some points and working capital at others. We arranged both.
VAT funding and working capitalRead the transaction
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What our clients say
“Simon was fast, kept us updated at all stages and was a real pleasure to work with on our asset finance. I highly recommend this company: excellent service all round.”
“Spoke with Simon, who managed to get me the loan I needed promptly. The whole process was very smooth and was completed within a few days.”
“Getting a business loan can feel like a bit of a minefield, but everything was broken down for me in great detail. Will use again in the future!”
“Simon was a pleasure to deal with and helped us find a business loan that matched our growth goals and future expansion plans.”
“I couldn’t source funding for my business, but the team got in touch within an hour and had it sorted within 24 hours. Fantastic service, and I would definitely use them again.”
Why businesses choose Smart Funding Solutions
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