Succeeding in the manufacturing sector requires substantial investments in specialised equipment, facilities, and resources. From advanced machinery and production lines to industrial premises and infrastructure, the costs associated with operating a thriving manufacturing business can quickly escalate.
This is where comprehensive manufacturing finance solutions come in, enabling manufacturers across various industries to access the necessary tools, assets and properties without being burdened by heavy upfront expenditures.
At Clifton Private Finance, we specialise in tailoring flexible financing options that allow you to procure vital manufacturing equipment, undertake ambitious expansion projects, and secure suitable commercial properties – all while preserving your liquidity and cash flow.
Our manufacturing finance solutions encompass asset finance, leasing, business loans, property finance and more – ensuring that every aspect of your manufacturing operation is covered. We'll explain what manufacturing finance entails, how it works, its key benefits, and how to apply.
The Different Finance Options
There are two main equipment finance routes: hire purchase and operating lease.
- Hire Purchase - The business pays a deposit upfront and then makes regular payments over an agreed term, usually 12-60 months. At the end, the business owns the manufacturing equipment outright, allowing claims for capital allowances.
- Operating Lease - The business pays a monthly rental fee to use the equipment for a fixed period, typically 2-5 years. At term end, the assets are returned, the lease is extended, or the equipment is purchased at a reduced price. Leasing provides flexibility without ownership obligations.
Property Finance for Manufacturers
Obtaining suitable commercial premises is critical for manufacturers to operate efficiently and meet production demands. Property finance solutions enable manufacturers to strategically acquire, refinance or develop the vital properties and facilities they require.
Commercial Mortgages - Commercial mortgages provide long-term financing at competitive rates for manufacturers looking to purchase existing industrial properties like factories, warehouses or office buildings. This allows the purchase cost to be spread over an extended period, often 10-25 years. Commercial mortgages can grant ownership of the property while preserving working capital.
Bridging Loans - Bridging loans offer a short-term property finance solution, typically lasting 3-12 months. Manufacturers can use these to cover the transitional period before arranging longer-term lending, like a commercial mortgage. This financing bridge is useful when purchasing properties at auction or during relocation periods.
Development Finance - For ground-up construction of new manufacturing facilities or major renovations of existing premises, development finance is a specialised property loan. It covers 100% of the land/building costs and construction expenditures, with interest rolled up into the total facility amount. Repayment schedules are structured around the project timeline.
Incorporating Property Into Business Loans
When manufacturers require more comprehensive funding beyond just property assets, our business loan solutions can incorporate property finance needs seamlessly.
For example, a manufacturer could secure a larger facility that combines:
- Asset finance for new machinery and equipment
- A commercial mortgage for an industrial unit purchase
- Development finance for renovating/expanding the property
- Additional working capital is needed for inventory, staffing, marketing, etc.
This integrated approach streamlines financing and provides a single affordable payment schedule. Our manufacturing finance experts structure tailored business loan packages optimised for your specific situation - equipment, property and operational funding requirements. By offering diverse property finance options alongside traditional asset funding, we ensure manufacturers can cost-effectively acquire and leverage high-value real estate pivotal to their long-term growth plans.
Business Loans for Manufacturers
Our flexible business loans provide working capital to cover a wide range of costs:
- Increase manufacturing capacity and output
- Purchase additional equipment, machinery or tooling
- Invest in research, product development or technology
- Hiring staff, training or implementing new systems
- Financing marketing campaigns and growth initiatives
- Meeting day-to-day operational expenses
With affordable rates, tailored terms from 6 months to 10+ years, and borrowing from £25,000 to millions, our manufacturing finance experts secure competitive business loans aligned to your specific situation and goals.
How Manufacturing Finance Works
The process of financing manufacturing operations is fairly straightforward for us. The process follows any other type of business loan, asset financing or equipment finance. Here are the key steps involved, and what you can expect:
- Discuss your requirements and budget with our specialist brokers
- Select desired equipment, agree on property details or specify loan needs
- Sign finance agreements, and lenders provide funding to suppliers/vendors
- Receive equipment, move into premises or access working capital
- Make regular, affordable payments to lenders over the agreed terms
- At the end of finance terms, you can choose to own assets outright, refinance, upgrade or extend as needed
Benefits of Manufacturing Finance
Preserve Working Capital
- Avoid tying up cash in major equipment, property and asset purchases
- Spread costs over affordable monthly payments
- Free up capital to invest in growth, operations and opportunities
Stay Competitive and Compliant
- Access the latest manufacturing technologies and machinery
- Meet all industry standards, regulations and certifications
- Regularly upgrade obsolete equipment without delay
Maximise Tax Advantages
- Claim capital allowances on purchased equipment and assets
- Deduct rental payments and interest from taxable income
Enjoy Flexibility and Scalability
- Leverage assets without ownership obligations via leasing
- Easily scale up or down equipment and properties as needed
- Options to return, upgrade, extend or purchase outright
While offering substantial benefits, it's important to weigh the potential drawbacks of manufacturing finance, such as overall costs due to interest, contractual commitments, maintenance responsibilities, and more. At Clifton Private Finance, our experts will ensure you make informed decisions that are aligned with your budget and long-term objectives.
What Can Be Financed?
Our manufacturing finance solutions cover procurement of almost any equipment, assets or properties required, including:
- Advanced machinery, CNC tools and production lines
- Industrial ovens, furnaces, refrigeration and processing equipment
- Packaging, bottling, material handling and finishing equipment
- Warehouses, factories, distribution centres and office buildings
- Forklifts, trucks, commercial vehicles and rolling stock
- Software, computing equipment, monitoring and control systems
From state-of-the-art robotics and automation to sprawling manufacturing campuses, if it's vital for your manufacturing operations, we can finance it competitively and simply.
How We Can Help
Looking for manufacturing finance in the UK? Our expertise can assist with:
- Evaluating if finance is the best option for your situation
- Determining optimal finance types for your equipment and property needs
- Calculating affordable budgets, rates and terms to maintain healthy cash flow
- Seamlessly managing the entire finance application process
We'll leverage our broad panel of specialist manufacturing finance lenders to negotiate aggressive rates and tailored packages aligned to your business's unique requirements.
Don't hesitate to discuss your manufacturing finance requirements with our team today. We're ready to support your growth and future ambitions through smart funding solutions.
