Asset Refinance 2018-06-15T10:47:23+00:00

Asset Refinance

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What is an Asset Refinance?

Asset refinance is a method of releasing money from the items on your balance sheet, allowing you to use the funds elsewhere in your business.

Owners can use asset refinancing as a method of raising capital for their company. It can be used to raise working capital, cover and funding shortfall, or to free up cash for new purchases.

Refinancing assets is simple and can even be used on equipment or machinery that already has finance outstanding on it. The key to raising funds through an asset refinance is the amount of equity available.

Asset refinance will usually allow you to release a set percentage of the item’s value. The exact percentage will depend on what equipment you’re looking to refinance and its age.

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The Advantages & Disadvantages

Are you looking to refinance an asset to free up capital for other areas of your business? Here are the pros and cons of using asset refinancing.

Advantages

  • Asset refinancing allows you to raise money for your business while still enjoying use of the asset.
  • Asset refinance can be an excellent option for companies who do not qualify for unsecured business loans.
  • Provides a cash injection, which can be used to benefit your business.
  • Repayments are usually fixed, meaning you know exactly what you’ll have to pay each month.

Disadvantages

  • You will no longer own the asset (until the end of the term).
  • You will have to make monthly payments in order to continue using the item.

How Does It Work?

Once you’ve decided to raise finance for your asset, we will scour the market for you to secure the best possible terms for your business. Once you’re satisfied, the sale will be agreed to the finance company, who will immediately lease back the item to you.

The finance agreement will usually consist of a five year term, although this can be agreed individually depending on your needs.

At the end of the agreed term, ownership of the item will revert back to your business.

Is an Asset Refinance The Best Route For My Business?

Asset refinancing can be used to benefit businesses in many ways. Funding is often available through asset refinances that would otherwise not be possible through unsecured business finance products.

Businesses that are asset rich but in need of a fast cash injection should definitely consider asset refinance.

Getting Started

Call us now on 01922 620008 or enquire online to learn more about the benefits of asset refinancing and find out how much money you could raise.

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