What is asset refinance?

What is Asset Refinance?

Understanding asset refinance

Asset refinance is a form of business funding that allows companies to unlock capital tied up in existing assets. Businesses can release a large portion of the value from an asset, such as vehicles, machinery, or equipment to access working capital or consolidate existing finance agreements.

Refinancing is particularly useful for companies that have a high amount of equity within assets, or those looking to improve liquidity, restructure existing finance, or fund new investments without taking on traditional debt.

How does asset refinance work?

Asset refinance involves using the value of your existing assets to secure new finance. Funders will assess the asset’s current market value, condition, and liquidity, and then offer a loan or finance facility based on a percentage of that value, which is commonly referred to as the loan-to-value (LTV) ratio.

You retain use of the asset while repaying the finance which makes asset refinance an efficient solution for businesses looking to improve cash flow or reduce their borrowing costs.

What can I use asset refinance for?

Asset refinance can be used to:

• Raise capital without selling key equipment
• Restructure existing debt that could reduce your current payment
• Buy out a lease agreement or finance arrangement
• Release equity from fully paid-off assets

Advantages of using asset refinance

Preserve working capital: Asset refinance allows you to access funding without dipping into your cash reserves or waiting for future revenues.

No need for new purchases: Rather than acquiring new finance for new equipment, you can leverage what you already own.

Consolidate existing finance: If you have several finance agreements, refinance can help restructure those into a single, manageable payment.

Retain control: Asset refinance doesn’t dilute ownership or control of your business.

Improve cash flow: By unlocking capital tied up in assets, you can inject cash into your business to manage day-to-day operations, fund new investments, or respond to market changes.

Faster access to funds: Asset refinance can be quick to arrange, especially if your assets are already in use and fully owned.

How can I apply for asset refinance?

MAF Finance Group work with a panel of banks and alternative funders to identify the finance solution that aligns with your business needs.

If you would like further information about our finance facilities and which one is right for you, or if you would like to get a quote, our team of finance experts will be happy to help.