What loan amounts and repayment terms are available to manufacturers?

UK manufacturers: loan amounts and repayment terms at a glance

Updated October 2025

Most established UK manufacturers can access business finance from around £10,000 to £5 million+, depending on the funding product, security available, turnover, and trading history. Typical repayment terms range from 3 months to 7 years, with shorter durations for working capital and trade finance, and longer terms for asset purchases and property-backed lending. Best Business Loans does not lend or offer advice; we introduce you to lenders or brokers who may offer suitable options, subject to status and provider criteria.

Quick overview — typical amounts and terms by funding type

Manufacturers tend to combine different facilities to match varied needs such as equipment purchase, raw material imports, payroll, or energy upgrades. Below is a concise guide to the most common product ranges seen in the market today. All figures are indicative and can vary by provider, sector risk, and collateral.

• Unsecured business loans: £10,000 to £500,000; 6–60 months (often monthly repayments).
• Secured term loans: £250,000 to £5 million+; 2–7 years (sometimes up to 10 years, provider dependent).
• Asset finance (HP/lease): £10,000 to £2 million+; 1–7 years (balloons and seasonal profiles available).
• Asset refinance (sale & HP back): £25,000 to £2 million; 1–5 years.
• Invoice finance (factoring/discounting): Facilities £50,000 to £10 million; advances typically 70–95% of invoice value; revolving with 12–36 month agreements.
• Trade/import finance: £50,000 to £5 million; 30–180 days per cycle (L/Cs, supplier payments, bonds).
• Stock/inventory finance: £100,000 to £5 million; usually 3–12 months.
• VAT and tax loans: £10,000 to £500,000; typically 3–12 months.
• R&D tax credit loans: £50,000 to £2 million; often 3–12 months aligned to HMRC repayment timelines.
• Green/energy-efficiency finance: £25,000 to £2 million+; 2–7 years depending on asset life.
• Revenue-based finance: £10,000 to £500,000; flexible 3–12 months (repay as a % of turnover).
• Growth Guarantee Scheme (British Business Bank): up to £2 million per borrower (eligibility and provider rules apply); term loans/asset finance typically 3 months to 6 years.

If you want options tailored to your plant, order book, or equipment plans, you can request a free eligibility check and be introduced to relevant providers. For a deeper sector view, see our page on manufacturing business loans.

How much can manufacturers borrow — and on what basis?

Unsecured business loans usually cap around £250,000–£500,000 for established SMEs, with decisions based on profitability, cash flow, and director credit profiles. Lenders often look for 12–24 months’ trading, strong bank statements, and a healthy Debt Service Cover Ratio (DSCR). Personal guarantees are common; the business remains fully liable for repayment.

Secured term loans can run into the millions if backed by property, machinery, or comprehensive debentures. Amounts typically reflect a loan-to-value (LTV) or enterprise value, with prudent gearing expectations for cyclical industries. Where heavy plant or property exists, lenders may stretch terms and amounts, subject to independent valuations.

Asset finance for CNC machinery, robotics, presses, and vehicles is often sized to a percentage of the asset cost or valuation. New equipment purchases can be funded at 100% of invoice + VAT (VAT often deferred) in some cases, while refinance might support 50–80% LTV depending on age, condition, and resale demand. Deposits and balloon payments help tailor monthly outgoings.

Invoice finance aligns more with sales volume than profit, granting a revolving line linked to your debtor ledger. Facilities for mid-market manufacturers commonly sit between £250,000 and £5 million, with advance rates of 80–90% for mainstream debtors. Strong credit control, clean concentration, and debtor quality drive higher limits.

Trade and stock finance limits are set against confirmed orders, contracts, or inventory valuations. Facilities of £250,000 to £5 million are typical where there’s a transparent supply chain and verifiable exit (e.g., invoice finance take-out). Structured solutions may blend import L/Cs, supplier payments, and invoice discounting to fund the full cycle.

What repayment terms are available — and how are they structured?

Working capital loans commonly run 6–36 months, with equal monthly amortisation. Shorter durations reduce total interest cost but increase monthly repayments, so lenders assess affordability against cash flow volatility and seasonality. Some providers allow interest-only periods for a few months to bridge a production ramp-up.

Asset finance terms typically match asset life at 2–7 years. Hire purchase (HP) ends with ownership after a nominal fee, while finance leases can offer more flexibility on end-of-term choices. Structures can include seasonal profiles, deposits, and balloon payments to keep monthly costs aligned with output or contract cycles.

Invoice finance is revolving, so “term” refers to agreement length (often 12–36 months) and the debtor days over which invoices are collected. You draw, repay as invoices settle, and redraw continually. Selective invoice finance lets you fund specific invoices or buyers on-demand for extra flexibility.

Trade finance and stock facilities run in 30–180 day cycles, sometimes up to 12 months for inventory-heavy operations. Repayment is usually a bullet or short schedule once goods are delivered and invoices raised. These facilities are often paired with invoice finance to close the working capital loop.

Government guarantee-backed loans (such as those under the British Business Bank’s Growth Guarantee Scheme) typically offer 3 months to 6 years for term loans and asset finance. Overdrafts and invoice finance lines may be agreed for 3 months to 3 years. The guarantee supports the lender, not the borrower; you remain fully liable.

What determines the amount and term a manufacturer can obtain?

Financial performance: Lenders evaluate turnover consistency, gross margins, EBITDA, and leverage. Stable profits and strong DSCRs support larger facilities and longer terms, reducing monthly strain.

Asset base and collateral: Valuable machinery, property, or unencumbered assets can increase headroom and extend tenors. Independent valuations and asset age, usage, and liquidity shape LTV and structure.

Debtor book quality: For invoice finance, concentration limits, disputes, credit insurance, and debtor ratings all influence advance rates and facility size. Clean, diversified ledgers unlock better terms.

Order book and contracts: Confirmed purchase orders, framework agreements, or government/blue-chip contracts strengthen proposals. Trade and stock finance become more flexible with visible end-customers and defined exits.

Cash flow timing: Seasonality, batch production, and long lead times can drive demand for tailored profiles. Lenders may propose stepped repayments, seasonal deferrals, or interest-only periods to match cash conversion.

Environmental upgrades: Energy-efficiency projects (e.g., solar, heat recovery, VSDs) can justify longer terms where savings offset repayments. Some lenders classify these as “green” assets and may offer favourable structures.

Security and guarantees: Personal guarantees (PGs) are common on unsecured facilities and some secured deals. Cross-collateralisation, debentures, and intercreditor agreements may apply in multi-lender stacks.

Regulatory and scheme criteria: Facilities under the Growth Guarantee Scheme must meet the scheme rules and lender policy. Start-ups and sole traders are typically out of scope for our platform.

Choosing the right amount and term — and how Best Business Loans can help

When selecting your amount, consider the cash conversion cycle from raw material to finished goods and cash received. Aim to balance monthly affordability with total cost of funds and asset life. Over-borrowing can constrain flexibility, while under-borrowing can force costly short-term top-ups.

For capex, try to align term with the asset’s economic life and expected productivity gains. For working capital, pick facilities that move with your ledger and purchase cycle to avoid mismatches. For growth, model scenarios for new contracts or product lines and sanity-check repayments against realistic lead times and margins.

Best Business Loans helps you compare options and structures from a network of UK lenders and brokers. We don’t supply loans or provide regulated advice; we introduce you to suitable providers based on your profile and objectives. It’s fast to submit a Quick Quote, and there’s no obligation to proceed.

What to prepare before you apply

• Financials: last 2 years’ accounts, recent management information, and 6–12 months of bank statements.
• Debtor/creditor: aged ledgers, any credit insurance, and dispute policies.
• Assets: equipment lists, invoices/quotes, and existing finance schedules.
• Pipeline: order book, contracts, and forecasts showing realistic assumptions.
• Use of funds: a clear, itemised plan and the expected ROI or savings.

FAQs for manufacturers

What’s the largest facility a mid-sized UK manufacturer can realistically access? With strong assets, ledgers, and profitability, facilities can exceed £5 million across a blended stack (asset finance + invoice finance + term loan). Exact headroom depends on valuations and affordability.

Can I get long terms without offering security? Unsecured loans rarely exceed 60 months and are capped by risk appetite. Larger or longer funding typically needs collateral or a structured facility.

How are repayments structured? Most loans amortise monthly, but asset finance can include balloons and seasonal profiles. Trade and stock finance often repay in bullet fashion once goods convert to receivables.

Is early settlement allowed? Many providers allow early repayment, sometimes with fees or a rebate calculation. Check your agreement carefully for notice periods and charges.

Can terms flex with my seasonality? Yes, some lenders offer seasonal or stepped repayments to match production or contracts. This is common in asset finance and sometimes in unsecured term loans.

What about the Growth Guarantee Scheme? Selected lenders offer loans up to £2 million per borrower under the scheme, with typical terms of 3 months to 6 years. The guarantee supports the lender, and the borrower remains liable.

Key takeaways

• Manufacturers commonly access £10,000 to £5 million+ across blended facilities.
• Repayment terms range from 3 months to 7 years, aligned to purpose and asset life.
• Amounts and terms depend on cash flow, collateral, debtor quality, and order visibility.
• Match facility type to use: asset finance for equipment, invoice/trade finance for working capital.
• Request a free Quick Quote to be introduced to relevant UK lenders or brokers.

Important information: Best Business Loans operates as an independent introducer. We do not offer loans or provide financial advice, and we are not authorised by the FCA. Any funding is subject to lender eligibility, credit assessment, and terms. Figures and examples in this article are illustrative only and not an offer or recommendation. Borrowing involves risk. Secured borrowing may put assets at risk if you do not keep up repayments.