Asset Refinance for UK Businesses
Unlock working capital from assets your business already owns
Asset refinance allows businesses to release capital tied up in existing equipment, machinery, vehicles, and commercial assets without selling them. For many UK SMEs, this type of funding can provide a practical way to improve cash flow, support growth plans, manage seasonal trading pressures, or fund new opportunities using assets already on the balance sheet.
Asset refinance is commonly used by businesses in sectors including:
What Is Asset Refinance?
Asset refinance is a form of secured business finance that allows a company to borrow against the value of assets it already owns.
Unlike traditional asset finance, where funding is used to purchase new equipment, refinance facilities are secured against existing assets that are either:
- Fully owned
- Have sufficient equity remaining within them
The lender assesses the value of the assets and may offer funding based on a percentage of their current market value.
How Asset Refinance Works
The structure of an asset refinance facility will vary depending on:
- The asset type
- Ownership position
- Business profile
- Funding objectives
However, the process generally follows a similar structure.
The lender reviews:
- The type of asset
- Age and condition
- Ownership status
- Resale value
- Market demand
Assets with strong residual value are generally viewed more favourably.
In some cases, an independent valuation may be required.
This helps establish:
- Current market value
- Expected resale value
- Lending suitability
The complexity of the valuation process often depends on:
- The funding amount
- Asset type
- Whether the equipment is highly specialised
The refinance facility is structured around:
- Asset value
- Repayment term
- Monthly affordability
- Business circumstances
Repayments are commonly made monthly over a fixed term.
Once documentation is completed, funds are released to the business.
The capital may then be used for a variety of commercial purposes, depending on business requirements.
The business repays the facility over the agreed term while typically retaining operational use of the asset.
At the end of the agreement, the finance is settled and the lender’s interest in the asset is removed.
What Assets Can Be Refinanced?
Commercial Vehicles
- Vans
- HGVs
- Trucks
- Fleet vehicles
- Refrigerated transport
- Specialist transport vehicles
Plant & Construction Equipment
- Excavators
- Dumpers
- Loaders
- Cranes
- Forklifts
- Access platforms
Manufacturing Machinery
- CNC machinery
- Fabrication equipment
- Production lines
- Industrial machinery
- Packaging systems
Agricultural Equipment
- Tractors
- Combines
- Balers
- Agricultural trailers
- Specialist farm machinery
Specialist Business Equipment
- Printing presses
- Medical equipment
- Catering equipment
- Renewable energy systems
- Engineering tools
- Telecoms infrastructure
Why Businesses Use Asset Refinance
For many businesses, it provides access to capital without requiring:
- Unsecured Borrowing
- External Investment
- or the disposal of productive assets
One of the most common uses of refinance is improving short-term liquidity.
Businesses with substantial capital tied up in equipment may use refinance to:
- Support operational expenditure
- Manage supplier payments
- Smooth temporary cash flow gaps
Growing businesses often require capital before revenue catches up.
Refinance may help fund.
- Recruitment
- Marketing
- Expansion
- Additional premises
- Larger contract delivery
- VAT bills
- Corporation tax liabilities
- Seasonal financial pressure
- Raw materials
- Inventory
- Seasonal stock
Benefits of Asset Refinance
Benefits of Asset Refinance
Continue Using the Asset
Preserve Working Capital
Rather than using cash reserves, refinance can help businesses retain liquidity for:
- Wages
- Stock
- Investment
- Operational flexibility
Structured Repayments
Fixed monthly payments can support budgeting and financial forecasting.
Terms are often structured around:
- Asset lifespan
- Affordability
- Business cash flow
Potential Access to Larger Funding Amounts
Because the facility is secured against tangible assets, businesses may access higher borrowing levels than through unsecured lending alone.
Flexible Use of Funds
Asset Refinance vs Unsecured Business Loans
Asset Refinance
Unsecured Business Loan
- Funding objectives
- Available security
- Cash flow
- Overall business circumstances
Industries That Commonly Use Asset Refinance
Things to Consider Before
Refinancing Assets
The business generally needs to:
- Own the asset outright
- Hold sufficient equity
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Outstanding finance balances may affect eligibility.
Older assets or highly specialised machinery may attract lower valuations or reduced lender appetite.
Businesses should ensure repayments remain affordable throughout the agreement term.
Cash flow forecasting remains important.
The lender will normally take security over the refinanced asset during the agreement.
Some agreements may involve:
- Settlement fees
- Early repayment charges
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Understanding the full facility structure is important before proceeding.
Eligibility Factors for Asset Refinance
- Asset type
- Age and condition
- Trading history
- Financial performance
- Industry sector
- Intended use of funds
Why Businesses Work With
MacManus Asset Finance
Different industries face different:
- Cash flow pressures
- Equipment requirements
- Growth challenges
Our approach focuses on:
- Understanding business objectives
- Identifying appropriate funding structures
- Helping businesses navigate available finance options
Frequently Asked Questions
Common examples include:
- Commercial vehicles
- Machinery
- Plant equipment
- Agricultural assets
- Specialist commercial equipment
Funding levels depend on:
- Asset value
- Age
- Condition
- Overall business profile
Timescales vary depending on:
- Asset type
- Valuation requirements
- Facility complexity
In some cases, funding can be arranged relatively quickly
Related Finance Options
Business Loans
- Up to £500,000 unsecured
- From 5% per annum
- 3 months to 5 years term
Invoice Finance
- Up to 90% of invoice value
- From 1 to 3% and discount rates from 1.7% over base
- Rolling or fixed agreements
VAT Loans
- Drive now, pay monthly. Don’t pay it all at once.
- Up to £2.000,000+
- 1 to 5 years term
Car Finance
- Up to £2.000,000+
- From 9.9% APR subject to credit profile
- 1 to 5 years term
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