Asset finance guide
Asset finance for engineering firms
Engineering businesses often need expensive equipment before the extra revenue has arrived. Asset finance may help spread the cost of machinery, tooling and production assets.
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Assets commonly reviewed
Engineering firms may look at finance for CNC machines, fabrication equipment, compressors, tooling, vehicles, lifting equipment, inspection equipment or technology used in production.
Lenders may review the asset type, supplier, cost, deposit, VAT position, age, condition, resale value and how the asset supports trading.
Business evidence
Useful business details include recent accounts, bank statements, management figures, order book, customer contracts and an explanation of how the asset will be used.
If the asset is specialist, imported or used, extra detail can help the lender understand value and risk.
When asset finance may not be enough
If the business also needs working capital for materials, payroll or tax, a business loan or invoice finance route can be reviewed at the same time so the asset purchase does not drain cash.
How Jolt makes the next step easier
You do not need to know the perfect lender before making an enquiry. Jolt looks at the purpose, timing and evidence, then helps aim the case at a realistic funding route.
Start with the amount, what the money is for and how quickly it is needed. If the route is not obvious, Jolt can still review the enquiry and explain the clearest next step.
Asset finance for engineering firms FAQs
Can used engineering equipment be financed?
It may be possible, but lender appetite depends on age, condition, supplier, valuation and resale market. The asset type, age, supplier, value, deposit, resale market and how it supports trading can all influence the finance route.
Is a deposit needed?
A deposit may be needed depending on the asset, lender, business profile and deal structure. The level of deposit, retained cash in the business and the strength of the overall case can all affect lender appetite.
Can VAT be included?
VAT treatment depends on the facility and business position. Some businesses need to plan for VAT cash flow separately.
What helps the application?
A clear quote, asset details, supplier information, accounts, bank statements and expected business benefit can help. It also helps to explain the amount needed, what the funding will do, how quickly it is needed and how repayments or the exit route are expected to work.