Asset finance
Asset Refinance for UK Businesses
Asset refinance lets a business raise money against equipment, machinery or vehicles it already owns, or partly owns, and keep using them while it pays the money back.
It turns value that’s tied up in assets into cash for the business, without selling the assets the business relies on.
Wize Finance can help your business see whether asset refinance, or another type of finance, may suit what you need.
Tell us which assets the business owns and how much you'd like to release. The team reviews your enquiry and discusses whether refinancing them may work.
How asset refinance works
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The asset is valued.
The provider looks at what the asset is, its age and condition, and how easily it could be sold if it had to be.
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An amount is agreed.
How much may be released depends on the asset’s value and how much of it the business owns outright.
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Any existing finance can be settled.
If money is still owed on the asset, the new provider may pay that off as part of the arrangement.
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The business keeps using the asset.
It makes regular payments over an agreed term while the asset carries on working for the business.
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At the end of the agreement.
Depending on the structure, ownership returns to the business, or the agreement sets out what happens next.
Common ways it’s arranged
Providers structure asset refinance in different ways, and the structure decides who owns the asset during the agreement.
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Sale and leaseback.
The provider buys the asset from the business and leases it back. The provider owns the asset during the lease, and the business pays to keep using it.
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Refinance through hire purchase.
The provider buys the asset and the business buys it back in instalments. Ownership returns to the business once all the payments are made.
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A loan secured on the asset.
The business keeps ownership and borrows against the asset, which the provider holds as security until the loan is repaid.
What can be refinanced
Providers usually prefer assets that keep their value and could be resold. Assets with little resale value, or that are heavily customised, can be harder to refinance.
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Plant and machinery Production, manufacturing, construction and materials-handling equipment.
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Vehicles Vans, trucks, commercial vehicles and fleets.
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Specialist equipment Catering, medical, dental, printing and other sector-specific equipment.
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Agricultural equipment Tractors, harvesters and other farm machinery.
What providers look at
A provider looks at the asset and at the business together. The asset’s value matters, but the business still needs to be able to keep up the payments.
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Ownership. Whether the business owns the asset outright, and how much is still owed on it under any existing finance.
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Trading and income. How long the business has been trading and what it earns, usually shown in bank statements and accounts.
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Affordability. Whether the business’s cash flow can cover the new payments alongside what it already pays out.
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Credit history. The business’s credit record and, often, the personal records of its owners or directors.
For more on how a business is usually assessed, see Business Loan Eligibility.
What to have ready
Having the details of the assets to hand helps a provider value them and work out what could be released.
Providers ask for different information depending on the asset and the amount, so treat this as a starting point rather than a complete list.
Common ways asset refinance is arranged
- Sale and leaseback
- Hire purchase
- Secured loan
Have assets tied up in the business?
Tell us what the business owns and what you need the money for, and see which types of finance may suit your business.
Asset refinance or another kind of finance?
Asset refinance starts with what the business already owns. Other finance looks at what it earns or what it's owed.
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Buying new equipment or vehicles. That’s Asset Finance: the provider funds the new asset and the business pays for it over time.
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Replacing or combining existing debts. Business Refinancing & Debt Consolidation looks at the borrowing itself, rather than releasing value from an asset.
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Cash tied up in unpaid invoices. Invoice Finance releases money against what customers owe.
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Working capital without using an asset. Working Capital Loans are based more on what the business earns.
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Borrowing against property. Secured Business Loans and Commercial Mortgages use property as security.
Costs and risks to understand
What to compare:
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The interest rate, and the total amount repayable
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Arrangement, documentation and valuation fees
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The settlement figure on any existing finance, and any early settlement charge
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Who owns the asset during the agreement, and at the end
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Insurance and maintenance the agreement requires
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What happens if the business wants to end the agreement early
Asset refinance FAQs
What is asset refinance?
Asset refinance is a way for a business to raise money against equipment, machinery or vehicles it already owns, or partly owns. A finance provider releases cash based on the asset’s value, and the business carries on using the asset while it makes regular payments.
Can I refinance an asset that still has finance on it?
Often, yes. If there’s still money owing on the asset, for example under a hire purchase agreement, a new provider may settle that balance as part of the arrangement and release any remaining value. How much is left depends on the asset’s value and what’s still owed.
Is asset refinance the same as sale and leaseback?
Sale and leaseback is one way of doing it. The provider buys the asset and leases it back to the business. Other arrangements use hire purchase, where ownership returns to the business once all the payments are made, or a loan secured on the asset.
What can the money be used for?
Usually any legitimate business purpose, such as working capital, paying a tax bill, funding growth or buying stock. Some providers ask what the money is for, and the agreement may set conditions.
How is asset refinance different from asset finance?
Asset finance helps a business acquire a new asset and pay for it over time. Asset refinance starts with an asset the business already has and releases cash from it.
Does the business keep using the asset?
Yes. The business keeps the asset and carries on using it. Depending on the structure, the provider may own it, or hold security over it, until the agreement ends. The asset is at risk if payments aren’t kept up.
Ready to talk about your assets?
Tell us about your business, the assets it owns and what you need the money for, and see which types of finance may suit it.
- the assets it owns
- what you need the money for