Asset Refinancing

Asset refinancing is an attractive finance arrangement that offers a simple and straightforward way to raise cash against an asset or assets that your company owns. Depending on the amount of funds required, you can refinance any single or multiple assets. Refinancing arrangements can be offered on the equity tied up in almost any company asset. Refinancing several assets grouped together is also commonplace and a good way to consolidate cash flow.

Releasing cash from existing assets through refinance can give you the capital required to grow your business whilst not over leveraging your company in the same way working capital lending can. Our banks and funding houses offer refinancing arrangements from £5,000 to £25million. Depending on the value of the asset and its resale validity, they will sometimes lend more than 100% of its market value.

Whether you are looking to improve your cashflow position, purchase new materials or refurbish your existing business premises, asset refinancing provides a quick, flexible, and straightforward way to acquire the working capital you need to expand.

Benefits of Asset Refinancing

Asset refinancing offers a straightforward, low interest and quick way to secure additional working capital for your business requirements. Clients can continue to use the asset offered as security against the loan. Then use the released funds to invest into new people, assets, or workplaces to expand the business.

Refinancing arrangements offer structured agreements to assist business owners in effective budgeting and cash flow forecasting. Interest rates are typically much lower than traditional working capital facilities and charges are fixed so you will not incur any surprises during the lifetime of the loan. Once the loan amount has been agreed, you will pay a monthly/quarterly amount which will not change over the course of the agreement (typically 3-7 years).

Refinance can also be used to lower overheads. Tis can be achieved by putting assets on a longer agreement than what is currently being paid. For example… You currently have a CNC machine on a hire purchase agreement and you have 2 years left of a 5 year agreement. You can refinance the 2 years (£30,000.00) over a new 5 year term which drastically lowers your monthly repayment.

Why Use Systems Finance?

Industry Leading Rates

With our access to over 40 UK funders, we can provide industry leading rates from just 2.5%.

98% Acceptance Rate

We spend time understanding your business and what you are looking to achieve. This results in the creation of detailed proposals that ensure you receive the funding you want.

Diverse Lenders

We can provide tailored finance solutions specific to your asset, industry and business. Whether you are a new start business, or well-established global firm, we can find a solution for you.

Rapid Finance

Systems Finance provides same day quotations with the ability to get you funding within just 24/48 working hours.

Key Benefits of Asset Finance

  • Tax Flexibility

    Some types of equipment finance like equipment leasing and sale and leaseback are more tax efficient than buying outright. That’s because when you lease an item it’s a monthly expense rather than an asset sitting on your balance sheet.

  • Easy to budget and manage

    Equipment finance in most of its forms gives you predictable payments so you can spread the cost over time. That means that managing cashflow is that little bit simpler, and you can focus on running the business.

  • Access to other lines of credit

    You don’t have to use up a bank facility you already have.

  • Tax efficiency

    Some types of equipment finance like equipment leasing and sale and leaseback are more tax efficient than buying outright. That’s because when you lease an item it’s a monthly expense rather than an asset sitting on your balance sheet.

  • Spread the cost and pay as you use it

    Why pay upfront on a depreciating asset when you can pay as you use it and spread the cost.

  • Always have the latest technology

    Get the latest technology without having to pay the huge upfront costs.

Key Points to Consider

  • Do your company own assets or have assets on finance agreements?
  • What amount of capital are you looking to raise through refinancing your equipment/assets?
  • Is there a resale value in the assets you are considering? If not is your company credit solid?
  • Would you be looking to raise further funds after the refinance? Have you got a plan in place to do so?
asset refinancing

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