Summary — Can manufacturers finance CNC machines, lathes and presses?

Short answer: Yes — manufacturers commonly use asset finance to acquire CNC machines, lathes and presses. Asset finance (hire purchase, finance leases, chattel mortgages and refinance) lets businesses spread cost, preserve working capital and upgrade equipment without a single large cash outlay. The right option depends on asset age, condition, business credit and whether you want ownership at term end. For a quick assessment, complete a Free Eligibility Check and we’ll match you with lenders or brokers suited to manufacturing equipment finance.

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Why manufacturers use asset finance for CNCs, lathes & presses

Asset finance CNC machines is a common route for engineering and manufacturing businesses because it preserves working capital while enabling investment in productivity-enhancing kit. Instead of a single capital outlay, finance spreads cost over months or years so you can:

• Preserve cashflow and maintain supplier and overdraft facilities.
• Upgrade to newer technology (e.g., multi-axis CNCs) to increase capacity and accuracy.
• Match repayment profiles to expected returns — speed up ROI by deploying equipment immediately.
• Simplify VAT handling: many finance products let VAT be reclaimed in line with tax rules.
• Benefit from tax allowances (speak to your accountant on capital allowances and AIA).

Example: a small engineering shop replaced two manual lathes with a 5‑axis CNC on hire purchase and doubled throughput within months — without tying up a large cash reserve.

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Which types of asset finance suit CNCs, lathes & presses?

Manufacturers can choose from several finance structures. The best fit depends on budget, tax treatment and whether you want ownership:

Hire Purchase (HP)

HP spreads the cost with fixed payments and the business becomes owner after the final payment. Typical for companies that want ownership and to claim capital allowances.

Finance Lease / Operating Lease

Finance leases are like long-term rentals with maintenance often arranged separately; operating leases are effectively hire agreements with no ownership. Leases can be attractive if you favour off‑balance-sheet treatment or regular upgrades.

Chattel Mortgage

A secured loan against the asset; common when dealers or brokers arrange financing tied directly to supplier invoices. It provides ownership and security similar to HP but uses mortgage-style documentation.

Asset refinance / sale & leaseback

For established businesses wanting to free cash tied up in existing equipment, refinance or sale‑and‑leaseback converts assets into working capital.

Vendor / manufacturer finance

Some manufacturers or dealers offer tailored finance deals on new machines; they may be competitive for new purchases but compare carefully.

Different lenders specialise in different products: high‑street banks often support HP and chattel mortgages for new kit; specialist asset finance houses and brokers handle used machinery, refinance and complex deals.

Learn more about general asset finance options on our asset finance overview: asset finance.

Typical terms, deposits, rates & worked example

Indicative ranges (subject to lender underwriting):

• Deposit: 0–30% (used equipment frequently requires higher deposit).
• Term lengths: 12–84 months (common 36–60 months for machine tools).
• Advance rates: often 70–100% of invoice for new equipment; lower for second‑hand kit depending on age/value.
• Indicative APRs: variable by lender, asset age and credit profile — always labelled indicative and not guaranteed.

Worked example (indicative)

Machine cost: £120,000. Deposit: 10% (£12,000). Amount financed: £108,000 over 60 months. A simple example HP monthly estimate (principal + interest) might be around £2,200–£2,500 — depends entirely on rate and exact terms. This is illustrative only; ask lenders for a personalised quote.

Note: final rates depend on business turnover, credit status, asset age and lender appetite.

Eligibility — what lenders commonly look for & documents to prepare

Most asset finance lenders for manufacturers expect applicants to be limited companies with a trading history and turnover above certain thresholds. UK Business Loans typically arranges facilities from around £10,000 upwards.

What lenders check

• Business trading history (often 12–24 months minimum; varies by lender).
• Turnover and profitability — lenders want to see ability to repay.
• Director(s) credit profile and personal guarantees (sometimes required).
• Sector and use-case — production vs rental vs training use.
• Asset value, age and maintenance history.

Documents to prepare

• Supplier quote or pro‑forma invoice for the machinery.
• Last 2–3 years’ accounts (or less for newer companies — management accounts help).
• Recent business bank statements (typically 3 months).
• Proof of VAT status (if reclaiming VAT).
• ID for directors and company registration details.
• Service history/warranty documents for used machinery.

Quick copyable checklist:

Supplier quote or invoice
2–3 years accounts (or management accounts)
3 months bank statements
Director ID and details
Service/warranty history for used kit
VAT registration proof
  

New vs used machinery — what lenders care about

Lenders treat new and used machines differently:

• Age limits: many lenders set a maximum asset age at maturity — older used machines may be ineligible for standard products.
• Valuation: specialist valuers or dealers may be needed to verify resale value and condition.
• Service & warranty: full service history and spare parts availability improve acceptability.
• Interest rates & deposits: older assets usually require larger deposits or shorter terms.

Tip: a recent full-service record and a reputable dealer invoice materially improves finance options for used machine tools.

Risks, tax & practical considerations

Understand the practical risks before committing:

• Repossession: finance is secured on the asset — missed payments can lead to repossession.
• Insurance and maintenance: most agreements require adequate insurance and may require maintenance schedules.
• Residual value risk: for leases, you may face a residual value if you keep the asset beyond term.
• Technology risk: rapid tech change can affect resale — consider upgrade pathways or short-term lease options.

Tax note: machine purchases can qualify for capital allowances including the Annual Investment Allowance (AIA) — consult your accountant for specific tax treatment of HP vs lease.

How UK Business Loans helps — our matching process

We are an introducer (not a lender). Our role is to match your financing need with lenders and brokers who specialise in manufacturing equipment finance so you can compare options quickly and without searching the market yourself.

1. Complete our short enquiry form (under 2 minutes) with basic business and asset details.
2. We match you to lenders/brokers in our panel who specialise in machine tool finance.
3. Selected partners contact you with tailored quotes and next steps; you choose which offers to proceed with.

Many businesses receive responses quickly; exact times vary by partner and complexity of the request.

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Step-by-step application checklist (what to prepare now)

What you’ll need to start an enquiry:

1. Supplier quote or pro‑forma invoice for the machine(s).
2. Estimated deposit or trade-in value (if any).
3. Brief summary of business turnover and years trading.
4. Recent management accounts or last filed accounts.
5. Director contact details and ID.
6. Intended use of asset (production, contract work, hire).

Cost comparison & quick decision guide

Presenting a simple comparison (consider adapting to a responsive table on your page):

Decision rule: if you want to own and claim capital allowances → HP or chattel mortgage. If you prefer short-term use or regular upgrades → operating lease or short finance lease.

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FAQs

Can I finance used CNC machines, lathes or presses?

Yes. Many lenders finance used machinery but may limit the maximum age, require a service history and ask for a higher deposit or shorter term. Specialist lenders are often best for second‑hand kit.

Do I need a deposit?

Some deals can be financed with no deposit, but deposits of 5–30% are common depending on asset age and lender appetite.

Will applying affect my business credit score?

Submitting an enquiry through UK Business Loans does not affect your credit score. Lenders may perform credit checks later if you progress with an application.

What if my business has imperfect credit?

We work with brokers and lenders who consider a wide range of circumstances. Eligibility will vary; provide honest details for the best matches.

How quickly can I get funding?

Times vary by lender and complexity. Simple HP or lease for new equipment can be completed in days; complex or refinance deals for used assets may take longer. Provide full documentation to speed the process.

Are lenders UK-wide?

Yes — our partners cover the whole UK, including regional and specialist finance houses for manufacturing.

Ready to explore finance for your machine tools?

Complete our quick enquiry to get matched with lenders and brokers who specialise in manufacturing asset finance — it’s free and no obligation. We’ll use the details you supply to connect you with partners who can provide tailored quotes for CNC machines, lathes, presses and related equipment.

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Compliance note: UK Business Loans is an introducer — we do not lend money or provide regulated financial advice. We match enquiries to lenders and brokers who will contact you if you complete an enquiry. Lenders/brokers will perform their own checks and may carry out credit searches if you progress with an application. Our service helps you compare options; it is free and there is no obligation to proceed.