Asset refinance releases cash from the plant, machinery, vehicles and equipment your business already owns. A lender advances a lump sum against the value of the asset, and you repay it over an agreed term while carrying on using the asset exactly as before.
We are an independent asset finance broker and we arrange refinance facilities from £5,000 to £10 million. Assets you own outright and assets part way through an existing agreement can both be considered. We do not charge a broker fee on asset refinance. We are paid a commission by the lender that provides the facility.
- Facilities from £5,000 to £10 million
- Around 25 asset finance lenders on panel, from a wider panel of 135+ UK funders
- Assets still part way through an existing agreement can often be refinanced
- No broker fee; the lender pays our commission
- Funds typically 2 to 5 working days once the valuation and documents are complete
- NACFB member, established 2020, over £20 million of commercial finance arranged
What is asset refinance?
Asset refinance is a way of turning equipment you already own back into working capital. Rather than selling an asset you still need, you raise money against it and keep using it.
It is sometimes called capital release, sale and leaseback, or a sale and hire purchase back, depending on how the transaction is structured. The cash effect is broadly the same in each case. What differs is who holds legal title to the asset during the term.
Because the lender takes security in a physical asset with a resale market, asset refinance is often available where an unsecured business loan of the same size would not be.
How asset refinance works
- You send us a schedule of the assets: what they are, when they were bought, what they cost, and whether anything is still owed on them.
- We approach the lenders whose criteria fit your business, your sector and the asset type.
- The lender values the asset, either on paper from the make, model, age and hours or mileage, or by inspection on larger facilities.
- You receive an offer setting out the advance, the term and the monthly payment.
- If there is an existing agreement on the asset, the new lender settles that balance directly with the outgoing finance company.
- The net advance is paid to your business and you carry on using the asset.
The three structures lenders use
| Structure | Title during the term | What you receive | Best for |
|---|---|---|---|
| Refinance against an owned asset | You keep title and the lender takes security over the asset | A percentage of the assessed value | Businesses that want to keep legal ownership |
| Sale and hire purchase back | The funder holds title until the final payment, then it returns to you | The agreed value of the asset | Assets bought outright with cash in the recent past |
| Sale and leaseback | The funder holds title for the whole term | The agreed value of the asset | Releasing the largest sum where ownership is not the priority |
Which structure a lender offers depends on the asset, its age and how it was originally bought. We will tell you which one is on the table before you commit to anything.
What can be refinanced?
Refinance works on hard assets with an established resale market. The clearer the second-hand value, the easier the facility is to place:
- Excavators, dumpers, telehandlers and site plant
- CNC machines, lathes, presses and machine tools
- HGVs, tractor units, trailers and commercial vehicles
- Tractors, combines and agricultural machinery
- Forklifts, cranes and materials handling
- Printing presses and packaging lines
- Waste, recycling and screening plant
- Coaches, minibuses and taxis
- Generators and compressors
Soft assets are much harder. IT equipment, furniture, fit-out and similar items lose value quickly and are difficult to recover and resell, so most lenders will not refinance them unless the purchase was very recent and there is genuine residual value. Highly bespoke machinery with a limited buyer market, and anything fixed into a building, is also difficult.
Can I refinance an asset that is still on finance?
Yes, in many cases. You do not have to own an asset outright to refinance it. What you are raising money against is the equity you have built up in it.
As an illustration, take a machine now valued at £16,000 with £2,000 outstanding on an existing hire purchase agreement. The refinance lender settles the £2,000 with the outgoing funder, advances against the machine’s value, and pays your business the difference. You are left with one agreement and a cash sum. The figures are illustrative, not a quotation.
The same approach is used to restructure several agreements at once, consolidating them into a single facility on one monthly payment.
How much can you raise?
The advance is a percentage of the value the lender puts on the asset, so it cannot exceed what the asset is worth. Raising £15,000 against a vehicle worth £10,000 is not possible, whatever the business needs. What moves the number is:
- Age and condition. Hours on a machine, mileage on a vehicle, and service history.
- Make and model. Well-known brands with an active second-hand market value more highly than obscure ones.
- Whether it is owned outright. More equity in the asset means more available to release.
- Asset type. Hard assets attract higher advances than anything with a thin resale market.
- Your trading position. The asset provides the security, but lenders still look at affordability.
Refinancing an asset you bought recently
If your business bought a machine or vehicle outright and used cash to do it, a sale and hire purchase back can put most of that cash back into the business. Lenders that offer this normally want the purchase to be recent, and each one sets its own window, so tell us the invoice date at the outset. Keep the original purchase invoice, because the lender will ask for it.
Tax and VAT to settle with your accountant
A sale and leaseback or a sale and hire purchase back is a disposal of the asset for tax purposes. If the asset has been written down in your accounts but still carries market value, a balancing charge or a taxable profit can arise on the sale. VAT treatment depends on how the transaction is structured.
None of this is a reason to avoid refinance, but it is transaction specific and it is worth settling with your accountant before you sign, not after.
Risks to weigh up
- The total cost over the term will be more than the cash you release. Compare the whole cost, not the monthly payment.
- Under a sale and leaseback or a sale and hire purchase back you do not hold legal title during the term.
- The asset is the lender’s security, so it is at risk if payments are not maintained.
- A personal guarantee from the directors may be required.
- Refinancing an existing agreement can extend the term, which lowers the monthly payment but increases the total interest paid.
Why businesses use asset refinance
- Funding a VAT bill, a corporation tax bill or another lump sum liability
- Raising a deposit towards a larger purchase or a property transaction
- Consolidating several asset agreements onto one lower monthly payment
- Bridging the gap between winning work and being paid for it, sometimes alongside invoice finance
- Funding growth, recruitment or a new contract without giving up equity
- Replacing cash spent on an outright purchase
Other ways to fund an asset
Refinance is for assets you already have. If you are buying, the choice is normally between commercial hire purchase, a finance lease and an operating lease. The asset finance page compares all four side by side.
Asset refinance FAQ
What is asset refinance?
Asset refinance releases cash from plant, machinery, vehicles or equipment a business already owns. A lender advances a lump sum against the value of the asset and the business repays it over an agreed term, continuing to use the asset throughout.
Can I refinance an asset that is still on finance?
Yes, in many cases. You are raising money against the equity built up in the asset. The refinance lender settles the outstanding balance with the existing finance company, advances against the value of the asset, and pays your business the difference.
How much can I raise against my assets?
The advance is a percentage of the value the lender puts on the asset, so it cannot be more than the asset is worth. Age, condition, hours or mileage, make and model, whether the asset is owned outright, and your trading position all affect the figure. We arrange facilities from £5,000 to £10 million.
What is the difference between asset refinance and sale and leaseback?
Sale and leaseback is one way of structuring an asset refinance. The business sells the asset to the funder and leases it back, so the funder holds title for the term. In a refinance against an owned asset, the business keeps title and the lender takes security over it instead. A sale and hire purchase back sits between the two, with title returning to the business after the final payment.
Which assets can be refinanced?
Hard assets with an established resale market, such as plant, machinery, machine tools, HGVs, commercial vehicles, agricultural equipment and materials handling. Soft assets such as IT equipment, furniture and fit-out are rarely refinanceable because they lose value quickly and are difficult to recover and resell.
How long does asset refinance take?
Indicative terms are usually available the same or next working day. Funds are typically with the business in 2 to 5 working days once the valuation and documents are complete. A physical inspection, an unusual asset or a larger facility requiring full financial information will take longer.
Can I refinance assets with bad credit?
Often, yes. The lender holds security in the asset, which makes refinance more accessible than unsecured borrowing where there is adverse credit. Lenders will look at what the adverse is, how recent it is, whether it has been satisfied, and whether the directors will give a personal guarantee.
Do you charge a broker fee for asset refinance?
No. We do not charge our clients a broker fee on asset refinance. We are paid a commission by the lender that provides the facility, and we will confirm that arrangement on request.
Is Bolton Business Finance authorised by the FCA?
No. Bolton Business Finance Ltd is not authorised or regulated by the Financial Conduct Authority. We arrange non-regulated commercial finance for business purposes only, and do not offer consumer credit or regulated agreements. We are a member of the National Association of Commercial Finance Brokers (NACFB).
Get an asset refinance quote
Send us a list of the assets you own and what you are trying to raise, and we will come back with the options that are realistically available to your business. No broker fee, and no obligation to proceed.
Bolton Business Finance Ltd is a commercial finance broker, not a lender. We arrange non-regulated, business-purpose finance and are not authorised or regulated by the Financial Conduct Authority. Nothing on this page is a quotation, an offer of finance, or tax or accounting advice. All facilities are subject to status, lender criteria, valuation and the assets offered as security.