Support Articles

Asset refinancing – could you benefit?

09 Apr 2021

How does it work?

The easiest way to explain asset refinancing is you sell your asset to an asset finance provider and then lease it back from the provider in return for fixed payments - your business benefits from an improved cash flow to take advantage of new growth opportunities.

What assets can you refinance?

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.

In some circumstances 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. 

Is refinancing right for my business?

Asset refinancing may be a suitable option if your business is asset-rich but cash-poor. Asset refinance would also be worth considering if you want a cash injection to boost working capital, or to cover an unexpected cash shortfall. It provides an alternative line of credit without affecting existing bank financing and does not rely on your credit rating or business performance.

A couple of things to think about

Does refinancing your assets seems like it could be a good option for you and your business? At Custom Business Finance, we’re here to help you make the right decision and support you through the process.

Before you decide to proceed, here are our top 3 things to think about:

  1. What sort of asset are you thinking about refinancing?
  2. What do you plan to use the money on that is released by refinancing an asset? 
  3. What are your ideal terms of refinancing? 

Once you’ve had a think, we’d love to hear from you!

“There are many ways to restructure or refinance and Custom Business Finance will find you the solution that fits your business. Visit our website below and contact us to discuss or telephone us on 0114 442 8008” Chris Mangle, Executive Director
0114 442 8008