CNC lathe finance
Turning centres are the most traded machine tool in Britain, which is exactly why funders are comfortable with them.
Whole-of-market — 60+ lenders searched, including
Can you finance a CNC lathe?
Yes. A CNC lathe is funded as a hard asset, most often on hire purchase so you own it at the end. Second-hand lathes are readily fundable and there is an active UK dealer market that underwriters recognise. The usual surprise is on the extras. A bar feeder, parts catcher, high-pressure coolant, chuck jaws and a tooling package can add a substantial amount to the order, and funders treat those lines differently from the machine itself. Also check the control: a lathe running an obsolete control with no spares behind it is much harder to place than its age suggests.
Used kit: Yes — used CNC lathes are among the easiest machines to fund, with examples from the last fifteen to twenty years regularly placed where parts support exists.
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What would a CNC lathe 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 may 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
Turning centres are bread and butter to asset funders. There is constant dealer demand, machines move quickly at auction, and a funder can usually establish a value without leaving the desk. That liquidity is why the terms available on lathes tend to be broader than on niche kit. The two things they actually probe are the control generation and whether the builder still supports it; a well-maintained older machine on a supported control beats a newer one on an orphaned system. Tooling, holders and any CAM seats are soft and get discounted. Underwriters know subcontract turning tracks oil and gas, hydraulics and automotive, so they read the customer spread. Declines typically involve very old machines of no resale interest, or start-ups with no engineering background and no work in hand.
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 |
|---|---|
| Haas ST-20 | Turning centre for general subcontract work |
| Haas ST-10 | Compact lathe for smaller diameter parts |
| DN Solutions Puma 2600 | Heavy duty lathe for larger turned components |
| Okuma LB3000 EX | Rigid turning centre with driven tooling |
| Okuma Genos L250 | Value turning centre for jobbing shops |
| XYZ Compact Turn 52 | Small footprint lathe for British workshops |
| XYZ Compact Turn 65 | Bigger compact lathe for varied turning |
| Mazak QT-Nexus 200 | Turning centre for everyday production |
| Nakamura-Tome SC-200 | Precision lathe for tight tolerance turning |
| Hurco TM8i | Flat bed lathe with conversational programming |
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Who buys one
Usually a turning-led subcontractor moving off a manual or an ageing two-axis machine because a customer now wants tighter tolerances and repeatable batches. Often an engineer in their thirties or forties who has left a larger firm, taken a unit and needs their first proper machine. Also bought as a second spindle when a shop keeps quoting turned parts it cannot fit in around the mill.
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.
CNC lathe finance questions
Can you finance a CNC lathe for a brand new limited company?
It is possible and we do it, though the options narrow. Funders will look at the directors’ time in the trade, any work already committed, whether a deposit is available and whether a personal guarantee is on the table. A first machine for a genuinely experienced turner with orders lined up is a very different proposition from a speculative purchase.
Does adverse credit rule me out?
Not automatically. There are funders on our panel who will look past historic defaults, a CCJ, or a previous company that failed, particularly where the asset is as saleable as a lathe. It affects which funders will engage and the shape of the deal rather than ending the conversation. Tell us early so we go to the right people first.
Can I refinance a lathe I already own to release cash?
Often yes, provided you own it outright with no finance registered against it and the machine has enough value left to be worth a funder’s while. It is a common way to fund working capital or a deposit on a second machine. The machine will be valued conservatively, so expect a figure below what you would sell it for privately.
What happens if the machine needs parts in the first year?
That is between you and the supplier, not the funder. Finance is a payment arrangement for the purchase, and the warranty sits with whoever sold you the machine. This is one reason to buy from a dealer who will still answer the phone in eighteen months rather than the cheapest listing you can find.
Do I pay VAT upfront on a hire purchase agreement?
On hire purchase the VAT on the machine is generally due at the start, which catches buyers out when they have budgeted only the deposit. Some funders will fund the VAT for a short period until you reclaim it. Ask about this at the quote stage so the cash flow does not surprise you.
Get a quoteor call 0333 772 4864
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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.