WHAT IS ASSET REFINANCE?

The balance sheets of many businesses show a considerable amount of capital locked up in physical assets. By taking advantage of asset refinance, this capital can often be released, while the business retains full use of the asset.

Asset refinancing uses the equity that the business holds in its existing assets to raise working capital for alternative purposes. There are many reasons why you might want to access this capital, including:

  • Funding a new contract or project
  • Taking advantage of business expansion opportunities
  • Investing in other business assets (which might be harder to finance)
  • Easing cash-flow concerns when unforeseen expenses arise
  • Funding management buy-outs
  • Consolidating other debts such as business loans or overdraft facilities

ACCESS WORKING CAPITAL QUICKLY AND EASILY

Perhaps the best aspects of asset refinance are that it can often be arranged very quickly, sometimes in a matter of days, and that because the finance is secured against the asset, the criteria for lending are often less stringent than for other forms of finance. This means that even if the business’ credit history is not perfect, it may be quite straightforward to raise the required capital.

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REFINANCE A WIDE RANGE OF BUSINESS ASSETS

Different types of business have different types of physical assets and it’s possible to raise finance against most asset classes. These include:

  • Machinery and plant
  • Commercial vehicles
  • Cars (usually known as Sale and Leaseback)
  • Other business equipment

Find out how Asset Refinance can help your organisation

ASSETS WITH EXISTING FINANCE CAN ALSO BE CONSIDERED

If an asset has existing finance, it is still possible to refinance it as long as the business has equity in it. For example, if a business owns a piece of machinery with a current value of £100k, and has existing finance of £20k against it, it will still be possible to arrange refinance based on the £80k equity which it holds.

In some cases it’s also possible to refinance the existing debt, which can reduce monthly payments by spreading the agreement over a longer term, and sometimes at a more competitive interest rate.

VARIOUS REFINANCE TYPES ARE AVAILABLE

asset refinance equipment

Refinancing packages can take a number of different forms, depending on the needs of the business. Perhaps the best known, and often used for vehicle fleets, is Sale and Leaseback. As the name suggests, this is where the funder purchases the vehicles and leases them back to the organisation, often under a Contract Hire or Finance Lease agreement.

There are, however, other options that allow the business to take ownership of the asset at the end of the finance agreement, such as Lease Purchase and Hire Purchase.

Find out how Asset Refinance can help your organisation

WHY MAXXIA?

Maxxia takes a highly flexible approach to asset finance and refinance that’s based on the unique circumstances of our clients. This is backed by our highly experienced team, that have years of experience working with businesses across a wide variety of industries.

As well as providing funding ourselves, we also have access to the widest portfolio of business finance providers, so we’ll always deliver the best possible deal for your specific needs.

Talk With Our Business Asset Finance Experts

Contact our team today for an impartial discussion about your asset refinance options.