CNC and engineering machinery finance more spindle time, less cash tied up

What is CNC machine finance?

CNC machine finance spreads the cost of a machine tool, laser, press brake or CNC router over a fixed term, so the machine can start earning before it is paid for. It is usually arranged as hire purchase or a finance lease, with the machine acting as the main security.

Machine tools are a good fit for asset finance because they tend to hold their value and lenders understand them. A well-known make of machining centre or lathe often has an active second-hand market, which gives a lender comfort and can widen the choice of terms. More bespoke kit, such as a special-purpose machine built for one customer's part, can still be funded, but lenders look harder at your trading and may want a larger deposit.

The real cost of a new machine is rarely just the price on the quote. Rigging and delivery, foundations, a power supply upgrade, chip conveyors, workholding, first tooling, CAM software and operator training can add a meaningful amount. Many lenders will include some of these costs in the agreement if they are on the supplier's invoice, which saves you funding them from cash.

As a broker, we are not tied to one lender. We look at the machine, its make and age, how your order book looks and what you want at the end of the term, then approach lenders on our panel that suit. For the bigger picture of funding a workshop or factory, see our manufacturing and engineering finance page.

Key features

What engineering firms fund with it

• CNC milling and five-axis machining centres
• CNC lathes, sliding head and turning centres
• Fibre laser, plasma and waterjet cutters
• Press brakes, guillotines and punching machines
• CNC routers, panel saws and edgebanders
• CMMs, grinders and EDM machines

New vs used CNC machines on finance

Tax and capital allowances for machine tools

GOV.UK lists lathes and planers among the kinds of machine that may qualify for full expensing, which lets a company subject to Corporation Tax deduct 100% of the cost of qualifying new and unused plant and machinery from profits in the year it is bought. Second-hand machines do not qualify for full expensing, but GOV.UK says they can still qualify for the Annual Investment Allowance, which is currently £1 million a year and covers most plant and machinery.

If you buy on hire purchase, GOV.UK explains that you can claim the AIA on the payments under the contract once you start using the machine, though not on the interest. A 40% first-year allowance has applied to new main-rate plant bought from 1 January 2026, and at Budget 2026 the government announced it will increase to 50% for spending from 1 January 2027. The right allowance depends on your structure, year end and whether you buy or lease, so please speak to your accountant before you commit.

Imported, auction and dealer-sourced machines

Many machines come from European dealers, auctions or other engineering firms selling surplus kit. These can usually be funded, but lenders will want a clear invoice, proof the seller owns the machine outright and sometimes an inspection or independent valuation. Payment terms on imported machines can be tight, so talk to us before you agree a deposit with the seller. For older kit, our used equipment finance page explains how lenders approach age and condition.

What lenders typically look at

• Supplier quote or invoice, including any installation, tooling and software
• Machine details for used kit: make, model, year, control type, hours and serial number
• Business bank statements, typically the last three to six months
• Latest filed accounts plus management accounts if your year end was some time ago
• An idea of the work the machine will do, such as new contracts or work you currently subcontract
• Details of existing finance agreements and director information for credit checks