When we think of the benefits of asset finance, we know that obtaining finance to buy new vehicles, machinery or equipment leaves you more money in your business and more control over cash flow.
However, another option for generating cash is asset refinance. This allows a person or business to raise cash against assets they already own unencumbered. As with asset finance, manageable monthly payments are agreed over a fixed term. Refinance is available against all wheeled and tracked assets.
An important point to note is that refinance is only available on assets that you or your company own outright i.e. Assets that are not currently financed.
In easy terms:
How Does Asset Refinancing Work?
- Release equity from vehicles, plant or machinery
- Finance company take security in the equipment
- Advance is paid directly to you to utilise
- Written on a Hire Purchase agreement, so you take back ownership of the equipment at the end of the term
- It can also be used to restructure debt within the business
What Are The Benefits Of Asset Refinancing?
- Provides working capital
- Can be used to raise capital to invest in intangibles in the business
- Improve company facilities
- Could use the capital raise as a deposit on more machinery
- Invest in growth
- Your use of the asset is unrestricted
How Does Your Business Qualify?
- Suitable rationale for cash
- LTV (Loan-to-Value) against the assets is suitable
- Have opportunity for expansion
We have been helping a lot of businesses recently with this product to enable them to release cash flow into their business when they really need it.
If you would like to discuss how this product may help you or your business then please give us a call on 01603 381955 or contact one of our friendly advisers .