Finance Options for Manufacturers
Plant and Machinery Finance
CNC machining centres, lathes, milling machines, press brakes, laser cutters, injection moulding machines, extrusion lines, robotic welding cells, and manufacturing automation equipment can all be financed through hire purchase or finance lease. Monthly payments spread across the productive life of the asset - typically 3 to 7 years - with same-day credit decisions for most applications. We arrange plant and machinery finance from £25,000 for a single machine to £10m+ for production line installations.
Sale and Leaseback of Existing Plant
If your business owns plant and machinery outright, a sale-and-leaseback facility releases the capital tied up in those assets without removing them from the factory floor. The funder purchases the equipment at an agreed valuation and leases it straight back to you. The released cash goes directly into the business as working capital, growth investment, or debt refinance. A highly effective tool for asset-rich, cash-light manufacturers.
Invoice Finance for Manufacturers
Manufacturing businesses typically supply B2B customers on 30-90 day payment terms. Invoice finance releases cash against raised invoices within 24 hours, eliminating the working capital gap between despatch and payment. Confidential invoice discounting allows you to maintain control of your credit control function, with the facility invisible to customers. Particularly valuable for manufacturers supplying large retailers or blue-chip corporates with long payment terms.
Working Capital and Stock Finance
Raw material purchasing, work-in-progress inventory, and finished goods stock all tie up working capital. A revolving credit facility or stock finance line allows you to fund the production cycle without disrupting your cash position. We arrange working capital facilities from £25,000 to £2m+ depending on turnover and security.
R&D and Capex Finance
New product development and capital investment in tooling, moulds, and prototype equipment can be financed through structured term loans or asset finance. Where R&D Tax Credits are available, some lenders will advance against the expected credit refund, providing cash flow support during the development phase.
What Manufacturing Lenders Assess
Specialist manufacturing lenders assess: the type and condition of plant and machinery (hard assets hold value better than soft assets); debtor book quality and customer concentration; order book and forward contract visibility; raw material stock composition; and the management team's sector experience. UK manufacturing businesses that export may also qualify for UK Export Finance (UKEF) backed facilities.