Asset Refinance: Unlocking Cash from Your Business Assets
If you own equipment, vehicles, or machinery outright, asset refinance lets you release the cash tied up in those assets. Here is how it works.
Asset refinance allows businesses that own equipment, vehicles, or machinery outright to release the equity tied up in those assets. It is a powerful but often overlooked funding solution.
What is Asset Refinance?
Asset refinance (also known as asset-backed lending or sale-and-leaseback) works by the lender effectively buying your asset from you and leasing it back. You receive a lump sum of cash, and the asset serves as security for the loan.
How It Works
- The lender values your existing assets (vehicles, machinery, equipment)
- The lender advances a percentage of the asset value (typically 70–90%)
- You make monthly repayments over an agreed term
- At the end of the term, you own the asset outright again
What Assets Can Be Refinanced?
- Vehicles — vans, lorries, cars, specialist vehicles
- Plant and machinery — excavators, cranes, production equipment
- Technology — servers, IT infrastructure
- Medical equipment — dental chairs, MRI scanners
- Manufacturing equipment — CNC machines, production lines
- Agricultural machinery — tractors, harvesters
Benefits of Asset Refinance
- Release cash without selling — keep using your assets while accessing their value
- Quick approval — typically faster than unsecured lending
- Lower rates than unsecured — the asset provides security, reducing risk
- No property security required — ideal for businesses without property assets
- Flexible terms — match repayments to your cashflow
When to Consider Asset Refinance
- You need working capital but don't want to sell your equipment
- You own valuable assets outright and want to unlock their value
- You have been declined for unsecured finance
- You want to fund expansion using existing assets as security
- You need funds quickly — asset refinance can complete in days, not weeks
How Much Can You Borrow?
The amount depends on the type, age, and condition of the asset. Typically:
- Vehicles: up to 80–90% of market value
- Plant and machinery: up to 70–80% of market value
- Technology: up to 50–70% of market value (depreciates quickly)
- Medical equipment: up to 70–80% of market value
Things to Consider
- The lender may require a valuation of the asset
- You must be able to demonstrate the asset is unencumbered (no existing finance)
- Early repayment charges may apply on some products
- The asset serves as security — if you default, the lender can repossess it
Asset refinance is a versatile, fast, and cost-effective funding solution that many businesses overlook. If you own valuable equipment outright, it could be the key to unlocking the cash you need to grow.
Could this apply to your business?
Speak to a specialist about your own circumstances — free, no obligation.
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This article is published for general information only and does not constitute financial, tax, accounting or legal advice, or a recommendation to apply for any product. Any rates, LTV ranges, fees, timelines, tax rules or government schemes mentioned are indicative and reflect general market norms at the time of writing; they may change and should be confirmed with a specialist before acting. Read our editorial policy to see how we produce and review our content.
