Supporting toolmakers and component manufacturers with the tooling needed to complete new and confirmed projects.

Investment available : up to £2 million

Transaction type : Tooling

Location : Within England

Sector : Any, not just automotive

The National Tooling Loan Fund supports component manufacturers and toolmakers to design, develop and manufacture tooling for their new and confirmed projects. It is a revolving fund open to eligible manufacturing businesses working in any sector, with investment available up to £2 million.

Key features:

  • Investments designed to support toolmakers and component manufacturers.
  • Supporting the creation of new jobs and safeguarding existing workforces.
  • Available finance of between £50,000 and £2 million.
  • Funds to contribute towards the design, development and creation of tooling or expanding tooling capacity.


  • A firm order for tooling is needed, that originates from an Original Equipment Manufacturer (OEM), a tier 1 supplier or from further along the supply chain, with repayment due upon satisfactory completion of tooling.
  • Terms and fees will apply. The cost of borrowing (interest rate) will be at a commercial rate of 7.5% over the prevailing base rate and an arrangement fee of 2%.
  • Difficulty securing the required level of investment from existing finance providers.
  • Security may be required in the form of a debenture postponed to existing finance providers.
  • Final manufacture of the tooling and subsequent component production must be in England.
  • New jobs need to be created and/or safeguarded in England, as a result of funding.
  • Evidence of 2 years trading track record and proven ability to complete similar projects previously.

Download our SME Debt Funding pack for more information:

Contact an Investment Director:

Need to discuss a tooling loan?
Call 0345 319 4528