Manufacturing Asset Finance: £220,000 for New CNC Machinery

The Challenge

A well-established precision engineering firm in the Midlands had secured a massive new contract supplying parts to the aerospace sector. However, fulfilling this contract required immediate acquisition of a state-of-the-art, 5-axis CNC machining centre costing £220,000.

Purchasing the machinery outright would have severely depleted their working capital, leaving them vulnerable to any sudden supply chain shocks or payroll delays.

The Solution

The firm approached Funding Source to explore their options. We immediately identified Asset Finance (specifically, a Hire Purchase agreement) as the perfect vehicle.

By using the CNC machine itself as the collateral for the loan, we connected the firm with a specialist manufacturing lender.

• Facility: £220,000 Hire Purchase agreement
• Term: 60 months (5 years)
• Turnaround: Approved in 48 hours in this case, equipment installed in 2 weeks.

Note: This case study is illustrative. Actual turnaround times depend on the lender, your asset, and business documentation.

The Result

The firm acquired the necessary machinery and began fulfilling the aerospace contract ahead of schedule. Crucially, their cash reserves remained entirely intact, ensuring smooth day-to-day operations. The monthly repayments were easily covered by the increased revenue generated by the new contract.