Finance for engineering businesses: CNC machines, tooling & specialist equipment

CNC machining centres, turning centres, and milling machines are typically financed using hire purchase (HP) or finance lease. With HP you own the machine outright once all payments are made; with finance lease the lender retains ownership and you pay a rental. Both allow you to spread the cost over 12–84 months without tying up working capital. Sorbus Finance can consider options from specialist engineering equipment lenders and mainstream banks on its panel.

Yes. Engineering businesses that invoice other businesses on credit terms are well-suited to invoice factoring or invoice discounting. These facilities allow you to access up to 90% of an invoice value within 24 hours rather than waiting 30–90 days for payment. Invoice discounting is particularly popular in engineering as it is confidential, meaning your customers are unaware of the arrangement.

For established engineering businesses with clean credit, many lenders will fund 100% of the asset value, meaning no deposit is required. Where a deposit is asked for, it is typically 10–20% of the asset value. Providing audited accounts and strong trading history can often eliminate the need for a deposit entirely.

Yes. Many specialist asset finance lenders will fund used engineering equipment, including ex-demonstration machines and older machinery. The age and condition of the asset, and the existence of a verifiable market value, will influence which lenders are available and on what terms. Refinancing against equipment you already own is also possible.

Yes, though with more restrictions. Start-up and early-stage engineering businesses (under 2 years trading) may find that fewer lenders are available and that a deposit of 20–30% is required. Where the director has strong personal credit and relevant experience, some specialist lenders will still support early-stage businesses. We will advise on the most appropriate lenders for your situation.

Yes. Sale and hire purchase leaseback (sale and leaseback) allows you to sell equipment you own outright to a finance company, then hire it back. The cash released can be used for working capital, growth investment, or any other business purpose. This is commonly used by engineering businesses to unlock equity in older machinery without having to dispose of it.