Production equipment refinance
Manufacturing capital is often locked inside machines that were paid for years ago and have been quietly earning ever since, unnoticed by the balance sheet.
Whole-of-market — 60+ lenders searched, including
Can you finance a production equipment re?
Production equipment refinance is a way of converting owned factory machinery back into cash. The business sells a press, a moulding machine or a packaging line to a funder at an agreed value and immediately takes it back on hire, so production never pauses. It only works where the equipment is genuinely owned free of any charge or existing agreement. The amount raised reflects what the machine would realise if it had to be sold on and moved, which is why equipment with an active resale market raises considerably more than bespoke or heavily integrated installations.
Used kit: Yes — machine age is far less important than whether the model still commands trade demand, and a twenty-year-old injection moulding machine from a known builder often values better than a newer niche one.
Get a quoteor call 0333 772 4864
What would a production equipment re cost per month?
Asset finance is quoted on a flat rate, so that is what the buttons show, with the equivalent APR beside it. Your exact rate depends on the asset, the term, the deposit and the lender.
Prime is an established, profitable business with clean credit. Specialist covers newer businesses and credit that needs explaining — the asset itself carries part of the risk, which is why finance is often available where an unsecured loan is not.
Representative example: on Hire Purchase, borrowing £25,000 over 48 months at a 5.15% flat rate (equivalent to 9.9% APR representative), you would repay around £628 a month; total amount repayable approximately £30,150, of which £5,150 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 will receive a commission from the lender that funds your agreement. All finance is subject to status, affordability and lender approval.
Rates shown are indicative flat rates with the equivalent APR alongside — the two are not the same number. Indicative only and does not constitute a quote or an offer of finance. Subject to status and lender approval.
How lenders treat it
What separates a good production refinance from a difficult one is removability. A funder is asking itself whether, in a worst case, the machine could be disconnected, lifted out and sold, so anything bolted into a bespoke line, sunk into a foundation or reliant on a proprietary control system that nobody else runs will be valued cautiously or turned down. Recognised brands with international demand fare far better. Title evidence is non-negotiable: invoices, serial plates and confirmation no charge sits over the asset through a debenture. Landlord waivers are often requested where the factory is leased. Because you are formally disposing of an asset, there are book value and capital allowance consequences to work through with your accountant first.
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.
| Machine | What it is |
|---|---|
| Engel Victory injection moulding machine | Injection moulding machine owned outright |
| Arburg Allrounder 470 moulding machine | Plastics injection moulding machine |
| Schuler servo press | Metal forming servo press |
| Trumpf TruLaser 3030 | Sheet metal laser cutting cell |
| Amada LCG 3015 fibre laser | Fibre laser cutting machine |
| Ilapak Delta flow wrapper | Horizontal flow wrapping machine |
| Nordson powder coating plant | Powder coating line owned outright |
| Gema powder coating system | Automatic powder application booth |
| ABB IRB 660 palletising robot | End of line palletising robot |
| Fanuc M-410iB palletiser | Robotic palletising cell |
Get a quoteor call 0333 772 4864
Who buys one
Usually a subcontract manufacturer that invested heavily three or four years ago, cleared the agreements, and has now won volume it cannot serve without another cell. Rather than approach the bank for an overdraft increase, the directors would rather draw on the value already standing on the shop floor and keep the banking facility untouched for seasonal swings.
Get a quoteor call 0333 772 4864
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.
Production equipment refinance questions
Will a funder lend against a line I had built specially for us?
Usually not for the bespoke elements. Purpose-built rigs, conveyors and jigs have almost no resale value to anyone else, so they are stripped out of the calculation. The standard branded machines within the same line can still be refinanced on their own merits.
Does the machinery have to keep running through all of this?
It does, and it should. Refinance assumes continuous use. Nobody uninstalls anything, nobody attends site to remove it, and production schedules are unaffected. The change is contractual rather than physical.
Our factory is rented. Does that complicate things?
It can. Because the equipment sits in someone else’s building, a funder may want the landlord to confirm in writing that it has no claim over the machine and that access would be granted. It is routine paperwork but it is worth starting early.
How does this affect our accounts?
Selling an asset and hiring it back changes how it appears in your books and can trigger balancing charges on allowances already claimed. The effect depends on your own position, so it is a conversation to have with your accountant before signing anything.
Is there a limit on how many machines we can include?
No fixed limit, though every asset has to be evidenced individually with its own invoice and serial number. Bundling several machines into one arrangement is common and often produces a better overall outcome than refinancing one at a time.
Get a quoteor call 0333 772 4864
Also in asset refinance and sale and leaseback
- Plant refinance
- Commercial vehicle refinance
- Agricultural machinery refinance
- Handling equipment refinance
- Mixed asset portfolio refinance
- Sale and leaseback
- Capital release
- HGV fleet refinance
- Machine tool refinance
- Hire fleet refinance
- Equity release on plant
- Refinance to fund growth
- Refinance for a VAT bill
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.
Get your quote
Tell us what you’re looking to fund and Conor will come back to you personally — usually the same day.
Prefer to talk? Call 0333 772 4864 · serving Leeds, York, Harrogate, Wakefield, Selby, Tadcaster & across North & West Yorkshire.