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CW Asset Finance | Vehicle & Equipment Finance Yorkshire

CNC and machine tool finance

Vertical machining centre finance

The workhorse of nearly every UK machine shop, and the easiest machine tool in the country to put a funder behind.

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Can you finance a vertical machining centre?

Yes. A vertical machining centre is funded as a hard asset, normally on hire purchase so the machine ends up owned outright, or on lease where the tax position suits that better. Used and ex-demo VMCs are funded as readily as new ones, because the second-hand market for them is deep and international. The thing that catches buyers out is the rest of the invoice. Tooling, workholding, a fourth axis, chip conveyor, installation and rigging are soft costs a funder may cap or strip out, so ask what is actually being advanced before you commit to the supplier.

Used kit: Yes — used VMCs fund easily, and machines from roughly the last fifteen years are routine provided the control is still supported and parts are available.

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What would a vertical machining centre 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

Funders like VMCs because they can place one almost anywhere. There is a standing dealer trade and a genuine export market, so recovery is a phone call rather than a project. Age matters far less than the control generation: a machine on a current Fanuc, Siemens or Heidenhain control that the OEM still supports is worth funding, while an orphaned control with no drives available is close to scrap regardless of spindle hours. They will treat the tooling and CAM licences as soft and discount them. They also know subcontract machining moves with aerospace, automotive and oil and gas, so a shop with one customer taking eighty per cent of turnover gets a harder look than one spreading risk. Declines cluster around new limited companies with no trading history buying a large machine as their first asset.

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-2Popular vertical mill for general subcontract work
Haas VF-4Larger vertical mill for longer components
Haas Mini MillCompact machining centre for small toolrooms
DN Solutions DNM 4500Rigid vertical centre for steady production
DN Solutions DNM 5700Bigger vertical mill for heavier parts
Hurco VMX42iVertical mill with conversational control
Brother Speedio S700XFast small part machine for high volumes
XYZ 1060 HDBritish supplied vertical mill for jobbing shops
DMG Mori CMX 1100 VVertical centre for mixed batch production
Mazak VCN-530CVertical centre for general engineering work

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Who buys one

Typically a subcontract shop of five to thirty people replacing a tired 1990s mill, or adding a second spindle because one machine has become the bottleneck on a repeat order. Often triggered by winning a schedule from a single customer who wants parts every month rather than in one batch. Also common with toolmakers, jig and fixture makers and one-man limited companies moving out of a hired unit into their own.

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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.

Vertical machining centre finance questions

Can I finance a VMC bought at auction?

Often yes, but it is harder than a dealer purchase. Funders want a clear invoice, a company or auctioneer they can pay directly, and a machine they can identify by serial number. Auction lots sold as seen with no warranty and no power-on test are the ones most likely to be refused, so speak to us before you bid rather than after.

Will the fourth axis and tooling be included in the finance?

Sometimes. A rotary table bought at the same time and listed on the same invoice usually goes through, because it is identifiable and has resale value. Cutting tools, holders, vices and CAM software are soft costs and some funders cap them as a proportion of the deal or exclude them entirely. It varies by funder, which is the point of shopping it around.

Do I need to have been trading for years to get a machining centre funded?

No, but it changes who will look at it. Established shops with filed accounts get the widest choice. A newer company can still be funded, usually where the directors have a track record in engineering, there is evidence of work to put on the machine, or a director guarantee is offered. We place these regularly; it is a question of matching the story to the right funder.

Is it better to fund a VMC on hire purchase or lease?

Hire purchase suits most buyers because the machine is on your balance sheet and yours at the end, which matters for an asset you expect to keep for a decade or more. Leasing can suit companies wanting the payments treated differently or planning to swap the machine sooner. Your accountant should be the one deciding this, not your salesman.

Can I finance a machine I am buying from another engineering firm?

Yes. Private sale between two limited companies is common in this trade, particularly when a shop closes. Funders will want proof the seller owns the machine outright and that there is no existing finance registered against it, plus an invoice from the selling company. An inspection or valuation is sometimes requested on higher value machines.

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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.