Asset Refinance

Asset Refinance

Refinancing (Capital Release) is a quick way to access the value of assets on your existing balance sheet and use that value elsewhere within your business – for example, to fund a deposit on new equipment or ease cash flow.

Sale and HP Back is a form of refinance that can be used against most types of equipment, making it suitable for companies of all sizes, including sole traders. It works by us purchasing the asset and financing it back to you. Repayments are calculated in line with the income stream that will be generated by the asset and at the end of the refinance term, you own the asset.

This option applies whether you already own the asset or are using it under a finance deal with another provider.

How refinancing works?

Asset refinancing is usually only available on assets, such as equipment, plant and machinery and vehicles, that the business owns in full and not those that are currently subject to any existing or outstanding financing arrangements. However, it may be possible, subject to certain provisions, to borrow against the existing equity within an asset even if the financing is not yet paid off in full. It’s always best to discuss the opportunities that are available with your funder. As with conventional asset finance, once a business asset is refinanced, the business makes agreed monthly payments over the contracted period until the sum, plus any interest, is repaid. From a lender’s perspective, asset refinance solutions use existing assets as security. Because the finance is secured against a physical asset, the lender has the reassurance that if things go wrong and the business can’t keep up with repayments, they can take the asset to recoup their losses. This lowered risk gives the lender more confidence in lending to the business, and often means they won’t require a personal guarantee or a deeper look into the business’s credit history.

What information will any funder require about the asset?

One of the key differences with asset refinancing is that the business will typically have to provide the lender with detailed information about the asset that is being refinanced, especially proof of ownership and current usage so that it can be accurately valued. Information required will include: • Make and model of the asset • Year of manufacture • Year of purchase • Usage in terms of hours or miles • Proof of purchase

Refinancing can release capital against the following assets:

  • Cars
  • Commercial Vehicles
  • Construction Equipment
  • Demolition Equipment
  • Engineering Equipment

What are the benefits of refinancing your assets?

Efficiency – Uninterrupted use of the asset.

Choice– Give your business a cash injection or use the money to buy other assets that may not be accessible through hire purchase or leasing agreements.

Make fast decisions– Releasing capital can help you make faster decisions when negotiating business contracts.

It provides security – we bring the best terms in a seamless, hassle free process, and can continue to offer construction equipment funding solutions as your business develops and grows.

From a lender’s perspective, asset refinance provides additional security against the value of the loan and make them more likely to provide funds. With years of experience supporting businesses across the UK, Anglo Scottish Asset Finance provides a dedicated business finance service to its customers, whatever sector they specialise in, with asset refinancing just one of many business finance options. Our business finance managers have years of experience, enabling them to make the right recommendations and you to get the most from your business finance or refinance solution. Want to find out more about your asset refinance options? Then get in touch with Anglo Scottish Asset Finance today.

Contact Asset Funder to arrange your refinancing today

If you need help getting refinance for your assets, get in touch today. Alternatively, if you’d like to learn more about our services, we’d be happy to tell you more. We’re always willing to explain our finance solutions to you, so you can make a choice that is fully informed. Get the funding for your business needs by calling us on 0800 999 69 62 or emailing us. Alternatively, if you'd like to get your refinance approved today just click on the link below.

Get Your Asset Refinance Approved Today

Testimonial - Eminence Logistics

“I have been with Lee and his team from the start of my business venture and they have provided an extremely fast and efficient service and their knowledge and advice is excellent.

I trust them totally with decision making and value our relationship of honesty and trust”

Colin Burman – Eminence Logistics