Best Secured Loans for Manufacturing Businesses

The best secured loan for a UK manufacturing business depends on what you are securing against and why you need the money. Manufacturers commonly borrow against commercial property for growth or refinancing, against plant and machinery to fund equipment, or against invoices and stock for working capital. Lenders such as Shawbrook, Close Brothers, Aldermore, Lloyds Bank and ThinCats all serve this market, but they specialise in different security types and business profiles, so the right fit varies case by case.

This roundup explains the main types of secured lending for manufacturers, sets out how we assess the market as a whole-of-market broker, and compares several established lenders on an even-handed basis. Greenwood Capital is not a lender and this page is educational information, not financial advice. Always confirm current rates, fees and terms directly with any lender before you commit.

What is a secured business loan?

A secured business loan is finance where the borrower pledges an asset as security, giving the lender the right to recover value from that asset if the loan is not repaid. Because the lender takes less risk, secured facilities often allow larger sums and longer terms than unsecured borrowing, though the trade-off is that your asset is at risk if repayments stop.

For manufacturers, the main types of secured finance are:

• Property-backed term loans. A lump sum repaid over a fixed term, secured by a charge over commercial premises such as a factory, unit or warehouse. Used for expansion, buyouts, refinancing or larger equipment purchases.
• Commercial mortgages. Longer-term finance (often 15 to 25 years) to buy or refinance business premises. Suited to manufacturers who own or want to own their site rather than rent.
• Bridging finance. Short-term, property-secured lending, typically from a few months up to around two years, used to move quickly (for example buying a unit at auction) while longer-term funding is arranged. Costs more per month, so it is a timing tool, not permanent finance.
• Asset finance. Funding secured against the equipment itself. Hire purchase spreads the cost of buying machinery, while leasing lets you use kit without owning it. Refinancing (sale and leaseback) can release cash from machines you already own.

Many manufacturers use more than one of these at once, for example a commercial mortgage on the factory alongside asset finance on a new production line.

How we chose these lenders

As a whole-of-market broker, we look across the lending market rather than promoting any single provider. The lenders below were selected because they are established names that actively support manufacturing and industrial businesses, and because they illustrate the different routes a manufacturer can take.

When comparing options for a business, the factors that tend to matter most are the type of security accepted, the loan size range, term length, how the lender handles specialist or older machinery, speed of decision, and whether the provider understands the cash-flow cycles common in manufacturing. No lender is best for everyone, and the same business can get very different answers from different providers, which is exactly why comparing the market matters.

Secured loan providers for manufacturers

Shawbrook, best for flexible property-backed term loans

Shawbrook is a specialist bank that lends against commercial and semi-commercial property, and is often considered for manufacturers who want a property-secured term loan or commercial mortgage with a pragmatic, case-by-case approach. It tends to look at the wider picture rather than relying purely on automated scoring, which can help businesses that do not fit a rigid template.

It suits established manufacturers with property to secure against who want a considered underwriting approach. Watch-outs: as a specialist lender the pricing reflects the flexibility, so rates vary by risk profile and security quality. Confirm the current rate, arrangement fee and any early repayment terms directly before proceeding.

Close Brothers, best for plant and machinery asset finance

Close Brothers is a long-established merchant banking group with a dedicated asset finance arm that is well known in industrial and manufacturing sectors. It funds a broad range of plant, machinery and equipment through hire purchase and leasing, and has sector specialists who understand how specific types of manufacturing kit hold value.

It suits manufacturers buying, upgrading or refinancing machinery, including more specialist equipment that generalist lenders may shy away from. Watch-outs: asset finance structures differ (hire purchase leads to ownership, leasing does not), so make sure the structure matches whether you want to own the asset. Check the total cost over the term and any balloon or end-of-term arrangements.

Aldermore, best for combining property and asset finance

Aldermore is a specialist bank offering both commercial mortgages and asset finance, which makes it worth considering for manufacturers who need more than one type of secured facility. Providing complementary products under one roof can simplify arrangements for a growing business investing in both premises and equipment.

It suits SMEs that value a specialist lender used to real-world trading businesses rather than large corporates. Watch-outs: eligibility and pricing depend on the strength of the security and the accounts, so terms are not one-size-fits-all. Ask for a written illustration and confirm which products you actually qualify for.

Lloyds Bank, best for high-street commercial mortgages

Lloyds Bank is a major high-street bank with an established commercial arm offering secured term loans and commercial mortgages, and it can be a strong option for manufacturers with a solid trading history and good-quality property. High-street banks may offer competitive pricing for lower-risk cases and the reassurance of a large, familiar institution.

It suits well-established, profitable manufacturers with clean accounts and standard commercial premises. Watch-outs: mainstream banks can apply more standardised lending criteria, so businesses with irregular results, shorter trading histories or unusual property may find the process less flexible. Compare against specialist lenders before assuming the high street is cheapest for your profile.

ThinCats, best for larger cash-flow and growth loans

ThinCats is an alternative lender focused on funding established SMEs, often for larger amounts to support growth, acquisitions or management buyouts, using security that can include property and business assets. It tends to build a bespoke structure around a business rather than offering an off-the-shelf product.

It suits mid-sized manufacturers with ambitious plans that need a tailored, larger facility. Watch-outs: bespoke lending involves more detailed underwriting and information gathering, so it is not the fastest route for small, simple requirements. Clarify the fee structure and security requirements up front.

Comparison of secured loan options for manufacturers

Ranges and criteria change over time, so treat this as a starting point and confirm current details with each provider or through a broker.

Worked scenario: property loan versus asset finance

Consider a manufacturer that owns its factory and wants to buy a new CNC machine costing around 250,000. The business faces a choice between two routes, and comparing them shows how the decision plays out.

Option one is a property-backed term loan (for example the kind Shawbrook offers), releasing equity from the factory to fund the machine. This can spread repayments over a long term and keep monthly costs lower, but it places a charge over the premises and ties a core asset to the borrowing.

Option two is asset finance on the machine itself (for example through Close Brothers), where the equipment is the security. This keeps the property unencumbered and matches the finance to the useful life of the machine, though the term is usually shorter and the equipment is the asset at risk.

A business prioritising the lowest monthly outlay and long-term stability might lean towards the property route, while one wanting to protect its premises and match cost to the machine’s life might prefer asset finance. There is no universally correct answer, which is why weighing the specifics matters.

How to choose for your situation

Choosing the right secured loan comes down to matching the security you can offer and the purpose of the funds to the lender best suited to that combination. Ask yourself these questions before you compare offers:

• What am I securing against? Property points you towards commercial mortgages and term loans; equipment points towards asset finance.
• What is the money for? Long-term investment suits longer terms, while short-term timing needs may suit bridging.
• How long do I want to repay over? Matching the term to the asset’s life avoids paying for something long after its useful life ends.
• How quickly do I need funds? Specialist and alternative lenders can sometimes move faster than mainstream banks, though speed depends on the case.
• Do I want to own the asset? Hire purchase leads to ownership; leasing does not. This affects your balance sheet and tax position, so take professional advice on the accounting side.
• How strong are my accounts? A clean, profitable track record widens your options and can improve pricing.

What to check before you commit

Before signing any secured loan, confirm the full cost and the conditions attached to the security, not just the headline monthly figure. The details below have a real effect on total cost and flexibility.

• The total cost. Ask for the interest rate, all fees (arrangement, valuation, legal) and the total amount repayable over the term.
• Early repayment terms. Check whether repaying early triggers charges, which matters if you may refinance or sell.
• What is being secured. Understand exactly which assets are charged and the consequences if you default.
• Personal guarantees. Many secured business loans also require a personal guarantee. Be clear on what you are agreeing to.
• Variable versus fixed rates. A variable rate can rise, affecting affordability, so consider how a rate change would impact you.
• The lender’s status. Confirm the lender’s own regulatory position and read the agreement in full, ideally with independent professional advice.

Compare the market with Greenwood Capital

Every manufacturing business is different, and the same request can produce very different offers from different lenders. Rather than approach providers one at a time, you can let Greenwood Capital, a Manchester-based whole-of-market broker, compare the market and match your situation to the options that fit.

This is general help to help you understand your choices, not financial advice or a recommendation to take a particular product. Get in touch to talk through your requirements and let us do the legwork of comparing what is available.