Asset refinance

Asset refinance releases cash from equipment, vehicles, plant or machinery your business already owns. The lender values the assets, advances a proportion of that value as a lump sum, and takes security over them. You keep using the assets throughout and repay over an agreed term. It is also called capital release, equipment refinance or, in one of its forms, sale and leaseback.

The difference is ownership, and it is more than a technicality. Under a refinance you keep legal title to the asset and the lender registers a charge over it as security. Under a sale and leaseback the lender actually buys the asset from you and leases it back, so title passes to them and you become a lessee of equipment you used to own. Sale and leaseback can release more cash, but the accounting treatment and your position at the end of the term both differ. Check the structure you are being offered, because the two terms are often used interchangeably when they should not be.

Direction. Asset finance helps you acquire equipment you do not yet have, with the lender paying your supplier. Asset refinance releases cash from equipment you already own, with the lender paying you. Same family of products, opposite flows of money and completely different reasons for using them.

Often yes, provided the outstanding balance is low enough relative to the current value. The new lender settles the existing agreement and advances the surplus to you. Where the balance is close to the asset's value there is little equity to release and the exercise may not be worthwhile. We can work out whether there is enough in it before you apply.

Hard assets with a clear resale market work best: commercial vehicles, HGVs, trailers, construction and agricultural plant, manufacturing machinery, CNC equipment and similar. They need to be identifiable by serial or registration number, in reasonable condition, and not too old for the asset type. Soft assets such as IT equipment, furniture and shop fit-outs are much harder to refinance because they hold little value second hand.

Typically 70% to 90% of the lender's valuation, based on a professional assessment rather than on what you paid. Well-maintained hard assets with strong resale demand attract the highest proportion, and some lenders advertise more. Expect the valuation itself to come in below your own estimate: lenders assess what the kit would fetch in a sale they had to run, not what it is worth to you as a going concern. Facilities across the market run from around £5,000 to £50m. These are indicative market ranges as at August 2026, not a quote.

Yes. That is the entire point of the product. The assets stay in your possession and in use throughout the agreement. Operationally nothing changes on the day the money arrives, which is what distinguishes this from simply selling the equipment.

Straightforward cases can complete in a matter of days, which is considerably faster than raising money against property. Speed depends mainly on how quickly the assets can be valued and whether there are existing charges to be cleared or negotiated.

Often yes. Although the facility is secured on the assets, lenders frequently ask directors for a personal guarantee as well, particularly where the assets are older or more specialised. We flag the requirement on each lender we shortlist.

It depends entirely on what you do with the money. Releasing cash from a paid-off machine to fund a contract that generates a solid return is a sound commercial decision. Releasing it to cover ongoing losses converts an owned asset into a monthly liability and rarely ends well. The honest test is whether the released cash will earn more than the facility costs.

UK limited companies, LLPs and PLCs. It suits construction, haulage, manufacturing, engineering, agriculture and any business with meaningful owned plant or vehicles.

Commercial asset refinance provided to limited companies for business purposes is typically unregulated. FundingLinks works only on unregulated commercial finance for UK businesses.