Lendus.

Manufacturing Business Loans

Finance machinery, raw materials, factory space, and growth for your manufacturing business. Lendus compares 200+ lenders to find the most competitive manufacturing finance in the UK.

200+ UK lenders
2-minute application
No credit check to apply
FCA-regulated brokers

Typical Range

£25k – £5m

Average Loan

£300k

for manufacturing

Decision Speed

24–48 hrs

for unsecured loans

Eligibility requirements

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Loan types available

Unsecured Business Loan

Rate
6.9% – 22.9% APR
Term
1 – 5 years
Security
No security required
Best for
Raw material purchases, working capital, R&D investment, and smaller equipment

Secured Business Loan

Rate
4.5% – 12.9% APR
Term
1 – 20 years
Security
Factory premises, commercial property, or significant plant and machinery
Best for
Factory acquisition or expansion, major production line investments, and large-scale upgrades

Asset Finance

Rate
4.9% – 11.9% APR
Term
2 – 7 years
Security
The machinery or equipment being financed
Best for
CNC machines, production lines, industrial robots, packaging equipment, and factory vehicles

Representative example

Borrow £300,000 over 36 months at 9.9% APR (fixed). Monthly repayment: ~£9,666. Rates depend on your circumstances and the type of loan.

Market context

UK manufacturing contributes approximately £205 billion annually to the economy, representing around 10% of total GDP. The sector employs approximately 2.6 million people across 130,000 manufacturing businesses, with SMEs making up over 99% of the total.

Common challenges

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Bad credit?

Several of our 200+ lenders work with manufacturing businesses that have imperfect credit. You may need a personal guarantee or higher rate, but options exist. Our eligibility check uses a soft search — no impact on your credit score.

Frequently asked questions

What is the best way to finance new manufacturing machinery?
Asset finance is the most cost-effective and popular option for manufacturing machinery. Whether you need a CNC lathe (£20,000-£250,000), an injection moulding machine (£30,000-£500,000), or a complete production line (£100,000+), asset finance spreads the cost over 2-7 years with the equipment as security. This preserves your working capital for raw materials and wages. Hire purchase gives you ownership at the end, while operating leases may suit rapidly evolving technology where you want to upgrade regularly.
Can I get finance for a factory expansion or new premises?
Yes. A commercial mortgage is the most common route for purchasing factory premises, typically offering 60-75% loan-to-value over 15-25 years. For leasehold expansion (fitting out a new unit), a secured or unsecured business loan can cover the costs. If you are building a new factory, development finance can fund the construction with a commercial mortgage arranged to replace it upon completion. Lendus can compare options across all of these product types.
How can I manage cash flow between buying materials and getting paid by customers?
Invoice finance is widely used by manufacturers to bridge the gap between production costs and customer payment. It lets you release up to 90% of your outstanding invoice values within 24 hours. Trade finance is another option if you import raw materials, as it pays your supplier directly and gives you extended terms to repay once your finished goods are sold. A revolving credit facility provides an ongoing cash buffer that you draw from as needed.
Is R&D finance available for developing new products or processes?
Yes, several options exist. Innovation loans from the British Business Bank (up to £2 million), R&D tax credits (which can be assigned to lenders as security), and standard business loans can all fund research and development. Some manufacturers also use Innovate UK grants alongside commercial finance. Lendus can help you access commercial lending while you explore grant and tax credit options in parallel. Lenders view R&D investment positively when it has clear commercial application.

Related industry loans

Construction Haulage & Logistics Farming & Agriculture Garage & Motor Trade Property Development

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