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Manufacturing Finance

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Written by James Dutton

James is Head of Asset Finance in our funding division. He specialises in arranging finance for assets across a range of sectors, as well as experience in completing finance agreements for assets coming from abroad. James has more than 30 years of experience in the finance sector, providing him with the necessary expertise to arrange finance for businesses requiring finance facilities across the UK.

What is Manufacturing Finance?

Manufacturing finance enables businesses to purchase, upgrade, and refinance the machinery and equipment they need to maintain and grow their production capacity.

Manufacturing businesses depend on their equipment. Whether it is a precision CNC machine, a food processing line, or a robotic welding system, the plant and machinery at the heart of a manufacturing operation represents a significant investment. Finance solutions allow businesses to acquire or replace equipment without committing large amounts of capital upfront, helping to protect cash flow and keep production running without interruption.

UK Business Finance are specialists in manufacturing finance and can help you find the most appropriate form of funding for your business.

Our specialist team can arrange funding for a wide range of manufacturing assets, including lathes, CNC lathes, injection moulding tools, bandsaws, robotic welders, textile equipment, food processing equipment, material handlers, and industrial printers.

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Benefits of Manufacturing Finance

Cash flow management: Financing machinery and equipment means your business can invest in what it needs without depleting working capital. Rather than making a large upfront payment, asset finance spreads the cost over a structured repayment period, helping you maintain a healthy cash position alongside the ongoing costs of running a manufacturing operation.

Raise funds through refinancing: If your business already owns machinery or plant outright, asset refinance allows you to release the capital tied up in those assets. You sell the asset and lease it back, retaining full operational use throughout the agreement. Once repayments are complete, ownership returns to your business.

Invest in capacity and capability: Manufacturing finance makes it easier to invest in newer, more capable machinery and automation technology. Upgrading your production equipment can improve output quality, increase throughput, and reduce waste.

Predictable budgeting: Finance agreements come with fixed monthly repayments, making it more straightforward to manage costs alongside the demands of a manufacturing business. Knowing exactly what you owe and when ensures you can plan in advance capital that needs to be put aside for finance payments.

Flexibility tailored to your business: Repayment terms can often be structured to reflect the production cycles and cash flow patterns of your operation. Whether income follows contract milestones or fluctuates with order volumes, we can look to find a finance solution that fits your circumstances. 

Applying for manufacturing finance

Before making an application for manufacturing finance it is key to obtain a variety of quotes from different lenders. UK Business Finance can conduct a whole-of-market search to find the best and most appropriate finance deals for your manufacturing business.

  • We are commercial finance brokers, rather than lenders
  • We offer our services free of charge to you, and there is no exclusive contract to use them
  • We know the criteria of all the lenders in the UK and will write the applications on your behalf

For more information on securing the best type of funding for your manufacturing needs, please get in touch with our expert team.

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Finance options for Manufacturing Finance

Manufacturers can draw on a range of finance solutions to support both operational needs and longer-term investment. Asset finance and finance leases provide a structured way to acquire plant, machinery, and production equipment, while asset refinance offers a route to unlocking capital tied up in assets the business already owns. For manufacturers with other funding needs, unsecured loans can provide a more flexible arrangement.

UK Business Finance helps manufacturing businesses identify and secure the most suitable finance for their requirements. Whether the priority is upgrading production capacity or releasing working capital, our team manages the process end to end. 

Asset Finance Asset Refinance Finance Lease Unsecured Loans
Typical term length
Long Term
Short Term
Medium Term
Short Term
Flexibility
Medium
High
Medium
High
Deposit required?
Yes
Yes
Yes
No
Purpose
Purchase assets
Raise capital for multiple ventures
Lease assets
Multiple business needs

How do we work?

  • 1. Get a Customised Quote

    When you reach out to us, we will likely request that you provide the following information. Your latest set of accounts, previous 6 months’ banks statements and director’s personal details.

  • 2. Compare Options

    Once the information from step 1 has been confirmed, we will reach out to our extensive panel of funders, who under normal circumstances, respond with an answer in 48 hours. After this, Know Your Customer (KYC) and identification checks will take place for the business and its directors.

  • 3. Finalise the agreement

    As soon as you agree to move forward with the terms and conditions, you will receive the relevant documents for you to sign and then return. After the final checks have been completed, the funds will be released. The time taken to release the funding varies depending on the funder, ranging from 24 to 72 hours.

Why should your business receive Manufacturing Finance?

Manufacturing businesses face significant capital demands, from the cost of maintaining and replacing heavy machinery to the investment required to keep production lines running efficiently and competitively. Securing the right finance can give manufacturers the headroom to grow without placing undue strain on their cash flow.

  • Purchase new machinery and equipment
  • Upgrade existing production capacity
  • Align repayments with your cash flow
  • Refinance owned assets
  • Wide range of finance solutions available
  • Retain cash to cover unexpected costs
  • Invest in automation and new technology
  • Boost operational efficiency
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Manufacturing Finance FAQs

How can I increase my chances of securing manufacturing finance?

To boost your chances of approval, it’s important to maintain a good credit score and keep your financial documents well-organised. Demonstrating stable income and a healthy trading history will be beneficial. Reducing any existing debts can also improve your affordability profile. Additionally, clearly outlining the purpose of the finance and how it will benefit your business can help reassure lenders of your reliability.

What are the different finance options available with manufacturing finance?

We can provide solutions including hire purchase agreements, finance leases and asset refinance. As well as this, we can arrange unsecured loans and working capital loans.

What are the eligibility criteria for securing manufacturing finance?

While specific criteria can vary between lenders, generally, you will need to demonstrate that you are a registered UK business, provide full annual accounts, previous bank statements, plus personal details such as full name, date of birth and personal address.  

What are the typical terms for manufacturing finance?

The terms and interest rates may depend on multiple factors, including the age and condition of the asset, the amount being financed, the length of the repayment term, your business’ creditworthiness, current market interest rates and the specific finance product chosen.

What documents do I need to provide with manufacturing finance?

To apply, you will need to provide a range of documents to verify your business’s financial health. Documents to provide often include your business’s latest financial statements, 6 months of company bank statements, full name, address, DOB and homeownership status of all directors.