Lendus.

Tunnelling Equipment Finance

Finance for micro-tunnelling and pipejacking systems from £150,000 to £3,000,000+. Because so few machines change hands in the UK, lenders weigh the contract behind the purchase as heavily as the machine itself.

Can you finance a tunnelling equipment?

Yes, tunnelling equipments 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 £150,000 to £3,000,000, and most deals are written over 24-60 months with a deposit of around 20-30%. Decisions typically take several weeks. Used machines are financeable too, usually with a shorter term.

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Typical Cost

£150k – £3000k

Approval Speed

Several weeks

Timescale depends on contract evidence available

Rates From

7.5% APR

What would a tunnelling equipment cost per month?

£800,000
10%
60 months
9%
£0

Your estimate

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

Pre-filled with a typical tunnelling equipment price. Indicative only, not a quote.

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Finance options

Hire Purchase (HP)

Rate
From 7.5% APR
Term
24-60 months
Deposit
20-30%
Ownership
Yours at the end
Best for
Established contractors with a strong balance sheet and trading history

Contract-Backed Asset Finance

Rate
Rate set against the underlying contract
Term
Matched to contract duration
Deposit
Negotiated per deal
Ownership
Yours at the end, or aligned to contract completion
Best for
Machines bought against a specific, already-won tunnelling contract

Asset Refinance

Rate
From 8.0% APR
Term
24-48 months
Deposit
None required
Ownership
Release capital tied up in an owned machine
Best for
Contractors wanting to release capital from an existing machine between contracts

Representative example

On a purchase price of £800,000: a 10% deposit of £80,000, then 48 monthly payments of £16,876 at 5.9% APR representative (fixed). Total amount payable £890,048, 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
Small-Diameter Pipejacking Rig £150,000 - £500,000 (specification class, price not independently verified) Small-Diameter Pipejacking System
Mid-Size Micro-Tunnel Boring System £500,000 - £1,500,000 (specification class, price not independently verified) Mid-Size Micro-Tunnel Boring System
Herrenknecht AVN Micro-Tunnelling System Price on application; built to project-specific bore diameter and ground conditions Micro-Tunnelling System
Large Micro-Tunnelling Unit, Major Infrastructure Scale £1,500,000 - £3,000,000+ (specification class, price not independently verified) Large-Scale Micro-Tunnelling Unit

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Tax benefits

Tunnelling and micro-tunnelling machines are plant and machinery and qualify for capital allowances in principle in the same way as any other piece of construction equipment. In practice, because full-size tunnel boring machines used on major UK infrastructure projects run into many millions of pounds and are usually procured directly by the tier-one contractor for that specific project rather than financed through the general SME asset finance market, most finance activity in this category concerns smaller micro-tunnelling and pipejacking systems rather than the very largest machines. Given the values and the small number of UK lenders active in this space, it is worth getting specific tax advice on your machine and how it is being procured rather than assuming a general treatment applies.

Market context

Tunnelling and micro-tunnelling equipment is bought by specialist utility, ground engineering and infrastructure contractors, often bidding for work connected to major programmes such as HS2 or water and utility network upgrades. Because relatively few tunnelling and micro-tunnelling machines change hands in the UK each year compared with a common asset like an excavator, a lender underwriting this equipment leans much more heavily on the strength of the contract backing the purchase than on any assumption about how easily the machine could be resold if things went wrong. This is effectively the reverse of how a lender assesses a more common machine, where resale value carries much of the underwriting weight. Machines are frequently matched to a specific bore diameter and ground condition for one contract, then sold on for a different project with different requirements, rather than being kept for years against a standard depreciation schedule.

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

Why is tunnelling equipment finance different to financing an excavator?
An excavator is a common machine with a large, liquid UK and export used market, so a lender can be reasonably confident of recovering value by reselling it if a deal goes wrong. A tunnelling or micro-tunnelling machine is the opposite: very high value, built or configured for a specific bore diameter and ground condition, and traded between a small number of specialist contractors. Because resale is much less certain, lenders active in this space put far more weight on the strength and status of the underlying works contract the machine is being bought against than they would for a common asset.
Do I need a signed contract before I can get tunnelling equipment finance?
Most lenders active in this specialist category will want to see clear evidence of the contract or programme of work the machine is being bought for, and in many cases a signed contract or a very advanced position on one, before proceeding, given how directly the resale risk on this equipment is tied to contract-backed lending rather than machine-based lending. This is different to more common equipment finance, where an established trading history alone is often sufficient. A specialist broker who covers this category can advise what a specific lender will expect to see at the point you apply.
Can I finance a used micro-tunnelling machine?
Yes, though the used market for this equipment is considerably smaller than for mainstream construction plant, and because each machine is often configured for a specific bore diameter, a used machine may need reconfiguration for a new contract's requirements. Lenders will generally still expect a similar level of contract evidence to a new machine purchase, since the underwriting logic is driven by the contract rather than by whether the machine is new or used.
What deposit is typical for tunnelling equipment finance?
Deposits are generally higher than for mainstream construction equipment, often in the region of 20 to 30% for hire purchase, reflecting both the value involved and the smaller, more specialist used market this equipment sits in. Where finance is arranged against a specific contract, the deposit and structure are often negotiated individually based on the contract terms and payment schedule rather than following a standard percentage.
How long does tunnelling equipment finance take to arrange?
Given the value and specialist nature of this equipment, timescales are longer than for standard construction plant, typically several weeks rather than days, since the lender needs to review both the machine specification and the contract or project it is being bought against in detail. Starting the finance conversation as early as possible in your bid or contract award process is worthwhile given these longer timescales.

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