Packaging finance for equipment and machinery

We understand the significant contribution that packaging manufacturers make to the UK economy.

Packaging is a diverse and growing sector and one that continues to advance with new developments in technology. Businesses who are planning for growth can take advantage of our flexible finance solutions tailored to ensure they find an affordable way to spread the cost of the assets or machinery needed, through a range of products such as hire purchase, lease or refinance. Close Brothers Asset Finance will provide funding solutions for all types of assets, large or small.

Our team of specialists has in-depth knowledge of the packaging industry and extensive experience of delivering funding for the assets required to support businesses with ambitions for growth and need for investment. The Environment Agency has confirmed that the amount of packaging waste recycled in 2015 has hit target. The most notable returns were in plastic, where despite tough trading conditions there Q3 2015 saw the largest return ever seen in plastic.

As a primary packaging material, glass continues to thrive. Europe, being the second largest market is expected to play a key role in boosting demand for glass packaging over the next 5 years. Glass has been the material of choice for decades due to its premium quality, its barrier to contamination, provides a longer shelf life for products and it is highly recyclable.

Glass is very versatile and is popular across a number of packaging sectors, and continued development is making the material even more attractive and useful to brands and their packaging partners. However it is much more straightforward to print on plastics, and as a lightweight alternative to glass it is more cost effective. It is also less fragile than glass.

In the past several years, one of the biggest changes in the packaging market is the competition to attract the swell of millennials, which, by 2020, will account for a third of the adult population (about 83 million). The ripple effect has been a rise in local and craft brands, in nearly every beverage category, functional foods and beverages, and smaller formats, as well as an increased focus on health and sustainability. The ‘millenial’ consumer’s expectations are different to those of previous generations. They are interested in transparency and sustainability.

Plastic bottle packaging

Typical assets we finance include:

  • Wrapping machines
  • Foil wrap machines
  • Filling machines
  • Extruding machines
  • Inspection machines
  • Blister packing machines
  • Labelling machines
  • Coding and marking equipment
  • Shrink wrapping equipment
  • Vacuum packing equipment

Contact your industry specialist

01244 853459

Industrial Equipment

Unit D Telford Court, Chester Gates,
Nr Chester CH1 6LT

Send us an enquiry

Finance products we offer for the packaging industry

  • Hire Purchase
  • Refinancing
  • Finance Lease
  • Operating Lease

Hire Purchase - Spread the cost over time

Hire Purchase enables you to acquire an asset while paying for it in instalments over an agreed timescale – the term. At the end of the term, you have the option to purchase the asset outright.

Hire Purchase lets you spread the cost of your investment over the life of the asset, making it easier to budget. Hire Purchase is particularly suitable for acquiring vehicles, machinery, construction and commercial equipment with a resell value.


Benefits of Hire Purchase

  • More time to repaySpread the cost over the life of the asset
  • SeasonalityWe can structure repayments to take account of seasonal fluctuations in your cash flow
  • Keep controlYou are the owner of the asset for tax purposes and can normally claim capital allowances
  • Tax efficientYou can potentially offset your hire purchase interest and charges against pre-tax profits
  • Potentailly reclaim VAT on the capital cost (there are special rules for cars) 

Refinancing - When you need a cash injection

Refinancing is a quick way to access the value of assets on your existing balance sheet and redeploy that value elsewhere within your business – for example, to fund a deposit on new equipment or unlock some working capital to ease cash flow.

Sale and HP Back is a form of refinance that can be used against most types of equipment, making it suitable for companies of all sizes, including sole traders. It works by us purchasing the asset and financing it back to you. Repayments are calculated in line with the income stream that will be generated by the asset and at the end of the refinance term, you own the asset.

This option applies whether you already own the asset or are using it under a finance deal with another provider.


Benefits of Refinancing

  • EfficiencyUninterrupted use of the asset
  • Spread the cost furtherWe can take over the finance agreement you have with another provider and extend the term
  • ChoiceGive your business a cash injection or use the money to buy other assets that may not be accessible through hire purchase or leasing agreements

Finance Lease - User benefits without the ties of ownership

Our Finance Lease arrangement lets you use the equipment you need without having to buy it outright. You pay us rent for the full use of it. The rental period (the primary lease term) is flexible and can be tailored to your usage needs and cash flow.

During this period, you will pay us the full cost of the asset, including interest.

Then, when you reach the end of the primary lease term you can choose to:

  • continue to use the asset by entering a secondary rental period
  • sell the asset and keep a portion of the income from the sale
  • return it to us


Benefits of Finance Lease

  • Low initial outlayQuick access to the asset you need without a heavy upfront investment
  • FlexibilityRental payments and lease periods can be designed to match your cash flow
  • Cash backReceive most of the income from selling the asset if you choose to do so at the end of the lease
  • Tax efficientRentals can usually be offset against pre-tax profits
  • Reduce costsReclaim VAT on rentals

Operating Lease - Keep your options open

Similar to a Finance Lease, an Operating Lease allows you to rent the asset from us while you need it. The key difference between the two is that an Operating Lease is only for part of the asset’s useful life.

This means you pay a reduced rental because the cost is based on the difference between the asset’s original purchase price and its residual value at the end of the agreement.

You get full use of the asset for as long as you need it, without the burden of responsibility of disposing of it or recouping its residual value.


Benefits of Operating Lease

  • Low initial outlay - Quick access to the asset you need without a heavy upfront investment
  • Freedom - Full use of the asset without having to buy it outright
  • Flexibility - Option to re-rent, purchase or return the asset at the end of the term
  • Pay less - Rental cost is reduced as it is based on a percentage of the original capital cost
  • Off balance sheet funding
  • Reduce costs - Reclaim VAT on rentals





To find out how we can help, please contact us today.