Equipment refinance
Raise working capital against machinery you already own outright, without selling it or losing the use of it for a single day.
Request a callback- Typical amount
- Set by asset value
- Typical term
- 1 to 5 years
- Security
- The refinanced asset
- Use of funds
- Almost any business purpose
Figures are indicative market ranges at the time of writing, not offers or quotes. What is available to your business depends on the lender, your circumstances and the security available.
About equipment refinance
Refinance runs asset finance in reverse. Instead of a funder buying equipment for you, it buys equipment you already own, pays you the money, and you continue using it under a hire purchase or lease agreement. Nothing physically moves and nothing stops working.
It is one of the few ways an asset-rich business with a thin cash position can raise money quickly without offering property as security. Businesses use it to fund a VAT bill, take on a large contract, cover a seasonal dip, or consolidate a set of expensive short-term facilities into one cheaper monthly payment.
How much you can raise depends on what the equipment would fetch at a forced sale rather than what you paid for it, and funders discount accordingly. Equipment already under an existing agreement can sometimes still be used, with the outstanding balance settled from the advance and the difference paid out to you.
When businesses reach for it
- A large opportunity has arrived and the working capital to service it has not.
- A tax bill is due and the cash to meet it is tied up in machinery in the yard.
- Several expensive short-term facilities could be replaced with one cheaper agreement.
- A bank has declined on the grounds of security, but the business owns valuable kit outright.
- Seasonal trading leaves a predictable gap that needs bridging without touching the overdraft.
Understand before you commit
- You are giving up unencumbered ownership of an asset you currently own free and clear.
- Advances are based on a discounted resale value, not on the original purchase price.
- If the payments are not met, the funder can recover the equipment — which may be equipment you cannot trade without.
- Refinancing to service other debt can compound a problem rather than solve it, so be honest with yourself about the cause.
- Older assets attract shorter terms, so check the monthly cost is genuinely affordable.
Frequently asked
Do I have to give up the equipment?
No. It stays exactly where it is and you carry on using it throughout. Legal title moves to the funder for the duration of the agreement and returns to you at the end, but nothing about your day-to-day operation changes.
How much can I raise?
It is driven by what the asset would realistically sell for, discounted for the fact that a forced sale rarely achieves full market value. Recent, well-maintained equipment with an active resale market raises the most. We will get an indication before anything is formally valued.
Can I refinance equipment that is still on finance?
Often, yes. The existing agreement is settled from the new advance and you receive whatever equity remains. Whether it is worthwhile depends on how much of the original agreement you have already paid off and what the settlement figure looks like.
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Tell us what the money is for
A short conversation is usually enough for us to tell you what is realistic — including when the answer is that you should not borrow.
