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Foundry and heat treatment equipment finance

Finance furnaces and induction heating equipment for foundries and heat treatment specialists. Compare lenders through Lendus and apply for finance online.

10 equipment finance pages in this category, covering purchases from £3k to £900k.

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How do foundries finance furnaces and heat treatment equipment?

Foundries, forges and heat treatment specialists most often use hire purchase to finance furnaces and induction equipment, because these are long-life, energy-intensive assets a business intends to own and run for fifteen years or more rather than upgrade on a technology cycle. Because the resale market for a used furnace is thin and specialist, lenders weigh the business's supply contracts and trading record more heavily than they would for equipment with broader resale demand.

Buyers are metal casting foundries, forges and heat treatment specialists supplying manufacturing, automotive and aerospace supply chains. Capacity is typically added in large steps rather than incrementally, since a business generally installs a whole new furnace or induction line to meet a specific increase in demand rather than upgrading part of an existing one, which makes each equipment purchase a significant single event relative to the business's normal cash flow.

Hire purchase is the natural fit for furnaces and induction heating equipment, because these machines are built to run for fifteen years or more and a foundry or heat treatment business genuinely intends to keep using the same equipment for the bulk of that life. Leasing rarely suits this category well, since the technology involved does not date the way IT hardware or diagnostic equipment does, so there is little benefit to a shorter refresh cycle that leasing would otherwise provide.

The secondary market for furnaces and induction equipment is thin and specialist, with relatively few buyers outside the trade for a used unit, which means lenders financing this equipment lean more heavily on the business's supply contracts and trading record than on the resale value of the furnace itself. This is a meaningful difference from more liquid categories like vehicles or construction plant. Long-standing supply relationships with well-known customers carry real weight in that assessment.

The mistake we see most often is assuming a furnace is as straightforward to finance as more common industrial equipment, when in practice this is a genuinely specialist asset class, and a lender experienced in foundry and heat treatment finance, rather than a general equipment finance panel, is usually better placed to structure the deal appropriately and price it fairly. Asking a broker with existing foundry sector experience, rather than approaching a generalist panel directly, usually produces a better outcome.

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Every foundry & heat treatment page we have

Each page carries the price range we see quoted in the UK, the finance options that suit that specific item, and the questions buyers ask before signing.

Equipment Typical price range Decision time Page
Annealing Oven £12k to £250k 24–48 hours Annealing Oven finance
Core Making Machine £25k to £300k 24–48 hours Core Making Machine finance
Crucible Furnace £8k to £150k 24–48 hours Crucible Furnace finance
Die Casting Machine £50k to £800k 24–48 hours Die Casting Machine finance
Heat Treatment Furnace £15k to £400k 24–48 hours Heat Treatment Furnace finance
Induction Furnace £40k to £900k 24–48 hours Induction Furnace finance
Ladle £3k to £80k 24–48 hours Ladle finance
Quench Tank £8k to £120k 24–48 hours Quench Tank finance
Sand Mixer £10k to £120k 24–48 hours Sand Mixer finance
Shot Blast Machine £20k to £250k 24–48 hours Shot Blast Machine finance

People also ask

Can a used furnace be financed?
Yes, though the secondary market is thin and specialist compared with more common industrial equipment, so a lender is likely to ask for a detailed condition report or independent valuation before financing a used furnace or induction system. Rates on used specialist equipment like this tend to run higher than on more liquid asset classes.
Why is furnace finance harder to arrange than for general machinery?
Furnaces and induction equipment have few buyers outside the foundry and heat treatment trade if a lender needed to resell a repossessed asset, so lenders rely much more heavily on the strength of the business's contracts and trading history than on the equipment itself as security. A specialist lender familiar with the sector is usually better equipped to assess this fairly than a generalist one.
Is leasing an option for foundry equipment?
It is possible but uncommon, because furnaces and induction heating equipment do not date the way technology-driven equipment does, so there is little advantage to a shorter lease term over hire purchase. Most foundries intend to run the same furnace for well over a decade, which points naturally towards ownership rather than a rolling lease.
What do lenders look at for foundry equipment finance?
Beyond the equipment itself, lenders will look closely at the business's existing supply contracts, its trading history and its energy costs, since furnaces are energy-intensive and running costs are a meaningful part of the business case. A foundry with long-term supply agreements in place is generally in a stronger position than one relying on spot work.

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