Definition of Refinancing
“Refinancing is a way of raising cash against assets that a business already owns. A finance provider will value the asset, and advance a sum of money that is secured against it, and can be repaid in monthly payments.”
Refinancing existing assets
If you need capital, for any business purpose, and you have assets within your company, whether those assets are machinery, equipment, vehicles or other high- value items, we can find refinancing solutions to provide the boost that you need. Refinancing provides flexible asset finance secured against high-value items, which can be repaid in manageable instalments.
It’s not unusual for companies to invest in costly equipment when times are good, but then find themselves cash poor if trade hits a lull. If that scenario sounds familiar, then refinancing your assets could free up the funds you need, for whatever you need them for, from a big marketing drive to specialist staff training.
Refinancing offers the best of both worlds, as opposed to selling off assets, because you can still use the asset in question at the same time, as capitalising on a cash injection straight into your business.
Lending based on the value of your assets not your financial past
As the finance is secured against an asset, lenders are often more interested in the credentials of the item that you are refinancing than your financial past, so this is a good option if you, or your business, has had problems obtaining credit in the past. Our experienced team will assess the of the item that you wish to borrow against to determine its value to try and find the most suitable lender and product.. Original copies of paperwork and certification will be very useful in assessing the true value of your assets, and in some cases the lender may arrange an independent valuation.
Refinancing against assets you already own is a simple, straightforward way to free up cash within your business. Repayments will be made on a monthly basis in affordable instalments, and as long as you stick to the payment schedule you will retain use of your asset while still enjoying the extra capital.
Think carefully before refinancing assets as your loan will be secured against the asset. Failure to keep up repayments may have a detrimental effect on your credit standing and could put your asset at risk.
Refinancing is perfect for any business that is short on cash but has high-value assets. Some of the solutions we have provided include:
- Refinancing of plant machinery
- Refinancing of fleet vehicles