Asset Finance for Manufacturers
By Joshua Giles, Founder and Director · Reviewed by the CoreFi credit team
Last updated 20 July 2026
CoreFi is a broker, not a lender. We do not set rates and lenders make all credit decisions.
In short: Manufacturing asset finance funds machinery such as CNC centres, packaging lines and production plant, spreading the cost over its working life and securing the debt on the equipment. Agreements typically run from £25k to £5M over 2 to 7 years on hire purchase or lease. We are a broker and place these for UK limited companies; the lender sets the rate.
A CNC machining centre from Mazak or DMG Mori runs £80k to £300k. A conveyor or packaging line upgrade can be seven figures. Most manufacturers we speak to have already done the mental arithmetic: the equipment pays for itself inside the term, but they cannot tie up that much cash and still run the business week to week.
Asset finance for manufacturing works by securing the loan against the equipment itself. The lender takes a first charge over the asset, which is why advance rates are typically 80 to 90% of invoice value, and why a manufacturing specialist will lend against a Haas VMC without blinking, where a generalist might not know what it is or what it holds.
The two main structures are hire purchase (you own the asset at the end, and you can claim Annual Investment Allowance on day one of the term) and finance lease (the lender retains legal ownership, which suits businesses that want to keep assets off the balance sheet or prefer to upgrade on a rolling basis). For equipment already owned outright, sale-and-leaseback is a third route: you sell the asset to the finance company at agreed value and lease it back, which releases capital without disrupting production.
Lenders with a genuine manufacturing appetite hold residual value data on recognised brands and standard industrial categories, so they can price a deal off the invoice alone. For bespoke or purpose-built lines, they will usually want an independent surveyor valuation first. We tell you upfront which lenders need one and which will proceed without.
No broker can promise a rate or an approval. What we can do is read the appetite of lenders who actually know this sector, and put your deal to the right one first time.
Key Benefits
- Hire purchase lets you claim Annual Investment Allowance on day one, which can reduce your Corporation Tax bill in the year of purchase
- The equipment is the security, so you are not pledging property or draining working capital to fund capital expenditure
- Sale-and-leaseback on unencumbered machinery you already own can release six-figure sums while you keep using the equipment
- Manufacturing-specialist lenders hold residual value data on brands like Mazak, DMG Mori, and Haas, which means they can price off the invoice and skip the surveyor on recognised kit
- Production line upgrades covering multiple assets can be wrapped into a single facility with staged drawdowns aligned to delivery and installation schedules
Frequently Asked Questions
Can I finance a full production line upgrade?
Yes. We have placed facilities that cover multiple assets under a single agreement, with drawdowns triggered as each piece of equipment is delivered and installed. This avoids paying interest on kit that has not yet arrived.
What is sale-and-leaseback and when does it make sense?
If you own equipment outright with no charge over it, a lender buys it from you at agreed value and leases it back. You keep using the machinery; the lender holds title during the term. It is most useful when a manufacturer needs working capital quickly but does not want to take on unsecured debt or put a charge over property.
Are there grants I can combine with asset finance?
Yes. Made Smarter, Innovate UK, and some local growth hubs fund part of the cost, with asset finance covering the rest. Some grant schemes require match funding, which is where a confirmed finance facility can strengthen your grant application.
How are valuations handled on specialist or bespoke equipment?
For recognised brands and standard industrial categories, lenders use their own residual value data and can approve on the invoice alone. Bespoke or purpose-built equipment usually needs an independent surveyor report. We can point you to surveyors familiar with manufacturing assets and tell you which lenders will want one before you apply.
Work out your numbers
Related Funding Options
Asset Finance UK: Rates, Providers, HP & Leasing
Asset finance rates and providers for UK limited companies: hire purchase, lease and asset-backed loans. We are a broker, placing your case with lenders that fit.
Invoice Finance for Manufacturers | Release Cash from Your Sales Ledger
UK manufacturers waiting 60-90 days for payment can release 80-90% of invoice value within 24 hours. We place invoice finance for manufacturing businesses across a range of facility sizes.
Trade Finance for Manufacturers
UK manufacturers paying overseas suppliers before finished goods sell can use trade finance for manufacturers to bridge the gap. We place transactions from £25k to £5M with lenders who understand manufacturing lead times.
Asset finance by location
Lender appetite varies by city and region. If you would rather start from where your business is based, these local guides cover the same funding with the local picture.
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Get matched with lendersCoreFi is a trading name of JG Core Ltd (Company #16218779, England & Wales). CoreFi acts as a commercial finance broker and does not provide regulated financial advice. All products described are unregulated business-to-business finance. Information on this page is for general guidance only and does not constitute a formal offer of finance. Terms, rates, and availability are subject to lender criteria and may change without notice.