Can you finance a cnc machine?

Yes, cnc machines are financed as a standard asset purchase, usually on hire purchase or a lease, with the machine itself acting as the security. UK prices typically run £15,000 to £500,000, and most deals are written over 12–84 months with a deposit of around 10–20%. Decisions typically take 24–48 hours. Used machines are financeable too, usually with a shorter term.

CNC Machine Finance: Rates, Options & Eligibility

Q: Can I finance a used CNC machine?

Yes, most lenders finance used CNC machines up to around 10 years old, and you will usually need an independent valuation for anything over 5 years old given how much value depends on spindle hours and control system condition. Rates for used equipment tend to sit a little above new-machine rates to reflect the shorter remaining working life and less predictable resale value. A machine from one of the major builders with a documented service history and low spindle hours will generally get better terms than an unknown-history example of similar age.

Q: What deposit do I need for CNC machine finance?

For hire purchase, most lenders ask for a 10-20% deposit, while finance leases and operating leases can often be arranged with no deposit at all. A larger deposit reduces the monthly payment and can help secure a better rate, which matters more on a higher-value multi-axis machine than on an entry-level mill or lathe. Because a CNC machine can represent a large share of a small machine shop's turnover, many buyers weigh the deposit size against keeping working capital free for materials, tooling and wages between jobs.

Q: How quickly can I get CNC machine finance?

Most applications are approved within 24-48 hours, and same-day approval is common for deals under £100,000, which covers most single-machine purchases. Larger or more complex deals, particularly multi-axis machines bought alongside tooling, fixtures and a CAM software licence, typically take five to seven working days as the lender reviews the fuller specification. Having a clear, itemised supplier quote ready before applying is the most reliable way to keep a straightforward application moving to a fast decision.

Q: Do I need to have been trading for a minimum period to finance a CNC machine?

Most lenders require at least two years of trading history for standard terms. A start-up machine shop under that threshold can still access finance but is more likely to be asked for a personal guarantee, a higher deposit, or evidence such as confirmed subcontract work to support the application. Because a strong, established used market exists for CNC equipment, lenders are generally comfortable financing even a newer business provided the machine itself holds good resale value as security behind the agreement.

Q: What happens at the end of a CNC machine finance agreement?

Hire purchase transfers full ownership of the machine once the agreement is paid off, which suits most machine shops since well-maintained CNC equipment runs reliably for decades. A finance lease usually offers a balloon payment to take ownership, continued rental, or handover to the funder, while an operating lease is return-only, better suited to a business wanting to always run the newest control system and cycle times rather than keep the same machine long-term. Which fits best usually depends on whether a customer requirement is likely to outgrow the machine before it wears out.

Q: Can delivery, installation and commissioning be included in CNC machine finance?

Yes, provided they appear on the supplier's invoice alongside the machine itself, most lenders fund rigging, installation, levelling and commissioning as part of the same agreement rather than requiring it to be paid separately. This matters for a CNC machine given the weight and precision levelling involved in getting it running correctly. Keeping installation on the same itemised quote as the machine, rather than a separate engineer's invoice, is the simplest way to have it included in the finance amount from the outset.

Typical Cost

£15k – £500k

Approval Speed

24–48 hours

Same-day for < £100k

Rates From

4.5% APR

What would a cnc machine cost per month?

CNC Machine price (ex VAT) £85,000

Deposit 10%

Agreement term 60 months

Annual interest rate 9%

Balloon payment £0

Your estimate

Indicative only. Not a quote and not an offer of finance.

Pre-filled with a typical cnc machine price. Indicative only, not a quote.

Finance options

Hire Purchase (HP)

Rate: From 4.9% APR
Term: 12–84 months
Deposit: 10–20%
Ownership: Yours at the end
Best for: Businesses wanting to own the equipment outright

Finance Lease

Rate: From 4.5% APR
Term: 12–84 months
Deposit: None required
Ownership: Return or buy (balloon payment)
Best for: Tax-efficient, claim 100% of payments against profit

Operating Lease

Rate: From 5.2% APR
Term: 24–60 months
Deposit: None required
Ownership: Return at end
Best for: Always have newest technology. Off balance sheet.

Representative example

On a purchase price of £85,000: a 10% deposit of £8,500, then 48 monthly payments of £1,793 at 5.9% APR representative (fixed). Total amount payable £94,564, including the deposit. The rate you are offered depends on your business and the asset.

What buyers actually specify

Guide prices for sizing a finance agreement, not quotes. Manufacturers in this market mostly price on application, so where a current UK list price could not be confirmed the row describes a specification class rather than naming a model. Your supplier quote is what the agreement is written against.

Machine or specification	Guide price	Type
Haas VF-2SS	£65,000 – £85,000	Vertical Milling
DMG Mori CMX 600 V	£90,000 – £140,000	5-Axis CNC
Mazak QT-250	£45,000 – £70,000	CNC Lathe
Trumpf TruLaser 1030	£120,000 – £250,000	Laser Cutting

Tax benefits

CNC machines qualify for Annual Investment Allowance (AIA), meaning you can deduct the full cost from taxable profits in year one, up to £1,000,000. For HP agreements, you claim capital allowances on the asset. For leases, you typically deduct the full lease payment from profits.

Market context

CNC machines are bought by subcontract machine shops, toolmakers and manufacturers bringing a process in-house that was previously outsourced. Because a single machine can represent a significant share of a small engineering firm's turnover, most buyers finance rather than deplete working capital needed for materials, wages and tooling between jobs. Replacement is typically driven by a customer requiring tighter tolerances, more axes or faster cycle times than the existing machine can deliver, rather than the machine failing; well-maintained CNC equipment runs for decades. A strong, established used market for machines from the major builders supports asset-backed finance and keeps refinancing an existing machine realistic.

Bad credit?

Some specialist lenders consider businesses with imperfect credit histories. You may need a larger deposit or personal guarantee, but options may be available. Fundably may use a soft credit check for matching, which does not affect your credit score. A hard check may happen if you choose to proceed with a lender.

Frequently asked questions

Can I finance a used CNC machine?

Yes, most lenders finance used CNC machines up to around 10 years old, and you will usually need an independent valuation for anything over 5 years old given how much value depends on spindle hours and control system condition. Rates for used equipment tend to sit a little above new-machine rates to reflect the shorter remaining working life and less predictable resale value. A machine from one of the major builders with a documented service history and low spindle hours will generally get better terms than an unknown-history example of similar age.

What deposit do I need for CNC machine finance?

For hire purchase, most lenders ask for a 10-20% deposit, while finance leases and operating leases can often be arranged with no deposit at all. A larger deposit reduces the monthly payment and can help secure a better rate, which matters more on a higher-value multi-axis machine than on an entry-level mill or lathe. Because a CNC machine can represent a large share of a small machine shop's turnover, many buyers weigh the deposit size against keeping working capital free for materials, tooling and wages between jobs.

How quickly can I get CNC machine finance?

Most applications are approved within 24-48 hours, and same-day approval is common for deals under £100,000, which covers most single-machine purchases. Larger or more complex deals, particularly multi-axis machines bought alongside tooling, fixtures and a CAM software licence, typically take five to seven working days as the lender reviews the fuller specification. Having a clear, itemised supplier quote ready before applying is the most reliable way to keep a straightforward application moving to a fast decision.

Do I need to have been trading for a minimum period to finance a CNC machine?

Most lenders require at least two years of trading history for standard terms. A start-up machine shop under that threshold can still access finance but is more likely to be asked for a personal guarantee, a higher deposit, or evidence such as confirmed subcontract work to support the application. Because a strong, established used market exists for CNC equipment, lenders are generally comfortable financing even a newer business provided the machine itself holds good resale value as security behind the agreement.

What happens at the end of a CNC machine finance agreement?

Hire purchase transfers full ownership of the machine once the agreement is paid off, which suits most machine shops since well-maintained CNC equipment runs reliably for decades. A finance lease usually offers a balloon payment to take ownership, continued rental, or handover to the funder, while an operating lease is return-only, better suited to a business wanting to always run the newest control system and cycle times rather than keep the same machine long-term. Which fits best usually depends on whether a customer requirement is likely to outgrow the machine before it wears out.

Can delivery, installation and commissioning be included in CNC machine finance?

Yes, provided they appear on the supplier's invoice alongside the machine itself, most lenders fund rigging, installation, levelling and commissioning as part of the same agreement rather than requiring it to be paid separately. This matters for a CNC machine given the weight and precision levelling involved in getting it running correctly. Keeping installation on the same itemised quote as the machine, rather than a separate engineer's invoice, is the simplest way to have it included in the finance amount from the outset.

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For UK limited companies with at least 3 months’ trading and monthly revenue.

CNC Machine Finance