What Are Engineering Business Loans?

Engineering business loans are funding solutions tailored to the needs of UK engineering, fabrication and manufacturing companies. They can help you:

• Purchase or lease equipment, machinery, vehicles and tools
• Bridge cashflow between milestones and client payments
• Fund materials and inventory for new or larger contracts
• Expand capacity, hire staff, or open new facilities
• Invest in automation, robotics and software (CAD/CAM, ERP, MRP, MES)
• Improve energy efficiency and sustainability to reduce costs

UK Business Loans does not lend or provide financial advice. We act as an introducer, matching your business to experienced UK brokers and lenders who can present suitable options. There’s no obligation to proceed.

Get Started — Free Eligibility Check

Finance Options for Engineering and Manufacturing

Every engineering business is different. Our partners offer a range of finance options to suit your goals, trading history and sector.

Asset Finance for Machinery and Equipment

• Use for: CNC machines, lathes, milling centres, press brakes, injection moulding machines, 3D printers, robotics, conveyors, compressors, welding sets, metrology and testing equipment.
• Benefits: Spread the cost, preserve working capital, align payments with ROI.
• Structures: Hire Purchase (HP), Finance Lease, Operating Lease, balloon payments, seasonal profiles.

Equipment Finance for Software and Tech

• Use for: CAD/CAM licences, simulation software, metrology systems, ERP/MRP upgrades, cybersecurity tools, servers and workstations.
• Benefits: Keep pace with technology cycles without large upfront costs.

Working Capital and Cashflow Loans

• Use for: Materials purchases, sub-contractors, overtime, recruitment, rising energy bills, short-term liquidity.
• Typical features: Unsecured or secured, fixed terms, flexible repayments; amounts depend on turnover, profitability and trading history.

Invoice Finance and Factoring

• Use for: Release cash tied up in 30–90 day payment terms common in engineering supply chains.
• Options: Invoice discounting (confidential), factoring (with collections support), selective invoice finance.
• Benefits: Smooth cashflow, fund growth without taking on as much debt.

Contract, Project or Purchase Order Finance

• Use for: Upfront costs of large contracts or POs (materials, labour, logistics) to fulfil orders and invoice on time.
• Benefits: Aligns funding with project milestones and delivery schedules.

Vehicle and Fleet Finance

• Use for: Vans, HGVs, forklifts, site vehicles and specialist transport.
• Options: HP, lease, refinance; EV and low-emission options available.

Refinance and Capital Release

• Use for: Unlock equity in owned machinery/equipment to raise working capital, consolidate higher-cost borrowing, or restructure payments.

Fit-Out and Premises Improvement Finance

• Use for: Workshop upgrades, racking, extraction systems, compressed air, LED lighting, solar, or energy-efficiency projects.

Compare Options — Get Quote Now

Typical Use Cases in Engineering

• Buying a new 5-axis CNC machining centre to reduce cycle times
• Financing ISO/UKCA compliance equipment and audits
• Upgrading toolroom machines and tooling inventories
• Adding a second robotic cell to increase throughput
• Bridging cashflow on framework agreements with milestone billing
• Purchasing raw materials at scale to secure better unit costs
• Funding apprenticeships and specialist recruitment
• Replacing legacy compressors and installing energy-efficient systems
• Implementing ERP/MRP for better production planning
• Refurbishing a fabrication shop or expanding a production line

Who We Help in the Engineering Sector

We connect a wide range of UK engineering firms to relevant lenders, including:

• Precision machining and CNC shops
• Fabrication and welding businesses
• Mechanical, electrical and civil engineering firms
• Metalworking, plastics and composites manufacturers
• M&E contractors, HVAC and building services engineers
• Toolmakers, mould makers and die shops
• Electronics and component manufacturers
• Maintenance, repair and overhaul (MRO) providers
• Start-ups and early-stage engineering businesses (Ltd/LLP)
• Established SMEs and multi-site manufacturers

How UK Business Loans Works

1. Complete a short enquiry form
   Tell us about your business, sector and funding needs. It takes less than two minutes. Free Eligibility Check — no obligation.
2. Smart matching to relevant lenders/brokers
   We connect you with UK finance partners who understand engineering and your requirement type (asset, invoice, working capital, etc.).
3. Fast response
   Expect a call or email, often within hours, to discuss indicative terms and required documents.
4. Compare and choose
   Review offers and terms. You decide whether to proceed. If you do, funding can be quick — subject to status, affordability and underwriting.

Start Your Enquiry — Free, No Obligation

Eligibility and What Lenders Look For

Criteria vary by lender and product, but typical considerations include:

• UK-registered entity: Limited company or LLP
• Time trading: From start-up to established (some lenders prefer 6–24 months+)
• Turnover and margins: Historic and projected performance
• Order book and contracts: Pipeline and contract quality
• Bank statements and management accounts: Cashflow health
• Credit profile: Business and, where relevant, directors
• Security: Asset-backed or unsecured; personal guarantees may apply
• Sector fit: Experience with engineering/manufacturing cycles and payment terms

Not every business will meet all criteria. The value of our network is matching you with partners who are comfortable with your profile and sector.

Documents Checklist

Providing clear documentation helps speed up approvals:

• Last 3–12 months’ business bank statements
• Latest filed accounts and recent management accounts
• Aged debtor and creditor lists (for invoice finance)
• Outstanding finance schedule (if any)
• Asset quotes/specifications (for asset/equipment finance)
• Contracts, POs or framework agreements (for project/PO finance)
• ID and proof of address for directors/owners
• Business plan or forecasts (helpful for start-ups and expansions)

Costs, Terms and Security (Clear, Fair and Not Misleading)

• Amounts: Typically from £10,000 up to £5,000,000+ depending on product and circumstances.
• Terms: Short-term bridging (3–12 months), working capital (6–60 months), asset finance (12–84 months); invoice finance is usually ongoing with monthly renewal.
• Pricing: Varies by product, lender, risk profile and market conditions. You will receive transparent, personalised terms directly from the lender or broker.
• Security: May be unsecured, secured on assets/equipment, debentures, or supported by director guarantees depending on product and eligibility.
• Important: All funding is subject to status, affordability and underwriting. We do not guarantee approval or specific terms. Proceeding with an offer may involve credit checks conducted by the lender/broker.

How Fast Can Engineering Businesses Get Funded?

Timelines vary by product and complexity:

• Asset/equipment finance: Often 2–7 working days once documents are complete
• Working capital loans: Sometimes 24–72 hours for simpler cases
• Invoice finance: 1–2 weeks to set up a facility; drawdowns thereafter can be same-day
• Refinance: Typically 3–10 working days depending on valuations

These are general timeframes; your lender will confirm specifics after review.

Get a Quick Quote — Free Eligibility Check

Why Use UK Business Loans for Engineering Finance?

• Sector expertise: We match you with lenders and brokers experienced in engineering and manufacturing.
• Speed: Short, simple enquiry. Fast responses, often the same day.
• Choice: Compare offers from selected UK partners in one place.
• Transparent: Clear information, no misleading claims or guaranteed approvals.
• Free and no obligation: Our matching service is free for UK businesses. You choose whether to proceed.
• Secure and confidential: Your details are shared only with relevant partners for your enquiry.

Compliance and Transparency

• We are not a lender and we do not provide financial advice.
• We act as an introducer, connecting UK businesses with brokers and lenders.
• Your enquiry to UK Business Loans does not affect your credit score. If you proceed, our partners may conduct credit and affordability checks.
• All financial promotions should be clear, fair and not misleading. We aim to provide accurate, balanced information to help you make informed decisions.
• Our service is free for UK businesses. If you take out a product, we may receive an introducer fee from a partner. This will not increase the amount you pay to a lender.

Frequently Asked Questions — Engineering Business Loans

Do you fund start-up engineering firms?

Yes, some partners consider start-ups for asset finance, equipment leasing and selected working capital solutions (Ltd/LLP). Strong experience, a robust plan, and contracts/POs can help.

Can I finance used machinery or equipment?

Many lenders will finance used assets, subject to age, condition and resale value. Provide the asset details or a supplier quote for faster decisions.

We have long payment terms with primes/OEMs — can you help?

Invoice finance or selective invoice discounting can release cash tied up in 30–90 day terms, helping you fund labour and materials without waiting.

Do I need to provide security or a personal guarantee?

It depends on the product and your profile. Asset finance is typically secured on the equipment. Unsecured loans may require a director guarantee. Your lender will explain any security before you agree.

How quickly can I get a decision?

Initial feedback is often same day once you speak with a partner. Formal offers depend on documents and underwriting, with many asset/working capital cases concluding within a few days.

Will my enquiry affect my credit score?

Enquiring via UK Business Loans will not affect your credit score. If you proceed with a lender, they may run credit checks as part of underwriting.

Can I consolidate existing finance or refinance assets?

Yes, refinance can release equity from owned machinery or restructure payments to improve cashflow, subject to valuations and lender criteria.

Do you cover green/energy-efficiency projects?

Yes, partners can support efficiency upgrades such as LED lighting, compressors, solar/energy storage, and process improvements, sometimes via sustainability-focused products.

What amounts can I apply for?

From £10,000 to £5,000,000+ depending on the product, asset values, turnover and overall circumstances.

Is there any obligation to proceed?

No. Your eligibility check and initial introductions are free and without obligation. You choose whether to proceed after reviewing terms.

Related Guides You May Find Useful

• Asset Finance for UK Businesses
• Invoice Finance for SMEs
• Working Capital and Cashflow Loans
• Sustainability and Energy-Efficiency Finance