Asset refinance can be used by businesses for 2 main uses – to reduce monthly payments on existing finance agreements or release cash from unencumbered assets.
For assets already on a finance agreement, refinancing can be used to pay off the existing finance to reduce monthly repayments, this is done by obtaining a lower interest rate or longer term.
It can also be used to finance unencumbered assets within the business, to release cash back into the businesses cashflow. For example if a machine is worth £150,000 – a financier may finance 80% of the value which allows the business to have access to £120,000 and then pay this off over a period of 3-5 years.
This provides a cash injection in to the business which is often quick and efficient. In some scenarios it can be a good alternative for a standard business loan into the business which may have not been offered by the funder, through refinance the funder has the comfort that they have the asset(s) as security should the client fail.
If you would like to discuss your options for refinance please call the office on 0345 5050 888 or email [email protected]
