Am I eligible for manufacturing finance as a UK limited company or LLP?

Q: Do LLPs qualify in the same way as limited companies?

Yes. LLPs are commonly supported, with similar criteria on trading history, affordability, and KYC. Some providers may request member guarantees or specific documentation on the partnership structure. Eligibility ultimately depends on financial strength and the chosen product.

Q: Is a personal guarantee always required?

Not always. It depends on product, risk profile, and security. Asset finance may rely heavily on the asset, while working capital loans often seek a guarantee. Invoice financiers focus on debtor quality and controls but may still request guarantees.

Q: How fast could I receive funds?

Simple top-up facilities can be approved in 24–72 hours from a complete pack. Asset finance typically completes in 3–10 working days once valuations and supplier documents are ready. Complex structures or multi-asset deals take longer.

The quick answer and what “manufacturing finance” covers

Yes — most established UK limited companies and LLPs in manufacturing are eligible for some form of commercial finance, provided you meet basic criteria like active UK registration, trading history, and affordability. The right option depends on your turnover, cash flow, asset base, customer payment terms, and the purpose of funding. If you can evidence viable operations and repayment capacity, lenders and brokers are actively supporting the sector.

Manufacturing finance is an umbrella term for funding used by production, engineering, and fabrication businesses. It includes asset and equipment finance, invoice finance, working capital loans, vehicle and fleet funding, and refinance of existing assets. It can also include government-backed options such as the Growth Guarantee Scheme via accredited lenders, subject to eligibility.

As a guiding principle, limited companies and LLPs with 6–12 months of trading, verifiable accounts or bank statements, and a clear use of funds will usually find at least one viable route. If your profile is stronger — for example, stable profitability and quality purchase orders — your options and pricing typically improve.

Who typically qualifies?

Companies registered with Companies House or LLPs with designated members and a UK business bank account. Firms with recurring revenue or purchase orders in sectors such as precision engineering, food production, packaging, plastics, metals, fabrication, and electronics. Businesses that can provide management accounts, up-to-date bank statements, and a clear funding purpose, such as machinery purchase or cash flow smoothing.

Common exceptions to be aware of

Pre‑revenue entities or very early-stage start-ups without trading history.
Businesses without UK operations or a UK bank account.
Firms with unresolved and material HMRC arrears and no agreed Time To Pay plan.

Important compliance note

Best Business Loans is an independent introducer and does not lend directly or offer financial advice. Any finance is subject to status, eligibility checks, underwriting, and provider terms. Rates, fees, and terms vary by lender and product, and may change.

Core lender criteria for UK manufacturers

Company status and trading history

Most providers prefer a UK limited company or LLP actively trading for 6–24 months, with some flexibility for asset-backed cases. You’ll normally need a UK business bank account and a registered office, with SIC codes that align to manufacturing or engineering activities. For growth or larger facilities, lenders may prefer 2 years’ filed accounts or strong management accounts.

Financial strength and affordability

Lenders assess historic and forecast cash flow to confirm repayments are comfortably covered. They may look at EBITDA margins, debt service coverage ratio, and order book visibility. Strong purchase orders, framework agreements, or repeat contracts can support affordability even if profitability is still maturing.

Directors, members, and credit behaviour

Most lenders perform credit checks on the company and its directors or designated LLP members. A track record of timely payments, low bounced items, and no recent unsatisfied CCJs improves access and pricing. Adverse credit does not always mean no — some products are tolerant if security or ledger quality offsets risk.

Security, assets, and guarantees

Asset-rich manufacturers often qualify for asset finance or refinance secured against machinery, vehicles, or equipment. General working capital lenders may seek a debenture, personal guarantees, or a mix of both. LLPs may be asked for member guarantees, depending on structure and facility size.

HMRC position and compliance

Lenders usually expect VAT and PAYE to be up to date or under an agreed HMRC Time To Pay arrangement. Clear compliance records, appropriate insurances, and robust safety policies can strengthen credibility. For invoice finance, providers will expect evidence of compliant invoicing, buyer acceptances, and robust credit control.

Typical documentation you’ll be asked for

Last 3–6 months of business bank statements and aged debtor/creditor lists.
Latest filed accounts and recent management accounts with commentary.
VAT returns or key tax confirmations, plus ID and address verification for KYC/AML.

Product-specific eligibility for manufacturers

Asset and equipment finance (hire purchase and finance lease)

Suitable for new or used CNCs, lathes, presses, conveyors, robotics, packaging lines, and energy‑efficient upgrades. Facilities can cover the full invoice or be structured with deposits and residuals to fit cash flow. Ownership, usage, and lifecycle value of the asset are key factors in approvals and pricing.

Typical eligibility signals

6–12 months trading for smaller tickets; longer may be preferred for higher-value assets.
Demonstrable ability to meet repayments from operating cash flow or cost savings.
Asset identity, valuation, supplier details, and insurance in place or to be arranged.

Invoice finance (factoring and invoice discounting)

Best for B2B manufacturers with credit terms of 30–90 days and reliable buyers. Funding is secured on your receivables, with typical advances of 70–90% of invoice value. Quality of debtors, concentration risk, and dilution rates are core underwriting factors.

Works best when

Your customers are UK or OECD-based businesses with stable payment behaviour.
You can provide clean audit trails: POs, delivery notes, and signed proofs where relevant.
Your debtor book is diversified and disputes/write-offs are low.

Working capital loans and commercial term loans

Unsecured or partially secured loans can support tooling, staffing, R&D, or bridging cash flow. Lenders assess turnover trends, margins, bank conduct, and the rationale for funds. Larger loans may require security, personal guarantees, or covenants.

Potential eligibility indicators

£250k+ annual turnover for many unsecured lenders; thresholds vary by provider.
Clean bank statements with headroom and no persistent excesses.
Clear, time-bound plan showing how the funds improve operations or revenue.

Growth Guarantee Scheme (via accredited lenders)

Some lenders offer government-backed loans to eligible UK businesses. Your company remains liable for the debt; the scheme provides lender support, not borrower guarantees. Eligibility depends on lender accreditation and specific criteria, which can include turnover limits and viable business assessments.

Vehicle and fleet finance

Suitable for vans, HGVs, and specialist commercial vehicles used in production or logistics.
Approval leans on asset value, business use, and ability to service payments.
Insurance and maintenance plans can be required; mileage and usage caps may apply.

How to strengthen your eligibility and prepare

Practical steps to improve your profile

Update management accounts and add commentary on margins, pipeline, and costs.
Prepare 12–24 month cash flow forecasts showing affordability and downside cases.
Reconcile debtors and creditors; address overdue items and tighten credit control.
Agree HMRC Time To Pay if needed and keep to the plan with evidence of payments.
Gather POs, framework agreements, and contracts to evidence future revenue.
List assets with make, model, year, and estimated values for security or refinance.

What documents lenders and brokers commonly request

Expect to provide ID and address for directors or designated members and company structure details. Bank statements, VAT returns, management accounts, and filed accounts are standard. For assets, include supplier quotes or pro-forma invoices, and for invoice finance, include ledgers and sample invoices.

How long does it take and what might it cost?

Indicative eligibility for simple working capital loans can be issued within 24–72 hours once documents are complete. Asset finance can move from quote to payout in 3–10 working days depending on valuations, supplier coordination, and documentation. Invoice finance onboarding can take 1–2 weeks including audits, with drawdown shortly after go‑live.

Costs and fees to budget for

Asset finance: fixed or variable rates; arrangement fees and option-to-purchase fees may apply.
Working capital loans: interest and arrangement fees; early settlement terms vary.
Invoice finance: service fee plus discount rate on funds advanced; audit fees may apply.

All pricing is subject to provider assessment and can vary by risk, security, and term. No rate is guaranteed until a lender issues formal terms, and you should review all fees before committing.

How Best Business Loans helps, FAQs, and next steps

BestBusinessLoans.ai helps UK manufacturing companies and LLPs explore funding options quickly. Our AI-driven process matches your profile to relevant lenders and brokers for your sector and purpose. We do not lend directly, and there’s no obligation to proceed after receiving options.

If you want a deeper dive into sector-specific routes, see our guide to manufacturing business loans. Use it to compare funding paths like machinery finance, invoice solutions, and working capital. Then complete a quick enquiry to check indicative eligibility.

Submitting your details is fast and secure, and we only share your information with relevant finance professionals. You stay in control and can compare terms, structures, and repayment profiles. The goal is to help you find practical, credible funding partners without contacting dozens of firms.

FAQs: eligibility for manufacturing finance

Do LLPs qualify in the same way as limited companies?

Yes — LLPs are commonly supported, with similar criteria on trading history, affordability, and KYC. Some providers may request member guarantees or specific documentation on the partnership structure. Eligibility ultimately depends on financial strength and the chosen product.

Can I get finance with recent losses?

Potentially, especially if losses are explained and you can show a realistic path to profitability. Asset‑backed facilities and invoice finance may be more accessible than unsecured term loans. Strong orders, cost savings, or new contracts can help.

What if I have HMRC arrears?

You may still be eligible if you have an agreed and maintained Time To Pay plan. Lenders will check evidence of payments and may size facilities conservatively. Unmanaged arrears make approvals harder until resolved.

Is a personal guarantee always required?

Not always — it depends on product, risk profile, and security. Asset finance may rely heavily on the asset, while working capital loans often seek a guarantee. Invoice financiers focus on debtor quality and controls but may still request guarantees.

How fast could I receive funds?

Simple top‑up facilities can be approved in 24–72 hours from a complete pack. Asset finance typically completes in 3–10 working days once valuations and supplier docs are ready. Complex structures or multi‑asset deals take longer.

Key takeaways

Most UK limited companies and LLPs in manufacturing can qualify for some form of finance.
Trading history, cash flow, and a clear funding purpose are the biggest drivers of eligibility.
Asset finance and invoice finance are often the most accessible routes for manufacturers.
Clean bank conduct, reconciled ledgers, and updated management accounts strengthen cases.
Use our AI matching to get connected with relevant lenders and brokers quickly.

Get your free eligibility check

Answer a few questions and get connected with suitable providers for a Quick Quote or indicative eligibility. There’s no obligation and your enquiry is handled confidentially. Start now at BestBusinessLoans.ai.

Fair, clear, and not misleading

Information on this page is for general guidance only and is not financial advice. Finance is subject to status, eligibility checks, and provider terms; additional documentation may be required. Always read full terms, fees, and risks before proceeding, and seek professional advice if needed.

Updated: October 2025. Best Business Loans operates as an independent introducer, helping UK businesses connect with suitable finance providers. We comply with UK advertising standards and aim for communications to be fair, clear, and not misleading.