Asset finance · Asset refinance
Asset refinance — release the cash tied up in kit you already own
Turn the value sitting in your vehicles, plant and machinery into working capital, and carry on using it exactly as before.
In short
There is capital sitting in your yard
If you own equipment outright, or you are most of the way through paying for it, there is capital in your yard doing nothing. Asset refinance releases it. The funder takes an interest in the asset, pays you a lump sum, and you repay over an agreed term.
Nothing changes operationally. The excavator stays on site, the lorry keeps running, the machine keeps producing. The only difference is money in your account and a monthly payment going out of it.
Asset refinance — key terms
REF RF- Typical term
- 12 to 60 months
- Initial outlay
- None — you receive a lump sum instead
- VAT treatment
- On the rentals or the finance charge, depending on the structure
- End of agreement
- Title reverts to you once the agreement is settled
- Balance sheet
- The asset stays with you; a liability is added alongside it
Funders lend against identifiable, serial-numbered assets with an established resale market. Advances are based on current trade value, not on what you originally paid.
Best suited to
When asset refinance is the right call
- Funding a VAT or corporation tax bill without touching the overdraft
- Bridging the gap on a large contract before the first invoice lands
- Buying stock or materials at a worthwhile discount
- Restructuring finance that is costing more than it should
The detail
What funders will lend against
Refinance works best on assets that are identifiable, serial-numbered and have a real second-hand market — commercial vehicles, tracked and wheeled plant, agricultural machinery, machine tools, trailers. If it has a plate with a number on it and someone would buy it at auction, it is usually fundable.
How much you raise depends on the asset’s age, hours or mileage, and current trade value rather than what you paid for it. We give you a realistic figure before you build a plan around it, and we tell you plainly when the numbers do not work.
- No deposit — you receive a lump sum rather than paying one
- Keep using the asset throughout the agreement
- Works on part-paid assets where there is equity to release
- Terms of 12 to 60 months
- Realistic figures up front, based on trade value not purchase price
Common questions
Questions we get asked
Often, yes. If there is equity in the asset — it is worth more than the settlement figure on the existing agreement — a funder can settle that agreement and advance the difference to you. We get the settlement figure first and work out whether it is worth doing before anything is committed.
Yes, throughout. Refinance is a funding arrangement, not a sale of equipment out of your yard. It stays where it is and keeps earning. The only change is that the funder holds an interest in it until the agreement is settled.
It is driven by current trade value rather than purchase price, and typically lands below that figure to leave the funder some headroom. Age, condition, hours and how readily the asset would resell all move the number. Send us the make, model, year and serial number and we will come back with a realistic range.
Where to next
Related to this
Next step
Talk asset refinance through with someone who does it daily
Send the make, model and price and we will come back with indicative terms — usually the same working day.