Re-finance Your Business Assets: Unlock Capital from Existing Equipment to Fuel Growth
As a business owner, maintaining a steady cash flow is essential for driving growth and sustaining operations. One of the most powerful ways to access additional funds without increasing debt levels is by re-financing your existing business assets. Asset re-financing allows you to unlock the capital tied up in your hard and soft assets—providing an immediate cash injection to support your business's needs.
Whether you’re looking to expand, manage cash flow more effectively, or reinvest in core areas, re-financing offers a smart solution. From machinery and vehicles to computers and other technology, we can help you leverage the value of your existing assets.
It’s not just hard assets like Yellow Plant that can be refinanced…
…it’s also soft assets, like Scaffolding…
…and even Furniture, from restaurants to offices.
What is Asset Re-financing?
Asset re-financing enables you to borrow against the value of assets your business already owns. This financing option essentially “re-purposes” your assets to release capital, turning equipment you already possess into working capital that can be reinvested back into your business.
When it comes to re-financing, both hard assets and soft assets can be included, giving you flexible financing options tailored to your business’s asset portfolio:
Hard Assets: Machinery, vehicles, equipment, production tools, heavy-duty tools, and other long-term assets
Soft Assets: Computers, software systems, office furniture, technology, and equipment with shorter lifespans
How Asset Re-financing Works
Here’s a simple overview of the re-financing process:
Asset Valuation: The first step is valuing your existing assets, determining how much capital you can release based on their current worth.
Funding Arrangement: After valuation, you can access up to a percentage of the assets’ total value, with the re-financing structured as a loan secured against the assets.
Use of Funds: Once approved, the funds can be immediately used for business needs—whether for expansion, managing expenses, or launching new projects.
Flexible Repayment Terms: Repayment terms are set to suit your cash flow, typically between 12 to 84 months, providing you with the flexibility to pay over a period that aligns with your financial planning.
Your search for essential working capital may be found in your existing business assets.
Key Benefits of Asset Re-financing for Your Business
Re-financing your business assets offers numerous advantages that can positively impact your cash flow, flexibility, and growth potential:
Release Capital for Growth
Re-financing turns existing assets into liquid cash, allowing you to reinvest in strategic growth areas such as expansion, hiring, and R&D. With funds at hand, you’re better positioned to take advantage of new opportunities.Maintain Working Capital
Rather than purchasing new equipment or taking on additional debt, you can leverage existing assets to keep your cash flow healthy. This frees up your working capital to meet everyday expenses, cover payroll, or manage unexpected costs.Flexible Repayment Terms
Repayment terms for asset re-financing are structured around your cash flow, often ranging from 12 to 84 months. These terms can be tailored to align with your business’s revenue cycles, providing you with manageable monthly payments.Tax Efficiency
Asset re-financing may provide certain tax advantages, as interest payments on the loan are often tax-deductible, reducing the overall cost of the finance.Preserve Ownership of Assets
Unlike asset sales or disposals, re-financing allows you to retain full ownership of your assets while accessing their capital value. This ensures you have the equipment you need to continue operations and grow without losing essential resources.Improves Liquidity Without New Debt
Asset re-financing enables you to unlock funds from existing assets without resorting to traditional loans or credit. This financing approach can improve your business’s liquidity without impacting your debt levels or creditworthiness.
Types of Business Assets You Can Re-finance
Here are common categories of assets that can be re-financed to release capital, allowing your business to maximize the value of what it already owns:
Machinery and Production Equipment: Industrial equipment, assembly lines, and other machinery used in manufacturing and production.
Vehicles and Fleet: Company vehicles, trucks, delivery vans, or any other transport equipment essential to your business.
IT and Technology Assets: Computers, software systems, office technology, servers, and telecommunications equipment.
Office Furniture and Fixtures: Desks, chairs, storage systems, and other office furniture that may qualify for re-financing.
Examples of How Asset Re-financing Can Benefit Your Business
Expansion: A manufacturing company with significant machinery and equipment can re-finance these assets to fund the addition of a new production line, enabling greater output without needing to take on new debt.
Seasonal Cash Flow Support: A retail business can re-finance its inventory management systems and office equipment to bridge cash flow gaps during low-sales periods, ensuring continuous operational stability.
Equipment Upgrades: By re-financing older technology assets, a business can access the capital needed to upgrade to the latest models, staying competitive without a large initial cash outlay.
Working Capital Boost: An SME with a limited budget can re-finance company vehicles and warehouse machinery to release cash, maintaining a steady cash flow and covering essential costs such as payroll and supplier payments.
Why Choose Our Asset Re-financing Services?
With extensive experience in asset re-financing, we’re dedicated to helping businesses like yours unlock the capital they need to thrive. We provide expert valuation, a range of repayment terms, and flexible options tailored to suit your asset portfolio and cash flow needs. We specialize in understanding your unique business goals, ensuring you get the most value from your existing assets.
Our services include:
Customized Finance Solutions: Each business has unique needs, and we work closely with you to customize a financing solution that aligns with your cash flow and operational demands.
Quick Access to Funds: Our streamlined re-financing process ensures you receive funds promptly, so you can address your business needs without delay.
Industry Expertise: With years of experience in business finance, our team provides expert guidance, helping you make the best decision to support your growth.
Frequently Asked Questions about Asset Re-financing
Q: How much can I borrow against my assets?
A: The loan amount depends on the value of your assets, typically allowing you to borrow a percentage of their appraised value. We’ll work with you to determine the exact amount based on a professional valuation.
Q: Can I re-finance any type of equipment?
A: Most business equipment qualifies for re-financing, including machinery, vehicles, computers, and office equipment. Contact us to discuss which of your assets can be re-financed.
Q: Are there additional fees or interest rates?
A: Interest rates and fees vary based on the asset type, loan amount, and repayment terms. Our team will provide full transparency on rates and costs, ensuring you understand all aspects before making a decision.
Q: Will I lose ownership of my assets?
A: No. Re-financing is structured as a loan, allowing you to retain ownership while using the assets to secure the financing.
Ready to Unlock Capital from Your Assets?
Whether you're looking to grow, manage cash flow, or upgrade equipment, re-financing your assets provides a practical way to access funds. With our expertise and commitment to supporting businesses like yours, we’re here to help you turn your existing assets into a powerful financial resource.
Contact us today to discuss your asset re-financing options and take the next step toward reaching your business goals.