The equipment
- Include
- Machine specification and accepted supplier cost
- Check
- Title, delivery and acceptance conditions
MANUFACTURING MACHINERY FINANCEInvest in production.
Invest in production.
Plan the ramp-up.
A machine starts costing money before it produces a sale. Bring the purchase, installation, commissioning and working-capital requirements into one investment plan.
Discuss machinery investment
SUBSTANTIAL FUNDING / ESTABLISHED COMPANIES
THE COMMERCIAL STARTING POINT
Machinery finance can help an established manufacturer acquire eligible production equipment while spreading the capital cost. NBS focuses on substantial £250k+ purchases and programmes, with the structure assessed against asset value, useful life, delivery and business cash generation.
Invoice finance £500k+ · Asset finance £250k+ · Business loans £200k+. Focus amounts, not fixed eligibility thresholds.
01 / THE COMMERCIAL DETAIL
Separate the machine from the whole project
The ramp-up
- Include
- Installation, tooling, training and operating cash
- Check
- Which costs sit outside the finance agreement
A supplier quote may cover equipment but exclude installation, tooling, freight, factory works, operator training or commissioning. Some items may not be accepted as financeable assets. Identify them before deciding the business’s cash contribution.
Imported or bespoke machinery can create deposits, currency exposure and acceptance conditions before productive use. Agree when ownership passes, who accepts delivery and whether funds can be released at each stage. A supplier’s payment timetable does not establish lender draw availability.
02 / THE COMMERCIAL DETAIL
Match the repayment profile to the investment
- 01
Deposit
Cash committed before productive use.
- 02
Delivery
Acceptance and provider draw conditions.
- 03
Commission
Installation, testing and training.
- 04
Production
Revenue and cash generation ramp up.
Compare the finance term with expected productive life and a realistic ramp-up. Production delays, customer qualification and training can postpone cash benefits. A forecast should test a slower start and show how repayments are met during it.
Hire purchase and leasing have different ownership and end-of-term implications. Ask how a balloon, seasonal payments or any proposed payment deferral changes total cost and future exposure. Such features must be agreed, rather than assumed from the purpose of the investment.
03 / THE COMMERCIAL DETAIL
Keep working capital in the picture
Higher output may require more raw material, work in progress and debtor funding. Using all spare cash as a machinery deposit can leave a profitable project short of operating cash. Assess equipment funding alongside the receivables cycle.
For existing equipment, a refinance needs ownership checks, a supportable valuation and settlement of current debt. Specialist or immovable assets may have a lower recoverable value than their replacement cost. A strong business case does not make every cost financeable.
HYPOTHETICAL EXAMPLE / NOT A CLIENT CASE
The equipment price is not the cash requirement
Equipment contribution£120k10% of a £1.2m purchase
+Outside project costs£150kInstallation £120k + training £30k
+Equipment VAT£240kAssumed 20% on equipment price
Cash before operating needs£510kAssumes £1.08m equipment finance; other project VAT needs separate checking.
Hypothetical illustration only. Not a client case, quote, lender policy or funding commitment.
A hypothetical production line costs £1.2m excluding VAT. A 10% contribution leaves £1.08m of equipment finance. Assume £120k installation and £30k training are outside the finance agreement, with £240k VAT on the equipment price. Before operating cash, the business needs £510k for the contribution, those project costs and equipment VAT unless separately agreed arrangements change their timing. Other project VAT and tax treatment require separate checking.
Illustrative assumptions only. Not a quote, provider policy or funding commitment.COSTS, SECURITY & PRACTICAL CONSTRAINTSKnow the cash.
Know the cash.
Know the commitment.
Include deposit, VAT timing, documentation, total repayments and end-of-term obligations. Ask about supplier-stage payments, inspection costs and guarantees. Check whether existing security holders must consent and whether replacement machinery can be removed or sold under the proposed agreement.
Understand facility fees and costs ↗For the next stage of assessment
- Itemised supplier quote, technical specification and asset location
- Deposit, import, delivery and commissioning schedule
- Project forecast with slower-production sensitivity
- Existing equipment finance, ownership and contribution details
The brief enquiry does not require these documents. Agree the purpose, permissions and appropriate sharing route first.
BEFORE YOU PROCEEDThe questions
The questions
worth settling.
Can installation and training be included?
Only if the provider accepts those costs within the proposed structure. Identify costs outside the agreement and how they will be paid.
Can used machinery be financed?
Potentially. Age, condition, supplier, valuation, useful life and resale market affect the assessment.
Can repayments start after commissioning?
Discuss the requirement early. Any delay or staged payment profile is subject to provider agreement and may change cost.
PRODUCT CONTEXT / FURTHER READINGBritish Business Bank: purchasing a major asset ↗PMD: manufacturing finance ↗
These external sources explain product features. They do not establish an NBS agreement, current lender appetite or terms available to your business. Content reviewed 24 October 2026.
A CLEAR BRIEF IS THE STARTA substantial requirement.
A substantial requirement.
A useful conversation.
Discuss machinery investment
Start with a brief enquiry.
No financial documents needed to begin.