A solid return: Compass celebrates 20 years of backing British manufacturing

Two decades since launch, Compass Business Finance tells Machinery and Manufacturing in an exclusive interview how it helps UK engineering firms thrive — lending not only money, but also expertise and commitment.

When Compass Business Finance opened its doors in 2005, it did so on a simple premise: that clients deserved a more personal, relationship-focused service than traditional financiers could offer.

“We were working elsewhere in the industry, and it was apparent from customer feedback that we could provide better support as an autonomous, independent operator,” recalls Director Mark Nelson, who co-founded the company alongside his brother Jamie and father Bruce. “We wanted to put the customer first, an approach that’s transcended the business ever since.”

Independence was key. Rather than relying on a single credit panel and rigid lending rules, Compass positioned itself as a hybrid lender, able to broker deals from across the market or deploy its own capital when required.

“It meant we could offer a broad spread of finance deals, putting forward only the best offers for each customer.”

Funding the makers, not just the machines

Like many manufacturing businesses it now supports, Compass began life as a family start-up: lean, ambitious and confident it could do things differently.

“I was only 25 years old and knew the market needed a new option,” says Mark. “There was risk, of course, but it was also exciting.”

Those early years were hands-on. Mark and Jamie ran most parts of the business, gaining a holistic understanding of operational requirements. Although Mark’s background is rooted in print and packaging, he always believed those capabilities would translate.

“We didn’t enter the engineering arena from day one because we couldn’t spread our resources too thinly,” he says. “It goes back to ensuring customers have our full attention.”

That shift came as the firm expanded, bringing new people — and new momentum — into the business. The brothers bought out their father in 2017, with David Bunker buying in as a third Director in 2019, a move that proved the driver for diversification into manufacturing.

“Today, we’re established and well connected among the engineering community,” states Mark. “The industry’s requirements are clear and we’re in a strong place to deliver a better finance proposition.”

The personal touch
In a competitive landscape where banks and alternative providers fight for market share, Mark believes Compass stands out for one reason: relationships.

“It’s the personal touch,” he says. “Customers want full engagement. They want you to understand what they’re trying to achieve.”

Specialism also matters. “Not many competitors focus on the manufacturing sector. Most are generalists who only want to write the next deal,” Nelson notes. “In contrast, we’re on board for the whole journey. But we can only do that by walking the path together with our customers as part of a relational, not transactional, approach.”

The philosophy extends internally, with Mark emphasising talent development, shared values and a team built on character as much as capability. At Compass Business Finance, the workforce spans an age range from 18 to 76, including Mark’s father, who remains active within the business, reflecting a culture of continuity and contribution.

Finance that fits
As the finance arena for manufacturing evolves, Mark sees familiar pressures shaping the market: compressed margins, the legacy of CBILs (Coronavirus Business Interruption Loans), inflation, energy costs and geopolitical uncertainty.

“Every business is witnessing challenges. But with tough trading conditions often comes opportunity. Engineers are resourceful. They find solutions.”

While some new lending models are emerging, he is cautious about the rise of unsecured loan products: “I’m not a huge fan. Asset finance remains the most applicable facility for new investment. You should be securing risk based on assets, not personal guarantees.”

Finance education, Mark believes, is critical, particularly for start-up manufacturers.

“Some are unaware of the breadth of finance options available. At Compass, we usually provide at least three options, talking through each to ensure the customer fully understands their choices.”

Compass Business Finance looks to provide options for the borrower’s benefit rather than its own, as the following example outlines.

“Finance companies often like to stretch the funding term because the longer the term, the more the lender earns in interest,” he explains. “We think the customer should take the shortest term they can achieve without exerting undue pressure on themselves, simply because they’ll save significantly in interest payments and free-up cash flow sooner.”

Government-backed initiatives also have a pivotal role.

“We have a really strong, long-standing relationship with the British Business Bank,” notes Mark. “The Growth Guarantee Scheme is a great tool that allows us to provide funding that may otherwise prove challenging.”

Engineering the next decade
Serving as a hybrid lender and broker, Compass currently provides more than £100 million of finance annually, with ongoing ambitions for steady growth. New divisions, including a broker-to-lender channel, are already underpinning that trajectory, alongside plenty of in-house investments.

“We’re pretty tech-progressive for a small business,” says Mark. “In recent years, we’ve implemented a bespoke customer relationship management [CRM] system that rolls into our proposal management system. We also use cloud-native, API-first asset finance technology that facilitates seamless workflow in which data entered in one system automatically updates across other platforms, eliminating the need for repeat manual entries. We’re now looking at AI and how it can best support us moving forward.”

Knowledge is power

Asked what advice he would offer a young engineering entrepreneur today; Mark is characteristically practical: “Take the time to understand your finance options. Don’t be told what to do; gather information and make the best decision for your business.”

Exhibitions remain central to that ethos of visibility and conversation. This year, Compass will once again be prominent at MACH 2026 (NEC Birmingham, 20-24 April). Available to talk about imminent or future investments from Stand 44 in Hall 6, visitors can see for themselves why the business is witnessing vibrant growth in the manufacturing market some 20 years after its inception. And yes, it was quite a celebration.

“We had a big office party in December to let our hair down and reflect on our achievements over the past two decades,” reveals Mark. “Catering, cocktails — the party went on into the early hours. Everyone enjoyed it. Or at least that was my deduction from the state of the office the next morning!”