Can I use UK Business Loans equipment finance to fund packaging lines and labelling equipment?

Quick answer: Yes — most packaging lines and labelling machinery can be financed with equipment finance. UK Business Loans helps you get a free eligibility check and quick quotes by matching your business with specialist lenders and brokers. Get Quote Now — Free Eligibility Check

Get Quote Now — Free Eligibility Check
UK Business Loans is an introducer — we do NOT lend or provide regulated financial advice. We connect you with a panel of lenders and brokers. Completing an enquiry is free and will not affect your credit score.

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Table of contents

• Summary: can packaging & labelling equipment be financed?
• Why manufacturers use equipment finance for packaging & labelling
• What finance options are available
• What packaging and labelling equipment lenders will fund
• Eligibility: what lenders and brokers will ask for
• Step-by-step: from enquiry to funding
• Costs & commercial considerations
• Risks, maintenance & insurance
• Real-life examples
• FAQs
• Final CTA & trust
• Resources & image suggestions

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Summary: can packaging & labelling equipment be financed?

Yes — equipment finance is one of the most common ways for UK manufacturers to acquire packaging lines and labelling machinery. Whether you need a complete automated packaging line, a high-speed labeller, conveyor systems, vision inspection equipment or ancillary kit (printers, applicators, palletisers), specialist asset lenders and brokers can structure solutions (hire purchase, leasing, sale & leaseback, refinance) to spread cost and preserve cashflow.

UK Business Loans does not provide finance itself — we match your business to lenders and brokers who can provide quotes quickly. To get a free eligibility check and bespoke quotes, complete a short enquiry now: Get Quote Now — Free Eligibility Check.

UK Business Loans is an introducer — we do NOT lend or provide regulated financial advice. We connect you with a panel of lenders and brokers. Completing an enquiry is free and will not affect your credit score.

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Why manufacturers use equipment finance for packaging & labelling

Financing packaging and labelling equipment is popular because it lets businesses buy the kit they need without a large cash outlay. Typical benefits include:

• Preserve working capital — keep cash for raw materials, payroll and growth.
• Spread cost — predictable monthly payments over the asset’s useful life.
• Match finance term to asset life — choose terms that reflect depreciation and technology cycles.
• Flexible end-of-term options — buy, refinance, upgrade or return depending on the contract type.
• Potential tax/GAAP advantages — discuss specifics with your accountant (see HMRC guidance on capital allowances).

Use cases:

• Installing a new automated packaging line to increase throughput.
• Replacing ageing labellers to improve speed and accuracy.
• Adding inspection/vision systems to reduce wastage and recalls.
• Seasonal capacity increases where short-term rental or lease works better.

Typical asset values and lifespans

• Small labellers, printer-applicators: ~£10,000–£40,000; useful life 5–7 years.
• Medium packaging lines (semi-automatic): ~£50,000–£250,000; useful life 7–10 years.
• High-speed automated lines (full line, robotics, conveyors): £250,000+; useful life 7–12 years.

Get Started — Free Eligibility Check
UK Business Loans is an introducer — we do NOT lend or provide regulated financial advice. We connect you with a panel of lenders and brokers. Completing an enquiry is free and will not affect your credit score.

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What finance options are available

Different finance structures suit different needs. Below is a plain-English overview of common types and where they work best.

Hire Purchase (HP)

• How it works: you pay monthly instalments and own the asset after the final payment.
• Pros: straightforward, eventual ownership, often lower cost than unsecured loans.
• Cons: asset appears on balance sheet; responsibility for maintenance and insurance.
• Typical terms: 2–7 years.

Finance Lease / Operating Lease

• How it works: rental-style contract; you use the equipment for an agreed term.
• Pros: may keep liability off balance sheet (depending on accounting rules); good for short-life tech.
• Cons: you don’t usually own the asset at term end; contract terms vary.
• Typical terms: 1–5 years for operating leases; finance leases similar to HP durations.

Sale & Leaseback / Asset Refinance

• How it works: you sell equipment to a funder and lease it back, unlocking capital tied up in assets.
• Pros: immediate cash injection, preserves operations with no downtime.
• Cons: reduces asset ownership; commercial terms vary by lender.

Commercial loans / secured lending

• How it works: broader lending where the equipment may be one of several security items.
• Pros: may be suitable for larger programmes combining building works, working capital and assets.
• Cons: underwriting can be more detailed and take longer.

Quick tip: hire purchase is often preferred when you plan to keep the equipment, whereas leasing fits businesses prioritising cashflow or wanting easier upgrades.

Free Eligibility Check
UK Business Loans is an introducer — we do NOT lend or provide regulated financial advice. We connect you with a panel of lenders and brokers. Completing an enquiry is free and will not affect your credit score.

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What packaging and labelling equipment lenders will fund

Most asset finance lenders will consider funding a wide range of packaging and labelling equipment, including:

• Conveyors and material handling systems
• Form-fill-seal (FFS) machines, vertical and horizontal packaging lines
• Case packers, cartoners and case sealers
• Label applicators (pressure-sensitive, tamp, wrap-around), thermal printers and print-and-apply systems
• Robotic palletisers and depalletisers
• Inspection, vision and checkweighing systems
• Shrink tunnels, heat sealers and capping machines

Condition and age: many lenders fund new equipment and good-quality used kit. Typical age limits vary (commonly under 7–10 years at the end of term). Highly bespoke assets with poor resale value or items with regulatory/environmental complications can be harder to place.

What lenders usually check: supplier quotation, equipment photos/specifications, maintenance records and end-user details. Consumables (film, labels, inks) are usually classed as working capital and are not funded via asset finance.

If you manufacture and want further sector-specific options see our manufacturing loans page for related guidance.

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Eligibility: what lenders and brokers will ask for

Typical criteria and documents lenders request:

• Company details: registered company, recent accounts, turnover and trading history.
• Business plan or description of how the equipment increases revenue (for new-capex projects).
• Supplier quotation or pro forma invoice with detailed specification.
• Bank statements and management accounts (usually 3–6 months).
• Details of any previous finance agreements and directors’ ID where required.

Credit profile: lenders look at business and director credit. Some specialist lenders accept limited trading history or weaker credit but may require higher deposits or different structures — that’s where a broker can help.

Free Eligibility Check — Get Quotes from Specialist Lenders
UK Business Loans is an introducer — we do NOT lend or provide regulated financial advice. We connect you with a panel of lenders and brokers. Completing an enquiry is free and will not affect your credit score.

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Step-by-step: from enquiry to funding

1. Complete the short enquiry form (about 2 minutes).
2. We match your details to suitable lenders and brokers.
3. Lenders contact you for a quote — often within 24–72 hours.
4. Submit final documents, asset checks and supplier confirmation.
5. Agreement signed, funding arranged and equipment delivered/installed.

Typical timeframe: initial responses often come within hours during business days; full funding for straightforward deals can be completed in 1–4 weeks depending on complexity.

Start Your Enquiry — It takes 2 minutes
UK Business Loans is an introducer — we do NOT lend or provide regulated financial advice. We connect you with a panel of lenders and brokers. Completing an enquiry is free and will not affect your credit score.

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Costs & commercial considerations

What to compare when you get quotes:

• Monthly payment vs upfront deposit
• Term length and total cost of finance (not just headline rate)
• Balloon or residual payments at term end
• Fees: arrangement, documentation, early repayment penalties
• Insurance and maintenance obligations (many funders require full-cover insurance)

Representative rates vary by lender and business profile — actual terms depend on your company’s financials, the asset type and the structure chosen. Initial enquiries through UK Business Loans will not affect your credit score; lenders may carry out credit checks later in the process.

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Risks, maintenance & insurance

Key practical points:

• Obsolescence risk: automation and labelling tech can evolve quickly — consider upgrade options and maintenance contracts.
• Maintenance: lenders may insist on routine servicing to protect asset value.
• Insurance: funders commonly require full cover (All Risks/Specified Perils) naming the funder where appropriate.
• End-of-term: depending on contract you may buy the equipment, re-lease, return or agree a balloon payment.

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Real-life examples

Example 1 — Small food packer
A regional food manufacturer replaced manual labelling with an automated pressure‑sensitive applicator plus a vision inspection head. They used a 4-year hire purchase to spread the cost, preserving cash for raw ingredients. Result: fewer labelling errors and faster throughput.

Example 2 — Beverage bottler
A drinks company used sale & leaseback on an existing line to unlock working capital, then leased a new high-speed filler and labeller on a finance lease to expand capacity for a seasonal launch.

Get a No‑Obligation Quote
UK Business Loans is an introducer — we do NOT lend or provide regulated financial advice. We connect you with a panel of lenders and brokers. Completing an enquiry is free and will not affect your credit score.

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Frequently asked questions

Can I finance second‑hand packaging machinery?
Yes — many funders will finance good-quality used equipment. Age and condition influence terms.

How long does approval take?
Initial quotes often within 24–72 hours; full funding typically 1–4 weeks for straightforward cases.

Will the lender own the equipment?
It depends on the product: with a finance lease the funder retains ownership; HP usually transfers ownership to you at the end of term.

Does applying affect my credit score?
No — the initial enquiry through UK Business Loans will not affect your credit score; lenders may do checks later.

Are consumables or stock included?
Generally no — film, labels and inks are working capital and usually financed separately if at all.

What paperwork do I need?
Supplier quotation, recent accounts, bank statements and ID for directors where required.

Are there tax incentives for automation?
There are business tax rules (capital allowances) — consult your accountant or see HMRC guidance: HMRC capital allowances.

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Final call to action & trust

If you’re planning to buy or refinance packaging lines or labelling equipment, getting tailored quotes will help you compare cost and cashflow impact quickly. Submit a short enquiry and we’ll match you with lenders or brokers suited to your sector and needs.

Get Quote Now — Free Eligibility Check
UK Business Loans is an introducer — we do NOT lend or provide regulated financial advice. We connect you with a panel of lenders and brokers. Completing an enquiry is free and will not affect your credit score.

Phone: 01234 567890 (if you prefer to discuss first). We’ll treat your details securely — see our Privacy Policy.

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Additional resources & image suggestions

• Internal links: equipment finance, how it works.
• Suggested images (optimise to <100KB):
• images/packaging-line.jpg — alt=”automated packaging line with labelling machine”
• images/labeller-closeup.jpg — alt=”close-up of pressure-sensitive label applicator and thermal printer”
• images/process-diagram.jpg — alt=”diagram showing equipment finance process from enquiry to funding”
• Useful external reference: HMRC capital allowances: gov.uk/capital-allowances.

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Note: Representative examples depend on lender; actual terms depend on your business and credit profile. UK Business Loans is an introducer and does not provide regulated financial advice. We match enquiries to lenders and brokers who may contact you with offers.

1. Can I use equipment finance to buy packaging lines and labelling machinery?
Yes — most equipment finance lenders will fund packaging lines, labellers and ancillary kit subject to the asset’s age, condition and your business profile.

2. How do I get quotes via UK Business Loans and will it affect my credit score?
Complete the short free enquiry and we’ll match you to specialist lenders and brokers — the initial enquiry won’t affect your business credit score.

3. What types of finance are available for packaging and labelling equipment?
Common options include hire purchase, finance/operating leases, sale & leaseback, asset refinance and commercial loans depending on your cashflow and ownership goals.

4. Can I finance second‑hand or refurbished packaging machinery?
Yes — many funders accept good‑quality used equipment, though age, condition and resale value will influence terms and pricing.

5. How quickly can I expect quotes and funding for equipment finance?
Initial lender responses are often within 24–72 hours, with straightforward deals typically funding in 1–4 weeks depending on complexity.

6. What paperwork and eligibility criteria will lenders usually ask for?
Lenders commonly request a supplier quotation, company details and trading history, recent accounts, bank statements and director ID where required.

7. What costs should I compare when evaluating equipment finance quotes?
Compare monthly payments, term length, total cost of finance (not just headline rate), deposits or balloon payments, arrangement fees, and insurance/maintenance obligations.

8. Will the lender own the equipment during the contract?
Ownership depends on the product — finance leases usually mean the funder retains ownership, whereas hire purchase transfers ownership to you after the final payment.

9. Do lenders require maintenance and insurance for financed packaging equipment?
Yes — funders often require routine servicing and full insurance (naming the funder where applicable) to protect asset value and recoverability.

10. Are there tax incentives or capital allowances for purchasing automation and labelling equipment?
Potential tax benefits exist through capital allowances and other rules, so consult your accountant or HMRC guidance for specifics.