Common funding needs in the manufacturing sector
- Purchasing or refinancing CNC machines, presses and production lines
- Funding raw material purchases against forward order books
- Bridging the gap between production and customer payment
- Investing in automation, robotics and Industry 4.0 upgrades
- Funding R&D or new product introduction tooling
- Acquiring or refinancing factories and warehouses
Finance types that usually fit
Based on how UK lenders typically underwrite this sector, the following finance categories are the most common fit:
Asset Finance
Finance to buy/refinance equipment, vehicles or machinery.
Invoice Finance
Funding advanced against unpaid B2B invoices.
Secured Business Loan
Larger bespoke cashflow or asset-backed debt.
Unsecured Business Loan
Term loan or credit line repaid through fixed instalments.
Sector-specific eligibility blockers
- Bespoke machinery with limited resale market harder to fund on asset finance
- Long manufacturing cycles complicate invoice finance eligibility
- Highly customised customer contracts with stage-payments and warranty hold-backs
- Exposure to single OEM customer concentration
- Export receivables sometimes excluded by domestic invoice finance lenders
How routing usually works in manufacturing
Manufacturing routing is heavily asset and ledger-driven. Capital equipment goes to specialist asset finance providers; bespoke or non-standard kit may need a deposit increase or refinance route. Invoice finance is critical for the working-capital cycle and is well supported by Bibby, Skipton and Time Finance, which all have manufacturing books. Larger manufacturers with cashflow strength can access secured term loans from ThinCats. Premises purchase routes to commercial mortgage providers — Allica Bank and Shawbrook are common for industrial unit purchase. Export-led manufacturers should ask explicitly about international invoice eligibility before committing.
UK lenders active in manufacturing
The lenders below publish criteria consistent with funding businesses in this sector. Final approval is always subject to lender underwriting.
Lombard
Asset finance / HP
- Amount
- £25k+
- Speed
- Not disclosed
- Security / PG
- Security/guarantees may be required
- Data confidence
- Medium
Novuna Business Finance
Asset finance
- Amount
- Not disclosed
- Speed
- Not disclosed
- Security / PG
- Asset-backed
- Data confidence
- High
Propel Finance
Asset finance
- Amount
- Not disclosed
- Speed
- Contact within 1 working day
- Security / PG
- Asset-backed
- Data confidence
- Medium
Simply Asset Finance
Asset finance
- Amount
- £15k–£5m
- Speed
- Not disclosed
- Security / PG
- Asset-backed
- Data confidence
- High
Bibby
Factoring / invoice discounting
- Amount
- Not disclosed
- Speed
- Not disclosed
- Security / PG
- Invoice-backed
- Data confidence
- Medium
Skipton Business Finance
Factoring / discounting
- Amount
- Up to 90% invoice advance
- Speed
- Not disclosed
- Security / PG
- Invoice-backed
- Data confidence
- Medium
ThinCats
Cashflow / asset-backed lending
- Amount
- £1m–£30m
- Speed
- Not disclosed
- Security / PG
- Asset-backed / cashflow; up to 4x EBITDA
- Data confidence
- High
Frequently asked questions
- Can I finance second-hand CNC machinery?
- Yes, most UK asset finance lenders fund used CNC and similar plant up to typical age caps (often 10 years for general machinery). Specialist lenders go older where valuation evidence is strong.
- How does invoice finance work for manufacturers?
- The lender advances 80–90% of eligible invoices once goods are delivered and accepted. Underwriting weighs customer concentration, dispute history and contractual terms. UK manufacturers usually benefit from a whole-ledger facility rather than selective.
- Can I get finance for a contract before producing the goods?
- Purchase order or contract finance is a separate, niche product available from a small number of UK lenders. It funds production costs against a confirmed customer order, typically refinanced into invoice finance once the goods are delivered.
- What deposit will an asset finance lender want on production machinery?
- Typically 10–20% for established manufacturers buying mainstream equipment. Bespoke or single-purpose kit may attract 20–30%. Refinancing existing plant releases working capital and can carry zero deposit on suitable assets.
- Are export invoices eligible for invoice finance?
- Some UK lenders fund export receivables, often via specialist trade finance partners. Pricing differs and credit insurance may be required. Confirm with the lender at application stage if export sales are material.
Related use cases
Eligibility checks for this sector
Each finance type has its own eligibility signals. The pages below explain what UK lenders typically look at — criteria can change and final decisions are subject to lender underwriting.