Best UK business loans for manufacturing
Manufacturing is capex-heavy and order-led. Asset finance against plant and machinery dominates over unsecured term loans. Mainstream lenders that understand engineering / production cashflow win this segment.
Director, BestBusinessLoans
Oliver leads BestBusinessLoans's editorial reviews and methodology. With a background in UK commercial finance, he oversees lender research, rate verification and review independence.
Last reviewed: 26 April 2026
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SME term loan + commercial mortgage · £150k to £5m · 5 to 10 business days
Asset finance + commercial mortgage stack for owner-occupied manufacturers.
Read full Allica Bank review → -
SME term loan + bridging · £500k to £50m+ · 7 to 14 business days
Bespoke deals for £500k+ tickets including acquisition and capacity expansion.
Read full OakNorth review → -
Term loan · £10k to £500k · 1 to 3 business days
Term loans for working capital alongside asset finance.
Read full Funding Circle review → -
Flexi-loan / line of credit · £1k to £500k · Same day to 24 hours
Flexi-loan for raw-material cashflow gaps.
Read full iwoca review →
Side-by-side comparison
| Lender | Typical rate | Ticket | Decision | Best for |
|---|---|---|---|---|
| Allica Bank | From 7.99% APR | £150k to £5m | 5 to 10 business days | Asset finance + commercial mortgage stack for owner-occupied manufacturers. |
| OakNorth | Bespoke | £500k to £50m+ | 7 to 14 business days | Bespoke deals for £500k+ tickets including acquisition and capacity expansion. |
| Funding Circle | 6.9% to 26.9% APR | £10k to £500k | 1 to 3 business days | Term loans for working capital alongside asset finance. |
| iwoca | From 2% per month | £1k to £500k | Same day to 24 hours | Flexi-loan for raw-material cashflow gaps. |
What is the best business loan for a UK manufacturer?
For plant, machinery and vehicles, asset finance from Allica Bank, Aldermore or specialist providers. For owner-occupied facilities, an Allica or Shawbrook commercial mortgage. For working capital across order cycles, an iwoca flexi-loan or Funding Circle term loan.
How does asset finance work for UK manufacturers?
Hire purchase: pay deposit, fixed monthly payments, own the asset at end of term. Lease: pay monthly, lender owns the asset. Both treat the asset as primary security, so credit and turnover hurdles are lower than unsecured term lending.
Can UK manufacturers refinance existing equipment to release cash?
Yes, via sale and leaseback. Lender buys the existing asset from you, leases it back. Frees up balance-sheet cash. Allica, Aldermore and most specialist asset-finance lenders offer this on plant, vehicles and yellow goods.
What turnover does a UK manufacturer need for £500k+ funding?
For mainstream lenders, expect £2m+ annualised turnover and 3+ years of filed accounts for a £500k unsecured term loan. For asset-backed deals (asset finance, commercial mortgage), the asset is the gating factor, not turnover. OakNorth handles bespoke £500k to £50m deals.
Are there grants for UK manufacturers in 2026?
Yes. Innovate UK funds R&D and process innovation. Made Smarter offers digital adoption grants for SME manufacturers in eligible regions. Local growth funds support capacity expansion in target sectors. Grants typically require matched private funding.
How we ranked these
Weighted on asset finance and refinance (35%), manufacturing sector underwriting (20%), eligibility clarity (15%), decision speed (15%), Trustpilot record (15%).
Methodology weights
Weights specific to "Best UK business loans for manufacturing":
- Asset finance and refinance35%
- Manufacturing sector underwriting20%
- Eligibility clarity15%
- Decision speed15%
- Trustpilot record15%
Full methodology.
Also considered
- Aldermore (asset finance)
- BNP Paribas Leasing Solutions
- Specialist manufacturing-equipment lenders
Not for
Sole-trade manufacturers without filed accounts; new-build manufacturers under 18 months.
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Open our /get-quotes/ form →Reviewed by Oliver Mackman, Director. Last reviewed: 2026-04-26.