The Role of Industrial Ovens in Plastics Manufacturing

Plastics production relies heavily on accurate thermal control. Industrial ovens are used to
preheat materials evenly, ensuring plastic sheets reach the correct forming temperature before
shaping.

Common applications include:

• Thermoforming plastic sheets before moulding
• Preheating materials for injection or compression processes
• Drying plastics to remove moisture prior to forming
• Post-forming heat treatment to improve dimensional stability
• Processing specialist or high-performance polymers

Consistent oven performance helps reduce waste, improve cycle times, and maintain uniform product
quality across large production volumes.

What Is Asset Finance?

Asset finance allows a business to acquire new equipment through structured funding rather than
paying the full purchase price upfront. It enables manufacturers to replace ageing machinery,
expand production capacity, or invest in modern technology without tying up working capital.

Typically, the asset itself is used as security for the finance, reducing the need for additional
collateral. This makes asset finance a popular option for funding high-value machinery such as
industrial ovens and thermoforming systems.

Asset finance is a versatile solution and can be used to fund a wide range of equipment, from
manufacturing plant and machinery to vehicles and IT systems.

Why Plastics Manufacturers Use Asset Finance

Purchasing industrial ovens outright can place significant pressure on cash reserves, particularly
for growing plastics manufacturers or businesses investing in new product lines.

Asset finance allows manufacturers to:

• Avoid large upfront capital expenditure
• Spread costs into manageable monthly payments
• Preserve working capital for materials, labour, and operations
• Upgrade production capability without delaying investment
• Align repayments with revenue generated by the equipment

Common Asset Finance Options for the Plastics Industry

Hire Purchase (HP)

Hire Purchase allows a plastics manufacturer to acquire an industrial oven by paying a deposit
followed by fixed monthly instalments. Ownership of the equipment transfers to the business once
all payments are completed.

Best for: Businesses seeking long-term ownership of production equipment.

Finance Lease

With a finance lease, the finance provider purchases the oven and leases it to the business.
Monthly payments cover the asset cost and interest, while the business is responsible for
insurance and maintenance.

At the end of the term, options may include continuing the lease, returning the equipment, or
arranging a sale on behalf of the lender.

Best for: Flexibility without immediate ownership.

Operating Lease

An operating lease allows businesses to rent equipment for a fixed period. Maintenance is often
included, and there may be opportunities to upgrade to newer technology at the end of the term.

Best for: Temporary requirements or fast-evolving production environments.

Contract Hire

Contract hire is most commonly used for vehicles, but where applicable, it provides a fully
managed solution. The provider sources, maintains, and manages the asset while the business pays
a regular usage fee.

Business Contract Purchase (BCP)

Business Contract Purchase works similarly to hire purchase but with lower monthly payments,
as only interest is paid during the term. A larger final balloon payment is required to own the
asset.

Best for: Businesses prioritising lower monthly outgoings.

Asset Refinancing / Capital Release

Asset refinancing allows plastics manufacturers to release cash from equipment they already own.
Existing ovens or machinery are used as security to raise working capital without selling assets.

Benefits of Asset Finance

• Small or zero upfront costs
• Improved cash flow through spread payments
• Predictable monthly repayments
• No need for additional collateral in many cases
• Potentially lower cost than other finance options

Risks and Considerations

While asset finance offers many advantages, businesses should also consider potential risks:

• Ownership remains with the finance provider until payments are complete
• Usage restrictions may apply under lease agreements
• Liability for damage beyond agreed terms
• Long-term commitment depending on agreement length
• Risk of repossession if repayments are not maintained

Asset Finance vs Asset Refinancing

Asset finance helps businesses acquire new equipment without a large upfront payment.
Asset refinancing, by contrast, allows businesses to unlock the value of assets they already own
by using them as collateral for a loan.

Both options can support growth, but they serve different purposes depending on whether new
equipment is required or working capital needs to be released.

Is Your Plastics Business Eligible?

Asset finance may be available to a wide range of businesses, including sole traders,
partnerships, limited companies, and start-ups, subject to affordability and lender criteria.

Given the variety of lenders and finance structures available, identifying the most suitable
option can be time-consuming. Independent, specialist advice can help ensure finance is structured
around your production requirements, cash flow, and long-term objectives.

Finance enabled: Industrial ovens are fundamental to plastics manufacturing

Industrial ovens are fundamental to plastics manufacturing, particularly in thermoforming and
preheating processes that drive efficiency and product consistency. While the investment can be
significant, asset finance provides a flexible, structured route to acquiring this essential
equipment.

With the right asset finance solution in place, plastics manufacturers can modernise production,
scale operations, and remain competitive while maintaining financial stability.