Asset refinance can be used to release the cash that is tied up in plant and machinery. This can provide a business with a much needed cash injection to use as working capital.
At Funding Solutions we are experienced in advising on cash flow solutions and refinance is one of our areas of expertise. If you are considering refinancing any vehicles or plant and machinery contact us today on 0845 251 4040.
What is asset refinance?
Asset refinance is the financing of existing assets within a business. Typically we can provide 80% of the value of your assets and this can be used for any purpose.
Why should I consider this for my business?
Typically asset refinance is done as a fund raising exercise to raise additional finance for the business. However, some businesses also refinance existing asset finance agreements to reduce the monthly repayments.
What assets can you refinance?
When looking at asset refinance the quality of the assets are key. Lenders look at quality, durable assets with a good second hand market that are easy to identify. Assets that are suitable include vehicles, printing presses, earth moving plant, engineering equipment and any other asset that has a good value and could be sold on if necessary.
Features of asset refinance
- Asset refinance can generate a cash injection into your business.
- This can help with your short term cash requirements but it is important to remember it will also attract a monthly repayment that must be met.
- If you are using asset refinance to reduce the monthly repayments on an existing finance agreement this will provide obvious cash flow benefits on a monthly basis.
- The length of any finance agreement should not exceed the life of the asset. After all, you do not want to be making payments against equipment that is no longer generating income for your business.
- The rates available for refinancing are typically higher than what you might pay on new equipment as the risk is considered to be higher. That said it can remain a cost effective cash flow solution.
How do I refinance assets?
At Funding Solutions we have a wealth of experience in sourcing suitable finance for businesses. Contact us to discuss your requirement today and we can talk through your options.
If asset refinance is the right solution for your business we will require the following information:
- The full specification of the asset including year of manufacture, mileage or useage and registration number or serial number.
- Your last year end accounts
- The last 3 months bank statements.
Asset Refinance is only one of many solutions available to help your business survive and thrive – in the first instance ‘let’s talk’ and see which solution might suit you best. For independent best-practice advice call 0845 251 4040 or email: