Precision engineering and aerospace manufacturing are industries where growth can require significant investment before the additional revenue arrives.

Winning a major new contract is good news.

But fulfilling it could mean purchasing another CNC machine.

Increasing production capacity.

Buying additional inspection and metrology equipment.

Recruiting skilled machinists and engineers.

Purchasing raw materials.

Investing in automation.

Moving into larger premises.

Upgrading software.

Or funding months of production before the customer pays.

For a precision engineering or aerospace supply-chain business, growth can therefore create a substantial funding requirement.

A company might need £100,000 for one machine.

Another might require £500,000 to increase production capacity.

A larger manufacturer could be considering a multi-million-pound expansion programme.

At Principal Business Finance, we work with a wide panel of commercial lenders and can help precision engineering, aerospace, advanced manufacturing and specialist engineering businesses explore funding for machinery, equipment, working capital, premises, acquisitions and wider business growth.

Depending on the requirement, funding could potentially include:

• Asset Finance
• Hire Purchase
• Finance Lease
• Business Loans
• Revolving Credit Facilities
• Invoice Finance
• Equipment Refinance
• Commercial Mortgages
• Acquisition Finance
• Secured Business Finance

Rather than automatically using existing cash or trying to fund the complete project through one product, different elements of an engineering investment can potentially be matched with different forms of commercial finance.

The Opportunity Across UK Aerospace and Advanced Manufacturing

The UK has a significant aerospace, defence, security and advanced-manufacturing ecosystem.

According to ADS, aerospace, defence, security and space businesses generated almost £110 billion of turnover in 2025.

Together, these sectors contributed £46.8 billion to the UK economy and directly employed approximately 468,500 people.

More than 1,000 of ADS’s 2,000-plus member companies are SMEs.

That is particularly relevant because behind the major aerospace manufacturers sits an extensive supply chain of:

• Precision engineers
• Component manufacturers
• CNC machining businesses
• Fabricators
• Toolmakers
• Surface-treatment specialists
• Electronics manufacturers
• Composite specialists
• Testing businesses
• Maintenance businesses
• Specialist suppliers

Demand within commercial aerospace is also substantial.

ADS reported that the global aircraft backlog reached a record 16,371 aircraft at the end of 2025, representing more than 13 years of work for the UK aerospace sector at then-current production rates.

By May 2026, that backlog had increased further to 16,909 aircraft.

For UK suppliers, that creates considerable opportunity.

But taking advantage of increased demand can require investment.

Growth Can Create a Funding Requirement

Imagine a precision engineering company is operating close to capacity.

It wins a new contract worth:

£2 million per year.

That’s excellent news.

But the existing factory cannot produce the additional components efficiently.

The company now needs:

£350,000 – new CNC machinery

£75,000 – inspection and metrology equipment

£50,000 – automation

£75,000 – recruitment and training

£100,000 – additional materials and working capital

Total investment:

£650,000

The contract may ultimately generate significant revenue.

But the company has to spend much of that £650,000 before receiving the additional customer income.

This is one of the fundamental funding challenges within manufacturing.

Growth consumes cash before it generates cash.

Commercial finance can potentially bridge that gap.

CNC Machine Finance

CNC machinery can represent one of the largest capital investments within a precision engineering business.

Depending on the operation, equipment could include:

• CNC milling machines
• CNC lathes
• 5-axis machining centres
• Multi-axis machines
• Sliding-head lathes
• Turn-mill centres
• Vertical machining centres
• Horizontal machining centres
• Grinding machines
• EDM equipment
• Laser cutting machinery
• Waterjet systems

A high-specification machine can cost hundreds of thousands of pounds.

Purchasing several machines simultaneously can turn a capacity expansion into a seven-figure investment.

Suitable CNC equipment could potentially be funded through Asset Finance, allowing the business to spread the cost over an agreed period rather than purchasing the machinery entirely from existing cash.

Example: Financing a £250,000 CNC Machine

Imagine an established precision engineering company wants to purchase a new 5-axis machining centre costing:

£250,000.

The company has £400,000 available in cash.

It could purchase the machine outright.

That would leave:

£150,000.

But the company also needs cash for:

• Materials
• Wages
• Tooling
• Energy
• Tax
• Maintenance
• Recruitment
• Unexpected expenditure

Alternatively, suitable Asset Finance could potentially be used to acquire the machine.

The company gets the additional production capacity while retaining more of its existing liquidity.

Finance naturally carries a cost, so the total amount payable should be considered.

But so should the commercial value of retaining working capital.

Hire Purchase for Engineering Machinery

Hire Purchase is commonly used to fund machinery and equipment.

Under a typical arrangement:

1. The business contributes an agreed deposit.
2. The finance provider funds the remaining purchase price.
3. The business makes regular repayments over an agreed term.
4. Subject to the agreement and all required payments being made, ownership normally transfers to the business.

This can potentially suit a precision engineering company purchasing machinery it expects to use for many years.

The funding term can potentially be structured around the expected useful economic life of the asset, subject to lender criteria.

Finance Lease for Engineering Equipment

A Finance Lease could provide another option.

Under a typical Finance Lease, the finance provider purchases the eligible equipment and the business makes agreed rentals.

The precise structure and end-of-term arrangements depend on the agreement.

Finance Lease can potentially suit businesses more interested in using the machinery to generate revenue than owning the asset outright.

The appropriate structure will depend on the machine, business, supplier, deposit, term and wider commercial objectives.

Used Engineering Machinery Finance

Precision engineering businesses don’t necessarily need to purchase new machinery.

A used CNC machine could potentially provide the required production capability at a lower purchase price.

For example:

New machine – £300,000

versus:

Suitable used machine – £175,000

Depending on the machine’s age, condition, supplier and lender appetite, used engineering equipment could potentially be financed.

This can be particularly useful when a company needs additional capacity quickly or where purchasing new equipment isn’t commercially necessary.

Metrology and Inspection Equipment Finance

Precision engineering is about far more than producing a component.

The business also needs to demonstrate that it has manufactured that component correctly.

This can create investment requirements in:

• Coordinate Measuring Machines (CMM)
• Optical measurement systems
• Laser scanners
• Surface measurement equipment
• Calibration equipment
• Vision systems
• Inspection equipment
• Testing machinery
• Quality-control technology

In aerospace and other high-specification industries, quality and traceability can be critical.

Investing in inspection capability could potentially allow an engineering company to bring processes in-house, increase capacity and pursue higher-value work.

Suitable metrology and inspection equipment could potentially be funded through Asset Finance.

Funding Automation and Robotics

Automation can help precision engineering businesses increase output without increasing labour at exactly the same rate.

Potential investment could include:

• Robotic arms
• Cobots
• Automated loading systems
• Bar feeders
• Pallet systems
• Automated inspection
• Material-handling systems
• CNC automation
• Tool-management systems

Consider a CNC machine that currently requires significant operator intervention.

Adding automated loading could potentially allow longer production runs or additional unattended production.

That could improve utilisation of an asset the business already owns.

Instead of financing another complete machine, the company may be able to increase capacity through automation.

Financing a Complete Production Cell

Sometimes the requirement isn’t one machine.

It is a complete manufacturing cell.

For example:

£300,000 CNC machining centre

£75,000 robotic loading system

£30,000 tooling

£25,000 inspection equipment

£20,000 installation

Total:

£450,000.

Suitable parts of the complete project could potentially be considered for Asset Finance.

Other installation or project costs may potentially require a Business Loan or another funding structure.

This is why it can be useful to assess the complete investment rather than financing each requirement in isolation.

Tooling Finance

Machinery may only be part of the investment required to win or fulfil a contract.

A manufacturer may also need:

• Jigs
• Fixtures
• Moulds
• Dies
• Cutting tools
• Specialist tooling
• Workholding systems
• Bespoke production equipment

A significant new contract could require tens or hundreds of thousands of pounds of tooling before volume production begins.

Depending on the assets and lender criteria, suitable tooling may potentially be considered as part of a wider equipment-finance or business-funding requirement.

Software and Digital Manufacturing Investment

Modern precision engineering is increasingly digital.

A business may invest in:

• CAD software
• CAM software
• ERP systems
• MRP systems
• Production-planning software
• Quality-management systems
• Tool-management software
• Cybersecurity
• Data collection
• Machine monitoring
• Digital inspection systems

Software can improve:

Production planning.

Machine utilisation.

Traceability.

Stock management.

Quoting.

Quality control.

Customer reporting.

Some eligible technology assets may potentially be financed, while broader software implementation and digital-transformation expenditure could potentially form part of a Business Loan or wider technology funding requirement.

Working Capital for Precision Engineering Businesses

One of the most important funding requirements within manufacturing isn’t machinery.

It’s working capital.

Consider what happens when a precision engineering company wins a major order.

It may need to purchase:

Aluminium.

Titanium.

Steel.

Specialist alloys.

Cutting tools.

Components.

It then has to pay:

Machinists.

Engineers.

Inspectors.

Energy costs.

Subcontractors.

The product is manufactured.

Inspected.

Delivered.

And only then does the payment period begin.

If the customer pays 60 days after invoice, a substantial amount of money can be tied up before the business receives the cash.

Growth Can Make Cash Flow Tighter

This is one of the counterintuitive features of manufacturing growth.

A business can become:

Busier.

More profitable.

And:

More cash constrained.

at the same time.

Imagine a manufacturer previously produced:

£500,000 of goods per month.

It grows to:

£750,000 per month.

That’s an additional:

£250,000 of monthly production.

If a significant proportion of the production costs must be paid before customers settle their invoices, the business may need considerably more working capital.

Growth isn’t necessarily causing a problem.

Growth itself is creating the funding requirement.

Invoice Finance for Aerospace and Engineering Businesses

For suitable B2B businesses, Invoice Finance can potentially support this working-capital cycle.

Rather than waiting for eligible customer invoices to reach their normal payment date, the business can potentially access a proportion of the invoice value earlier.

Imagine an engineering company has:

£750,000 in eligible outstanding customer invoices.

That represents a substantial amount of money tied up in the sales ledger.

Invoice Finance could potentially release cash against eligible invoices, subject to the facility terms.

That cash could then potentially be used for:

• Materials
• Payroll
• Suppliers
• Tooling
• New orders
• Production costs

This can make Invoice Finance particularly relevant to growing manufacturers supplying larger businesses on extended payment terms.

Invoice Finance Can Grow Alongside Turnover

One of the potential attractions of Invoice Finance is that the facility can broadly move with eligible sales.

A fixed £250,000 Business Loan remains £250,000.

But if an eligible Invoice Finance facility is linked to the value of the sales ledger, increased turnover can potentially create greater funding availability, subject to the facility terms and debtor eligibility.

For a rapidly growing precision engineering company, that can potentially make the facility particularly relevant.

Revolving Credit Facilities

A Revolving Credit Facility (RCF) can provide another source of flexible working capital.

Subject to the facility terms, a business receives an agreed credit limit and can potentially:

Draw funds.

Repay them.

And:

Use the available limit again.

This could potentially support fluctuating requirements such as:

• Bulk material purchases
• Tooling
• Contract mobilisation
• Supplier payments
• Unexpected expenditure
• Short-term working-capital gaps

For an engineering business whose cash requirement changes from month to month, flexibility can be valuable.

Funding Raw Materials

Raw materials can be particularly expensive in precision engineering.

This can include:

• Aluminium
• Stainless steel
• Titanium
• Nickel alloys
• Specialist steels
• Composites
• Aerospace-grade materials

A company might need to purchase significant quantities before beginning production.

Imagine a new contract requires:

£200,000 of material.

The customer will eventually pay for the finished components.

But the manufacturer needs to purchase the material now.

A Business Loan or suitable working-capital facility could potentially help fund the initial requirement.

Bulk Purchasing and Stock

Businesses may also have opportunities to purchase material in larger quantities.

For example, a supplier might offer a better commercial price if the manufacturer commits to a larger order.

The company could potentially reduce unit costs—but only if it has sufficient cash available to make the purchase.

Working-capital funding can potentially allow a business to take advantage of suitable bulk-purchasing opportunities without using all of its existing liquidity.

Aerospace Supply-Chain Ramp-Up

This issue is particularly relevant within aerospace.

ADS says the UK aerospace sector is currently ramping up production to meet unprecedented levels of demand.

Its 2026 supply-chain research also highlights the pressures accompanying that growth: shortages of skilled personnel remained the most common constraint among surveyed aerospace supply-chain companies, nearly 40% reported production-capacity constraints, and a third cited financial-resource constraints, with working capital remaining particularly tight.

For suppliers, a production ramp-up can therefore create simultaneous requirements for:

More machinery.

More people.

More materials.

More working capital.

Financing only the machine may solve one part of the problem.

The business may need to consider the complete capital requirement.

Example: £1 Million Aerospace Supply-Chain Expansion

Imagine an established aerospace precision engineering business secures additional long-term work.

To increase capacity it requires:

£500,000 – CNC machinery

£100,000 – metrology and inspection equipment

£100,000 – automation

£50,000 – software and technology

£100,000 – recruitment and training

£150,000 – materials and working capital

Total:

£1 million.

One option would be to fund the entire £1 million from company cash.

Another would be to apply for a £1 million generic Business Loan.

But neither is necessarily the only structure.

The company could potentially explore:

Asset Finance
for eligible CNC machinery, automation and inspection equipment.

Business Finance
for wider project expenditure.

Invoice Finance
to release cash from eligible B2B invoices.

RCF or Working Capital Finance
for materials and fluctuating production expenditure.

The exact structure would depend on the company and lender criteria.

The key principle is:

Match the finance to the requirement.

Recruitment and Skilled Employees

Advanced manufacturing requires skilled people.

A growing business may need:

• CNC machinists
• CNC programmers
• Manufacturing engineers
• Quality engineers
• Inspectors
• Production managers
• Design engineers
• Maintenance engineers
• Apprentices

ADS reports that aerospace, defence, security and space businesses directly support hundreds of thousands of UK jobs, with skills remaining a significant issue for companies looking to ramp up production.

Recruitment itself creates a working-capital requirement.

A new engineer may need:

Salary.

Training.

Equipment.

Software.

PPE.

Time before reaching full productivity.

If a company recruits ten employees ahead of a new production programme, that upfront cost can become substantial.

A Business Loan or working-capital facility could potentially help support suitable expansion expenditure.

Funding Apprentices and Future Capacity

Precision engineering businesses also need to think beyond immediate recruitment.

Developing apprentices can help create the skilled workforce required for future growth.

ADS reports that its aerospace, defence, security and space sectors support around 29,000 apprenticeships.

For individual SMEs, investing in young talent can form part of a longer-term capacity strategy.

The wider financial requirement may include new equipment, training areas and working capital alongside recruitment.

Factory Expansion and Fit-Out

Eventually, more machinery creates another problem:

Where do you put it?

A manufacturer may reach the physical limits of its existing premises.

Expansion could involve:

• Taking an additional industrial unit
• Moving to a larger factory
• Extending an existing facility
• Reconfiguring production areas
• Increasing electrical capacity
• Installing compressed air
• Improving extraction
• Adding crane systems
• Creating clean areas
• Adding inspection facilities
• Expanding offices
• Increasing storage

The machinery itself may suit Asset Finance.

The wider fit-out and premises expenditure may require a Business Loan, secured facility or property funding.

Example: £2 Million Factory Expansion

Imagine an engineering business wants to increase its manufacturing footprint.

The complete project is:

£750,000 machinery

£250,000 automation

£300,000 factory fit-out

£200,000 electrical and infrastructure works

£150,000 inspection equipment

£100,000 software

£100,000 recruitment

£150,000 working capital

Total:

£2 million.

This is where using a single funding product for everything may not necessarily be the most practical approach.

Different lenders and facilities could potentially be used for different parts of the investment.

Commercial Mortgages for Engineering Businesses

Some established manufacturers may decide to purchase their premises.

A Commercial Mortgage could potentially support the acquisition of a suitable:

• Factory
• Industrial unit
• Engineering facility
• Warehouse
• Office and production site

Purchasing property can be a significant strategic step for an established manufacturer.

For example, the company could potentially use:

Commercial Mortgage – premises

Asset Finance – machinery

Business Loan – fit-out

Invoice Finance – working capital

This separates the long-term property asset from the machinery and operational funding requirements.

Property-Secured Business Finance

Established businesses or directors with suitable property security may also potentially access secured commercial funding.

This can be relevant for larger requirements such as:

• Factory expansion
• Acquisitions
• Major machinery investment
• Refinancing
• Working capital
• Large growth projects

The available structure will depend on the property, existing charges, business affordability and lender criteria.

Equipment Refinance

Precision engineering businesses can accumulate significant value in machinery over time.

Imagine a company owns outright:

£1.5 million of CNC machinery and equipment.

Those assets are essential to the business.

But they also represent capital tied up within the company.

Depending on the machinery, age, value and lender criteria, Equipment Refinance could potentially release capital against suitable existing assets while the business continues to use them.

The released funds might then support:

• Additional machinery
• Working capital
• Factory expansion
• Acquisitions
• Recruitment
• Contract mobilisation

This can potentially allow an established engineering business to use the strength of its existing asset base to help fund the next stage of growth.

Replacing Older Machinery

Finance isn’t only for expansion.

A business may need to replace machinery that has become:

Slower.

Less accurate.

More expensive to maintain.

Less energy efficient.

Less capable than newer technology.

Older equipment can create hidden costs through:

• Downtime
• Maintenance
• Lower productivity
• Higher scrap
• Longer cycle times
• Reduced capability

Replacing an older machine with newer technology may therefore be about improving competitiveness rather than simply increasing capacity.

Energy-Efficient Manufacturing Equipment

Energy can represent a significant operating cost within manufacturing.

Businesses may invest in:

• More efficient machinery
• Compressors
• LED lighting
• Solar panels
• Battery storage
• Heating systems
• Building-management systems
• Energy-efficient extraction
• EV charging

Commercial finance can potentially help fund suitable energy-efficiency investments alongside production machinery.

For manufacturers operating machinery for long periods each day, relatively small efficiency improvements can become commercially meaningful at scale.

Funding Quality and Certification Development

A precision engineering business looking to move into aerospace or higher-value supply chains may need to invest in its wider operation.

That could include expenditure around:

• Quality-management systems
• Traceability
• Inspection
• Software
• Cybersecurity
• Staff training
• Process improvement
• Documentation
• Testing

The exact certification requirements depend on the markets and customers the business intends to serve.

The wider point is that moving into higher-value sectors can require investment before the new revenue arrives.

A Business Loan or other growth funding could potentially support suitable project expenditure.

Cybersecurity Investment

Modern engineering businesses hold valuable digital information.

This can include:

• CAD files
• Customer drawings
• Production data
• Intellectual property
• Commercial information
• Supplier data

Manufacturers may therefore need to invest in:

• Servers
• Backup systems
• Cybersecurity software
• Network infrastructure
• Access control
• IT hardware
• Cloud systems
• Business-continuity technology

Some eligible hardware could potentially be financed as equipment, while wider IT and software projects could potentially be funded through broader commercial finance.

Acquisition Finance for Precision Engineering Businesses

Organic growth isn’t the only route to expansion.

An engineering company may decide to acquire:

• A competitor
• A specialist machining company
• A fabrication business
• A complementary supplier
• A customer or supplier
• A business with specialist equipment
• A company with accreditations or capabilities it currently lacks

An acquisition can potentially provide immediate access to:

Customers.

Employees.

Machinery.

Premises.

Contracts.

Technical capability.

Geographic coverage.

Suitable Acquisition Finance could potentially support the purchase.

Example: Acquiring Another Engineering Company

Imagine an established precision engineer has turnover of:

£8 million.

It identifies another business for sale at:

£2 million.

The target has:

• £3 million turnover
• Specialist machining capability
• Skilled employees
• Established aerospace customers
• Valuable machinery

Rather than waiting years to develop that capability organically, an acquisition could accelerate growth.

The transaction could potentially involve a combination of:

• Buyer cash
• Acquisition Finance
• Secured lending
• Asset Finance
• Vendor consideration

The precise structure would depend on the businesses and transaction.

Management Buyouts and Management Buy-Ins

Engineering companies are often owner-managed businesses.

As founders approach retirement, succession can become increasingly important.

A management team may want to purchase the company through a Management Buyout (MBO).

Alternatively, an external management team may acquire the business through a Management Buy-In (MBI).

Suitable commercial finance can potentially form part of the transaction structure.

For a profitable engineering business with established customers, assets and management, this can help support continuity while transferring ownership.

Refinancing Existing Business Debt

A growing engineering company may accumulate several funding facilities over time.

For example:

Machine finance.

Business Loan.

Short-term working-capital loan.

Another facility for a factory project.

Eventually, the combined monthly repayments can place pressure on cash flow.

Instead of simply adding another short-term loan, it may be possible to explore refinancing or consolidating suitable existing borrowing.

Depending on the circumstances, refinancing could potentially:

• Reduce monthly repayment pressure
• Extend repayment periods
• Simplify facilities
• Release additional working capital
• Better align borrowing with the company’s current size

Extending the term can increase the total amount of interest paid, so the complete cost of the replacement funding should be considered.

Funding Research, Development and New Products

Precision engineering companies may also invest in:

• Prototypes
• New product development
• Testing
• Tooling
• Engineering time
• New manufacturing processes

The commercial return may not be immediate.

That can create a funding gap between development expenditure and eventual sales.

A Business Loan or other commercial funding could potentially support suitable development projects, subject to lender appetite and affordability.

Export Growth

Aerospace and advanced manufacturing are highly international sectors.

An engineering company may win customers overseas and need to increase capacity to service those contracts.

Export growth can potentially create additional requirements for:

• Materials
• Production
• Logistics
• Working capital
• Insurance
• Staff
• Machinery

Again, a growing order book doesn’t automatically mean the cash required to fulfil those orders is already available.

Funding can help bridge the gap between winning the work and getting paid for it.

Don’t Let a Full Order Book Create a Cash-Flow Problem

This is perhaps one of the most important points for manufacturing businesses.

A strong order book is positive.

But a business can still run into cash-flow pressure if it cannot finance the production required to fulfil that order book.

Imagine the company has:

£5 million of confirmed orders.

That sounds excellent.

But fulfilling those orders requires:

£1.5 million of materials.

£1 million of payroll and production expenditure.

And customers don’t pay until after delivery.

The order book has value.

But it doesn’t pay today’s supplier invoice.

Manufacturers therefore need to think about funding capacity and working capital together.

What Might Lenders Look For?

Requirements will depend on the facility and business.

An established precision engineering or aerospace supplier could typically be asked to provide:

• Latest annual accounts
• Management accounts
• Business bank statements
• Existing borrowing
• Machinery quotations
• Supplier information
• Funding requirement
• Purpose of funds
• Director information

For growth projects, lenders may also want to understand:

• Order book
• Customer contracts
• Pipeline
• Customer concentration
• Existing capacity
• Reason for new machinery
• Forecasts
• Business contribution
• Expected impact of the investment

For Asset Finance, the lender will also consider the equipment itself.

Customer Concentration in Aerospace

One issue that can be particularly relevant in specialist engineering is customer concentration.

A business might generate a substantial proportion of its turnover from:

One aerospace prime.

One Tier 1 supplier.

Or:

A small group of major customers.

That isn’t automatically negative.

Long-term customer relationships can be a strength.

But lenders may want to understand:

• Length of relationship
• Contract position
• Order visibility
• Payment history
• Customer dependency
• Plans to diversify

Providing context around the relationship can therefore be important when presenting the funding requirement.

Finance for New-Start Precision Engineering Businesses

New engineering businesses can potentially obtain finance too, although options may be more limited than for an established manufacturer.

Lenders could place greater emphasis on:

• Director experience
• Industry background
• Qualifications
• Personal investment
• Personal credit
• Confirmed customers
• Contracts
• Machinery being purchased
• Business plan
• Forecasts

Imagine an engineer has:

20 years’ aerospace manufacturing experience.

They establish a new precision machining company.

They have:

£100,000 personal investment.

Confirmed customer interest.

Relevant technical expertise.

A clear machinery requirement.

The company may be new, but the people behind it aren’t necessarily inexperienced.

That distinction can be important.

Example: Funding a £3 Million Growth Programme

Consider an established precision engineering company experiencing rapid demand growth.

Its expansion programme includes:

£1.2m – CNC machinery

£300k – automation

£200k – metrology

£400k – factory expansion and fit-out

£200k – technology and software

£200k – recruitment

£500k – materials and working capital

Total:

£3 million.

The business could potentially consider:

Asset Finance

For eligible CNC machinery, automation and metrology equipment.

Business Loan

For suitable wider growth and project expenditure.

Invoice Finance

To release cash from eligible unpaid customer invoices.

Revolving Credit Facility

For fluctuating materials and working-capital requirements.

Commercial Mortgage or Secured Finance

Where a property purchase or suitable security forms part of the project.

Equipment Refinance

Potentially releasing capital from existing unencumbered machinery.

This demonstrates why larger manufacturing projects can benefit from considering the complete funding structure, rather than automatically looking for one £3 million loan.

How Principal Business Finance Can Help Precision Engineering & Aerospace Businesses

At Principal Business Finance, we work with a wide panel of commercial lenders and can help precision engineering, aerospace, manufacturing and advanced-engineering businesses explore funding for a wide variety of requirements.

This could include:

CNC Machine Finance

Funding for eligible machining centres, lathes, mills, grinding machines and specialist production equipment.

Engineering Equipment Finance

For suitable inspection, metrology, automation, robotics, tooling and manufacturing equipment.

Hire Purchase

Potentially providing a route to ownership for eligible machinery.

Finance Lease

For businesses looking to fund the use of suitable equipment through a lease-based structure.

Business Loans

For working capital, recruitment, expansion, fit-outs, software, materials and wider growth expenditure.

Invoice Finance

Potentially releasing cash tied up in eligible B2B invoices.

Revolving Credit Facilities

Providing flexible working capital for suitable businesses.

Equipment Refinance

Potentially releasing capital tied up in suitable machinery already owned by the company.

Commercial Mortgages

For suitable businesses purchasing factories, industrial units or other commercial premises.

Acquisition Finance

For companies purchasing another engineering or manufacturing business.

Secured Business Finance

Potentially supporting larger growth, acquisition, refinancing or property-backed requirements where suitable security is available.

Funding Growth in Precision Engineering and Aerospace

There is significant opportunity across UK aerospace and advanced manufacturing.

ADS says aerospace is ramping production to meet unprecedented demand, while the wider aerospace, defence, security and space sectors generated almost £110 billion of turnover in 2025.

But opportunity doesn’t automatically create capacity.

Businesses still need:

Machines.

Materials.

People.

Premises.

Technology.

And:

Cash.

A precision engineering company may have the technical capability and customer demand to grow significantly but still require funding to bridge the gap between today’s investment and tomorrow’s revenue.

That’s where commercial finance can play an important role.

At Principal Business Finance, we can help businesses explore funding for the complete growth requirement through our wide panel of commercial lenders.

Whether you’re looking to finance a £100,000 CNC machine, invest £1 million in additional aerospace production capacity, release cash from your sales ledger, purchase a factory or acquire another engineering company, we can help explore the available options.

If your precision engineering or aerospace business is planning its next stage of growth, contact Principal Business Finance to discuss the funding requirement. Contact us on 01604217998, email info@principalbusinessfinance.co.uk, or enquire here.

All finance is subject to application, status, lender criteria and approval. Security and/or personal guarantees may be required depending on the lender and facility. Illustrative examples are for explanatory purposes only and do not represent guaranteed funding, revenue or commercial outcomes.