Asset refinance uses value in eligible business assets to support a new finance agreement. The company can normally continue using the asset while making the agreed payments. The amount depends on the asset, valuation, condition, useful life, ownership and any finance already secured on it.
How asset refinance generally works
- Identify assets the company owns outright or has meaningful equity in.
- Provide ownership, existing-finance and asset information.
- A provider decides whether the asset is suitable and arranges a valuation.
- Existing finance may be settled as part of the new agreement.
- Any agreed net amount is released and the company makes payments under the new terms.
Legal ownership and agreement structures vary. Do not assume the company remains the legal owner throughout simply because it keeps physical use of the asset.
Check your options
Check ways to release value from business assets
Tell us which assets the company owns, how much cash 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.Which assets may be considered?
| Asset type | Evidence a provider may examine | Main practical risk |
|---|---|---|
| Commercial vehicles and fleets | Registration, mileage, condition, use and existing finance | Loss of an operational vehicle after payment default |
| Plant and machinery | Make, model, age, maintenance, location and resale market | Production or site disruption if the asset is recovered |
| Specialist equipment | Valuation, remaining useful life and availability of buyers | A lower finance value than its value inside your operation |
| Assets under existing finance | Settlement figure, equity and consent or replacement structure | Little or no net cash after settling the current agreement |
Not every asset has a sufficiently clear title, value or resale market. Property, receivables, stock and intangible assets may use different specialist structures and should not be assumed to fit a standard equipment-refinance route.
Work out the net cash, not just the valuation
What should you compare?
- The valuation method and amount available against the asset.
- The current settlement figure and net cash the company receives.
- The term, payment schedule, total cost and all fees.
- Ownership, maintenance, insurance and inspection obligations.
- Personal guarantees, cross-security or a wider debenture.
- Early-settlement terms and what happens after missed payments.
- The operational cost of losing the asset after default.
Asset refinance or another working-capital route?
Asset refinance may fit an asset-rich company with a defined use for the cash and sufficient repayment capacity. If the need comes from unpaid B2B invoices, invoice finance may be more directly connected. If no suitable asset exists, compare broader working-capital finance. Do not secure a business-critical asset merely to postpone a recurring deficit.
What should you prepare?
Useful information can include invoices or purchase records, serial and registration numbers, photographs, maintenance history, current-finance statements, settlement figures, accounts, bank statements and the proposed use of funds. We can review the enquiry, but suitability, valuation and terms depend on the provider.
Frequently asked questions
Can a business refinance an asset it does not own outright?
Potentially, if there is sufficient equity and the existing agreement can be settled or replaced. The current lender, settlement figure and new provider's terms matter.
Can the company keep using the asset?
Normally that is the purpose, but use, ownership, maintenance and insurance are governed by the agreement. Missed payments can put the asset at risk.
How much cash can asset refinance release?
It depends on valuation, asset type, condition, useful life, existing finance and the provider's assessment. Compare the net amount after settlement and fees.