Start by confirming whether you are dealing with the finance provider itself or a broker that introduces applications to providers. Then compare the proposed valuation, amount, term, total cost, payment schedule, security and what happens if the company cannot maintain the agreement. A rating or “best company” label is not a substitute for written terms.
Provider or broker?
A finance provider supplies the facility and sets its credit and asset criteria. A broker can review the requirement and approach one or more providers. Ask which role the business is performing, which legal entity you are dealing with and how it is paid. If a fee or commission applies, ask for a clear explanation before proceeding.
Check your options
Check asset-refinance routes before choosing a provider
Tell us about the assets, the amount you want to release and when you need it. A business-finance specialist will review your enquiry and contact you to discuss the routes that may fit.
Finance is subject to assessment, provider approval and terms.Check the business behind the name
Check the company name and number at Companies House. Where a regulated activity or permission is relevant, use the FCA Register and confirm the legal entity, trading name, activity and contact details shown. A company appearing in a search result or directory is not, by itself, evidence that it has a particular permission or will accept the transaction.
Compare the asset assessment
Asset-refinance availability usually depends on the asset, ownership, condition, age, location, existing finance and saleability as well as the company's wider position. Ask who values the asset, whether a valuation fee applies and whether the proposed amount is based on market value, forced-sale value or another measure.
- Confirm that the company owns the asset and identify any existing finance or charge.
- Check which assets are included and whether additional security is requested.
- Ask how the asset value affects the possible advance and later agreement terms.
- Understand inspection, documentation, valuation and completion requirements.
Compare the complete written cost
Look beyond a headline rate. Compare the amount advanced, deposit or retained amount, interest or other finance charge, arrangement fee, valuation and documentation costs, payment frequency, total repayable and early-settlement terms. Ask whether any figure can change and what causes that change.
Understand the downside
Asset refinance uses business assets as part of the finance arrangement. If the company cannot keep to the agreement, the asset may be at risk and the disruption can affect operations. Check default terms, personal guarantees, other security and the practical effect of losing access to the asset. Obtain independent professional advice where needed.
Prepare a useful enquiry
It helps to provide the asset type, make or model, age, ownership position, estimated value, existing finance balance, requested amount and intended use of funds. Accounts, bank statements and further company information may also be requested. Providing information does not mean finance will be approved.
For the wider structure and risks, read the asset-refinance guide.