Yes. Sawmill equipment is financeable, though how it is funded depends on what you are buying. Mobile and portable sawmills behave like ordinary machinery assets and are relatively straightforward. Static mill installations, with foundations, infrastructure and integrated lines, are larger projects and are usually structured differently.
Mobile band mills, log handling equipment, debarkers, resaws, edgers, kilns and timber handling machinery can generally be considered on hire purchase or lease. The lender’s questions will be the familiar ones: what it is, what it costs, who you are buying from, and how the mill will generate the income to pay for it.
Where a project involves civil works, buildings, three-phase power and a production line rather than a single machine, expect the funding to be split. The identifiable machinery may go on asset finance while the building and groundworks are funded by a loan or a facility secured on property — and if it is secured on property, that property is at risk if payments are not maintained. Sawmill machinery can be financed, whether static or mobile. Projects that combine machinery with buildings or groundworks can also be arranged, but they are less standard and the structure depends on what proportion is plant and what is fixed to the land — so get in touch and we will work out how best to put it together.
Think hard about throughput and market before committing. Milling is capital intensive, timber prices move, and a large agreement over several years is exposed to demand you cannot control. Model the payments against a conservative view of output rather than the machine’s rated capacity. Approval is never guaranteed and every application depends on the lender’s assessment of you, your business and the asset.
CW Asset Finance is an independent credit broker, not a lender. We are based in Tadcaster, North Yorkshire, and work with farms, estates, contractors and rural businesses across West Yorkshire, North Yorkshire and the wider UK through a panel of 60+ lenders. CW Asset Finance is an Appointed Representative of Rural Finance Limited, which is authorised and regulated by the Financial Conduct Authority (FRN 630701). We are a member of the NACFB. Finance is subject to status and acceptance; approval is never guaranteed. Where borrowing is secured on land or property, that property is at risk if repayments are not maintained. Tax treatment depends on your individual circumstances and may change — speak to your own accountant.