01
Install machinery or automation
Add CNC equipment, fabrication machinery, robotics or production technology that improves capacity, consistency or unit economics.
UK industry finance guide
Engineering and manufacturing finance
Engineering and manufacturing companies can have substantial cash tied up in machinery, tooling, raw materials and work in progress. Finance should be matched to the useful life of the investment and to the point at which additional production turns back into collected cash.
Five realistic funding moments
What could finance help the business do?
Start with the commercial requirement rather than the product name. The amount, timing and expected payback will narrow the structures worth considering.
02
Purchase raw materials and components
Secure the inputs needed for confirmed work, bulk pricing or a seasonal production run before finished goods are invoiced and paid.
03
Fund tooling, prototypes and certification
Meet the upfront cost of jigs, moulds, design work, testing or quality approvals required to bring a product or contract into production.
04
Create capacity for a larger order
Add shifts, skilled employees, subcontracted processes or temporary space to deliver a valuable order without weakening normal operations.
05
Improve premises and energy efficiency
Invest in extraction, power, lighting, heat recovery, storage or a planned move that supports a safer and more efficient operation.
Match structure to purpose
Finance routes commonly considered in this industry.
These are general examples, not a recommendation or indication of approval. Suitability depends on the applicant, agreement, cost, security and ability to repay.
Asset finance
Often considered for machinery and production equipment because the term can be aligned more closely with the asset being funded.
Understand this structureStock and trade finance
Can support eligible purchases tied to a credible stock-to-sale or confirmed-order cycle, subject to supplier and transaction evidence.
Understand this structureInvoice finance
May help when cash is tied up in eligible invoices to established business customers after goods have been delivered and accepted.
Understand this structureBusiness term loan
Can fit tooling, certification, premises works or another project with a defined budget and a credible route to repayment.
Understand this structureWhat providers may examine
The operating realities behind the numbers.
Lead times absorb working capital
Materials, production and quality checks may all occur before the business can issue an invoice.
Assets must earn their repayments
A machine can increase output, but demand, utilisation, labour and maintenance determine the actual payback.
Margin can move during production
Energy, materials, rework and currency changes can erode the cash expected from a fixed-price order.
A few customers may drive the order book
Concentration can create strong visibility while increasing the impact of a cancellation or delayed payment.
Common questions
Before choosing a funding route.
Business finance is subject to status, affordability and provider criteria. Check total cost, security, guarantees and early-repayment terms before entering an agreement.
Initial funding check
Discuss the requirement, not just a product.
Provide the essentials and the enquiry will be reviewed against the purpose, trading position and finance structures that may be relevant. Submitting this form is not a finance application.
No credit search is carried out when you submit the initial enquiry.
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