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CW Asset Finance | Vehicle & Equipment Finance Yorkshire

Asset refinance and sale and leaseback

Machine tool refinance

A well-specified machining centre outlives several business cycles, and once it is paid off it quietly becomes one of the most bankable things a subcontractor owns.

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BarclaysAldermoreParagonAllica BankPraetura Asset FinanceSimply Asset FinanceOxburyBraemar FinanceBibby Financial ServicesBPCE Equipment SolutionsCatfoss FinanceDavenham Asset FinanceFleximizeiwocaKingsway Asset FinanceLombardMetro BankBNP ParibasBarclaysAldermoreParagonAllica BankPraetura Asset FinanceSimply Asset FinanceOxburyBraemar FinanceBibby Financial ServicesBPCE Equipment SolutionsCatfoss FinanceDavenham Asset FinanceFleximizeiwocaKingsway Asset FinanceLombardMetro BankBNP Paribas

Can you finance a machine tool re?

Machine tool refinance raises capital against CNC equipment a business owns outright. A funder values the machining centre, lathe or grinder, purchases it and leases it back, so the machine stays on the shop floor and in the schedule without a single hour lost. The machine must be clear of any outstanding agreement. Values are set by international trade demand, which is why well-known Japanese, German and Taiwanese builders release far more than obscure marques. Tooling, pallets and probing systems are usually assessed as part of the package rather than separately.

Used kit: Yes — machine tools are exceptional for this, and a properly maintained machine from the nineties can still carry a meaningful advance because the export market keeps buying them.

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What would a machine tool re cost per month?

Business asset finance is quoted on a flat rate, so that is what this shows — with the equivalent APR underneath, because the two are not the same number. A quick guide only; your actual rate depends on the asset, term, deposit and lender.

Indicative flat rate
Approx. monthly£—
Get my exact rate
Total repayable£—
Cost of finance£—
Equivalent APR—%

Representative example: on Hire Purchase, borrowing £25,000 over 48 months at a 6.0% flat rate (equivalent to 11.5% APR representative), you would repay around £646 a month; total amount repayable approximately £31,000, of which £6,000 is the cost of finance. This calculator is for illustration only — it is not a quote or an offer of finance, and the rate and repayments you are offered will depend on the asset, term, deposit and your circumstances. CW Asset Finance is a credit broker, not a lender, and may receive a commission from the lender that funds your agreement. All finance is subject to status, affordability and lender approval. CW Asset Finance is an Appointed Representative of Rural Finance Limited, which is authorised and regulated by the Financial Conduct Authority (FRN 630701).

How lenders treat it

Machine tools refinance well because the global used market for them is genuinely liquid, with dealers, auction houses and export buyers all active. Funders assess the specific builder and model before anything else, because a recognised machine sells worldwide while a rebadged or heavily customised one does not. Control age matters too: a machine whose control is obsolete and unsupported is harder to place. Practical issues are considered as well — whether the machine can be disconnected and lifted out, and whether the landlord has any claim over it where the unit is leased. Title is proven with the purchase invoice and the machine serial number. Expect a direct question about the use of funds, since refinance to add capacity is welcomed and refinance to cover creditors is not. Your accountant should review the disposal treatment.

Makes and models we fund

Examples of the machines we are asked to fund. This is not an exhaustive list — if what you are buying is not here, it does not mean we cannot fund it. Your supplier quote is what the agreement is written against.

MachineWhat it is
Haas VF-3 machining centreVertical machining centre owned outright
Haas ST-20 turning centreCNC lathe owned outright
Mazak Integrex i-200Multi tasking machining centre
DMG Mori NLX 2500 turning centreCNC turning centre
Hurco VMX42i machining centreThree axis machining centre
Doosan DNM 5700 machining centreVertical machining centre
Studer S33 cylindrical grinderPrecision cylindrical grinding machine
Amada HFE press brakeCNC press brake owned outright
Trumpf TruLaser 3030Fibre laser cutting machine
Okuma Genos M560 machining centreCNC machining centre owned outright

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Who buys one

Generally a precision subcontractor with a shop full of machines bought over fifteen years, most long since paid for. The trigger is usually a new customer requiring capacity, an aerospace or medical approval to fund, or the deposit on a five-axis machine that will not arrive for months.

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How it is treated for tax

Bought on hire purchase, business plant and machinery normally qualifies for capital allowances on the full cost even though you pay for it monthly, which is a large part of why hire purchase is the common structure. On a finance lease you generally set the rentals against profit instead. The rules change between budgets and your position depends on how you trade, so treat this as the direction of travel and get your accountant to confirm the detail before you commit.

Machine tool refinance questions

Does an obsolete control reduce what I can raise?

It can. A machine running a control the manufacturer no longer supports is harder for a trade buyer to service, which narrows demand and pulls the valuation down. The mechanical condition of the machine still counts, but the control is part of the assessment.

Is tooling included in the valuation?

Usually only loosely. Toolholders, chucks and fixtures have value but they are consumable and hard to verify, so funders tend to treat them as part of the machine rather than adding them up individually. Pallet systems and probing are viewed more favourably.

We rent our unit. Does that matter?

It may. Because the machine sits in a building you do not own, a funder can ask your landlord to confirm in writing that it has no claim over the equipment and that access could be obtained. Most landlords sign these routinely once asked.

Can I refinance one machine and leave the rest alone?

Yes. Single machine refinance is common, particularly where one high-value machining centre is worth more than everything else on the floor combined. You evidence that one machine and the rest of your equipment is untouched.

What happens to capital allowances we have already claimed?

Disposing of the machine can trigger a balancing adjustment on allowances previously claimed, and the effect depends on your pools and your profits. It is a genuine consideration rather than a formality, so ask your accountant to model it before you commit.

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Also in asset refinance and sale and leaseback

See everything we fund in asset refinance and sale and leaseback →

Not an offer of finance. All finance is subject to status, affordability and lender approval.

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Tell us what you’re looking to fund and Conor will come back to you personally — usually the same day.

Prefer to talk? Call 07581 364281 · serving Leeds, York, Harrogate, Wakefield, Selby, Tadcaster & across North & West Yorkshire.