Asset Finance & Refinance
Asset finance and refinance can be essential for the growth of a business.
Asset finance allows a business to purchase a large asset, without the big upfront cost. Typically, a business will pay a percentage towards the deal (normally the VAT element), and the rest is done over an agreed period as HP or a lease.
Hard assets are things like plant and machinery, cars etc and will have a long-term value. Soft assets tend to be things like IT equipment, phones, and other equipment with lower resale values. Hard and soft assets can be financed, but some companies specialise in one product or the other.
Asset refinancing is simply where you raise cash against a hard asset which you own outright. You sell the asset to a company who take ownership but allow you to carry on using the asset. You then repay them over an agreed period.
This process can help you unlock the value tied up in your assets, providing you with cash flow or working capital for various needs.
Get in touch today to find out more about asset finance and refinance.
| Feature | Asset Finance | Asset Refinance |
|---|---|---|
| Purpose | Acquire new or used equipment, vehicles, or machinery without paying in full upfront. | Release capital tied up in assets your business already owns or has equity in. |
| Best for | Growth, upgrades, replacing end-of-life kit, taking on new contracts. | Improving cashflow, consolidating borrowing, bridging seasonal gaps. |
| Ownership during term | Lender has a security interest; you use the asset in the business. | Lender takes security over the existing asset; you continue using it. |
| Deposit | Often low; sometimes none, subject to circumstances. | Not applicable; funding is based on the asset’s value/equity. |
| Monthly payments | Fixed repayments over the agreed term. | Fixed repayments based on the refinanced amount. |
| Typical term | 1–7 years (asset and lender dependent). | 1–5 years (asset value and lender dependent). |
| Approval speed | Often 24–48 hours once documents are supplied. | Often 24–48 hours once valuation/docs are supplied. |
| Flexibility | Options like balloon or seasonal payments may be available. | Can restructure existing commitments and smooth cashflow. |
| End of term | Own, return, or refinance depending on agreement type. | Asset remains with the business once fully repaid. |
| Good to know | Preserves working capital for other priorities. | Unlocks funds without selling key equipment. |
Asset Finance and Asset Refinance - Frequently Asked Questions
When it comes to funding equipment or releasing capital tied up in existing assets, every business is different. These FAQs cover the key points around asset finance and asset refinance, so you can understand how each option works and which might be right for your situation.
What is asset finance?
Asset finance helps businesses acquire equipment, vehicles or machinery without paying the full cost upfront. The asset is paid for over an agreed term, helping you spread the cost and protect cashflow.
What is asset refinance?
Asset refinance allows you to release capital tied up in equipment or vehicles you already own. The lender uses the asset as security and provides funding based on its value. It’s commonly used to improve cashflow or consolidate borrowing.
What types of assets can be financed?
Most business-critical equipment can be financed, including vehicles, plant and construction equipment, agricultural machinery, IT systems, catering and hospitality equipment, medical equipment, manufacturing machinery and more.
Can I refinance assets my business already owns?
Yes. If your business owns equipment outright or has significant equity remaining in an existing finance agreement, it may be eligible for refinancing. This can help unlock working capital or restructure debt.
How quickly can asset finance be approved?
Approvals are often made in 24–48 hours, depending on the asset type, value and documentation. We handle the application process for you and work with specialist lenders to keep things moving quickly.
Is a deposit required for asset finance?
Not always. Some agreements require a small upfront payment, while others begin with minimal or no deposit. It depends on your business circumstances and the asset involved. We’ll advise what’s most suitable.
Can asset finance help with business cashflow?
Yes. Asset finance spreads the cost of equipment over time, while asset refinance releases funds tied up in existing assets. Both can support cashflow, especially during growth, seasonal peaks, or when taking on new contracts.
Does asset refinance affect ownership of the asset?
You continue to use the asset as normal. The lender takes a security interest over it during the finance term, and full ownership returns to the business once the agreement is repaid.
Do you work with specific industries?
Yes. We regularly support businesses in construction, manufacturing, agriculture, logistics, engineering, hospitality, printing, professional services and more. If your business relies on equipment, we can usually help.
How do I get started?
A short conversation is usually all we need to understand what asset(s) your business needs to finance or refinance. We’ll then compare options from specialist lenders and provide recommendations tailored to your circumstances.
Do you have any examples of Asset Finance and Asset Refinance?
Yes – find out how one business saved £90k a year in this case study.
What is the interest rate for Asset Finance?
Asset finance rates can range from 5% to 15% as a flat rate. The main factors influencing this can include the amount borrowed, asset being financed and the strength of the borrower. Borrowers who have financial difficulties and are classed as higher risk, could be charged a higher rate.
Do you need good credit for Asset Finance?
Having good credit (business and personal) helps you to get better rates for asset finance. However, there are some lenders who specialize in supporting borrowers with poor credit.
What is the Asset Finance process?
A finance company will require details of the asset being purchased (cost, make model, serial number etc.). Once a facility has been approved, client then pays the deposit element to the finance company, who will then pay the full amount to the asset supplier. Asset is then delivered as normal. Once the facility has been paid in full, ownership of the asset is transferred to client.
What if my company is not very strong for asset finance?
Asset finance can still be accessed. There are specialist lenders who work with companies who may be distressed, or just have a weaker balance sheet.
What are the costs of asset finance?
Aside from paying interest, a lender will generally require some kind of deposit to be paid. Normally, this is the VAT element (or equivalent amount if there is no VAT on the asset), or possibly slightly higher.
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