For manufacturers and engineering firms
Manufacturing Finance
Manufacturing finance helps manufacturers buy machinery, fund raw materials for large orders and cover the long gap between production and payment.
Funding Plus compares lenders that fund manufacturers, from asset finance on CNC machines to facilities that grow with your order book.
- Machinery and plant finance
- Funding for raw materials
- Facilities that grow with orders
Reviewed by the Funding Plus team · Last updated October 2026
Step 1 of 3 · Manufacturing finance
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Cash Flow Challenges in Manufacturing
Manufacturers spend on materials and production long before customers pay, often on 60 to 90-day terms.
Long cash cycles
Materials, production, delivery and payment terms can add up to several months.
Expensive machinery
New equipment can cost hundreds of thousands of pounds.
Big orders
Winning a large contract means buying materials upfront.
Price swings
Raw material and energy costs change quickly.
The Best Funding Options for Manufacturing Businesses
Asset finance
Spread the cost of machinery, or release cash from equipment you own.
Trade and stock finance
Pay suppliers for raw materials and repay after the order is delivered.
Invoice finance
Release cash from invoices while customers take 60 to 90 days to pay.
Government-backed loans
Larger facilities for growth through the Growth Guarantee Scheme.
Example
A precision engineering firm winning a large order
An engineering firm wins a £400,000 order from a major customer on 90-day terms. It uses trade finance to buy £120,000 of materials, finances a new CNC machine on hire purchase and uses invoice finance once the first batch is delivered, keeping cash flowing through the whole contract.
Illustrative example, not a real customer or a quote.
What Lenders Look For
- Order book and customer concentration
- Age and value of existing machinery
- Gross margins and production efficiency
- Customer credit quality and payment terms
- Management accounts and forecasts
Manufacturing Finance FAQs
Can I release cash from machinery I already own?
Yes. Asset refinance lets you borrow against equipment you own outright.
What funding suits a large order?
Trade finance for materials, then invoice finance once you've delivered, is a common combination.
Do lenders finance used machinery?
Often, yes, particularly well-known brands with a strong resale market.
Is the Growth Guarantee Scheme available to manufacturers?
Yes, for eligible businesses through accredited lenders.
Find funding for your manufacturing business
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