Loans Hub · Business Finance by Industry
Business Loans for Manufacturing
Funding for manufacturers and engineering firms — machinery, plant, raw materials and expansion. Compare asset finance and working-capital loans from a whole-of-market UK panel.
Why manufacturers borrow
Capital intensity and long production cycles define the sector. Borrowing commonly funds:
- CNC machines, plant and production equipment.
- Raw materials for large or seasonal orders.
- Bridging the gap between production and payment.
- Factory expansion or new production lines.
- Automation and efficiency upgrades.
How much can a manufacturer borrow?
Manufacturers are often asset-rich, supporting larger borrowing against plant and machinery. Asset finance is sized on the equipment, while working-capital and unsecured facilities track turnover. A firm with strong order books and valuable plant can assemble substantial funding across several facilities.
What lenders look at for manufacturers
Lenders assess order books, the value of plant and machinery, and how reliably customers pay. Signed contracts and a healthy pipeline reassure them, and existing equipment can secure cheaper borrowing. A clear link between the funding and a profitable order is the strongest case.
Best finance options for manufacturing
Asset finance spreads the cost of machinery over its working life and can release cash from kit you already own. An unsecured business loan funds materials and working capital, invoice finance bridges slow-paying customers, and the Growth Guarantee Scheme can back larger investment.
Funding a big order
Winning a large contract can strain cash flow before it rewards it — you buy materials and run production months before payment. Order or trade finance, or a working-capital loan, bridges that gap so a growth opportunity does not become a cash crisis.
Compare your finance options
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Frequently asked questions
Can I finance manufacturing machinery?
Yes. Asset finance is the standard route for CNC machines, plant and production equipment, spread over its working life. You can also refinance kit you already own to release cash.
Can I borrow to fulfil a large order?
Yes. Trade, order and working-capital finance are designed to bridge the gap between buying materials, producing goods and being paid.
How much can a manufacturer borrow?
Asset finance is sized on the equipment, with additional unsecured or secured borrowing tracking turnover and assets — often well into six figures.
Can manufacturers use the Growth Guarantee Scheme?
Yes. The government-backed scheme supports manufacturing investment, including equipment and expansion, for viable firms.