Business Asset Refinancing

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What is business asset refinancing?

Business asset refinancing is a secured form of lending used to raise funds against an existing asset purchased by a business in full, or sometimes on existing equity on an asset only partially purchased.

  • Refinance asset
  • Receive loan
  • Repay financing agreement

Why choose business asset refinancing?

Usually, financing is only available on new assets and purchases, but business asset refinancing gives a solution for businesses that wish to receive a loan using existing assets. It is typically a fast and efficient result and one that is suitable for companies of all size, including sole traders.

Which industries can benefit?

Business asset refinancing can benefit any business that requires a quick cash release and holds one or more sizable assets such as machinery, vehicles or equipment. Industries that could benefit include:

  • Construction
  • Manufacturing
  • Transportation
  • Engineering
  • Healthcare
  • Professional services
  • Printing
  • Plant Hire

What assets can be used?

Typically, business asset refinancing is used against machinery, vehicles and equipment, but almost any sizable asset can be considered if you are looking to gain working capital finance. Refinancing can be used on one or multiple assets, depending on the funds that the business needs to gain. The finance provider will ascertain the asset value, which will depend on various factors.

Construction
Construction vehicles, vehicle maintenance equipment, construction technology & software

Manufacturing
Manufacturing machinery, support equipment such as cranes and robotics, technical equipment

Transport
Vehicles (road, rail, water or air), containers and storage, tracking technologies and equipment

Engineering
Vehicles, engineering machinery, technologies and office equipment

Healthcare
Office and technical equipment, vehicles, medical equipment

What will the lender need to know?

Various factors will be considered by the finance provider when deciding the asset value, the kinds of information you can expect to provide about the asset are:

  • Year of manufacture
  • Year of purchase
  • Usage / mileage / condition
  • Proof of purchase

Can small businesses benefit too?

Business asset refinancing can benefit absolutely any business, small or large, with one or more sizable assets. It is a fast and efficient solution to gain capital against an existing asset.

Pros and Cons

  • Fast and efficient solution
  • Suitable for a wide range of equipment
  • Capital can be reinvested into business maximising potential and income to make repayments easier
  • Interest is added to repayments
  • You are responsible for maintaining and repairing the asset, usually the asset will need insurance
  • The asset is used as collateral, so will be removed from your possession if you are unable to make repayments

How can new funds released from business asset refinancing benefit my business?

The capital released from refinancing an asset could be used in a number of ways to elevate your business. Many businesses use asset refinancing as a solution to raise funds required for a new asset or new stock, thus reinvesting in the business and maximising potential. Often a businesses premises requires a refurbishment to help improve daily operations, another way to reinvest your capital. The loan could also simply be used to boost cash flow.

Your business

If your business is poor in cash flow and rich in business assets, this type of loan is most suitable for you. Business asset refinancing can help maximise your business potential and release valuable capital for new assets and stock needed to take your business to the next level sustainably.

What does secured loan mean?

The term secured loan means that the asset is used to secure the finance. The asset is used as collateral against the agreement. So should the business become unable to meet the agreed instalments, although a lot of lenders do take a flexible approach and try to accommodate the business where possible, if no solution can be met the asset may be removed from the businesses' possession.

OR Request a callback. We can help you secure assets from £7.5k up to £500k.

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