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Induction Furnace Finance

Spread the cost of induction furnaces from £40,000 to £900,000+ with flexible finance options. HP, lease or refinance; compare rates from 40+ lenders.

Can you finance a induction furnace?

Yes, induction furnaces 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 £40,000 to £900,000, 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.

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Typical Cost

£40k – £900k

Approval Speed

24–48 hours

Same-day for < £100k

Rates From

4.5% APR

What would a induction furnace cost per month?

£180,000
10%
60 months
9%
£0

Your estimate

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

Pre-filled with a typical induction furnace price. Indicative only, not a quote.

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Finance options

Hire Purchase (HP)

Rate
From 4.9% APR
Term
12–84 months
Deposit
10–20%
Ownership
Yours at the end
Best for
Foundries wanting to own their melting capacity 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
Off balance sheet, always current with the latest model.

Representative example

On a purchase price of £180,000: a 10% deposit of £18,000, then 48 monthly payments of £3,797 at 5.9% APR representative (fixed). Total amount payable £200,256, 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
Coreless induction melting furnace, 400–600kg capacity £40,000 – £150,000 Small Coreless Induction Furnace (specification class)
Coreless induction melting furnace, 1–3 tonne capacity £150,000 – £500,000 Medium Coreless Induction Furnace (specification class)
Coreless induction melting furnace, 3–6 tonne capacity with holding £500,000 – £900,000 Large Coreless Induction Furnace (specification class)

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Tax benefits

Induction furnaces qualify for Annual Investment Allowance (AIA), meaning you can deduct the full cost from taxable profits in the year of purchase, up to £1,000,000 for qualifying plant and machinery. HP agreements let you claim capital allowances on the asset as it sits on your balance sheet; lease payments are generally deducted as an operating expense over the term.

Market context

Induction furnaces are bought by iron, steel and non-ferrous foundries as the primary melting unit, whether replacing an older furnace, adding capacity, or switching from a cupola or gas-fired furnace to induction melting for tighter process control. Furnaces and heat treatment plant are heavy, need a significant electrical supply, and often require planning or environmental permitting for emissions before the site can operate the equipment. Installation and commissioning, including the electrical infeed, foundations and any flue or abatement work, is frequently a large share of the total project cost, and is not always financeable on the same agreement as the equipment itself. Buyers finance the furnace itself, and often work with their lender and the equipment supplier separately on how installation and any electrical infrastructure upgrade is funded, since the two projects don't always sit on the same agreement. Replacement is typically driven by needing more melting capacity or better power efficiency, rather than the coil or power supply failing outright, since refractory lining is the main routine wear item and is relined rather than being a reason to replace the furnace. A functioning used and refurbished market exists for induction furnace power supplies and coils, supporting refinancing of an existing unit.

Bad credit?

Several of our 200+ lenders specialise in businesses with imperfect credit histories. You may need a larger deposit or personal guarantee, but options exist. Checking your options here does not affect your credit score, because we do not run a credit search to match you. A lender will run their own checks only if you decide to apply.

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Frequently asked questions

Does finance cover installation and the electrical supply upgrade?
Sometimes, but not always on the same agreement as the furnace. Because induction furnaces need a substantial electrical infeed and the installation, foundations and any cooling water infrastructure are often a large share of total project cost, some lenders will only finance the furnace and its power supply, leaving the electrical infrastructure and any permitting costs to be funded separately. It's worth clarifying this with your lender and supplier before you commit to a project budget.
Can I finance a used induction furnace?
Yes, and a functioning used and refurbished market exists for induction melting furnaces and their power supplies. Lenders will want to know the coil condition and the age and manufacturer of the power supply unit, since these are the components most likely to need attention on an older furnace, alongside a refractory relining schedule. It's worth having photos, the serial number and any service or maintenance records ready when you apply, since this is exactly the evidence a lender looks for to support a used equipment application and can speed up the decision.
What permits do I need before installing an induction furnace?
Melting operations typically require environmental permitting to cover emissions and noise, and the site may need planning permission depending on the scale of the installation and its location. Permitting is a site-specific process that should be started early and run in parallel with equipment procurement, since it can take longer than sourcing and financing the furnace itself, and a lender will usually want to see that this is in hand before drawing down funds.
How is a large induction furnace deal structured for finance?
Larger induction furnace purchases, which frequently run into hundreds of thousands of pounds, typically take longer to approve than a smaller deal, often 5-7 working days or more, while the lender reviews accounts, may commission a valuation, and structures drawdown against the supplier's delivery and commissioning milestones rather than a single payment on order. Having your latest accounts, bank statements and a signed supplier quote ready before you apply is the single biggest factor in reaching a decision at the faster end of that timescale.
Does an induction furnace qualify for the same tax treatment as other plant and machinery?
Yes, induction furnaces qualify for Annual Investment Allowance in the same way as other qualifying plant and machinery, letting you deduct the cost from taxable profits in the year of purchase up to the AIA limit. Because furnace deals are often large, it's worth discussing the timing of the purchase with your accountant relative to your accounting period and the AIA limit.

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