Asset refinancing is a way of raising capital against assets you hold on your balance sheet.
Asset refinancing allows your business to improve cashflow by using the equity built up in assets already on your balance sheet.
We will obtain an up-to-date valuation on the assets you hold to establish the level of capital we can raise against your assets (after settling any existing debt).
The more equity you have in an asset, the more capital you may be able to raise against it.
With asset refinancing, we can help you reduce your monthly payments and help you raise capital to purchase new assets, pay deposits for new assets, or make new company acquisitions.
The funder will establish how much equity remains in your asset and will offer a percentage of the figure as a lump sum to your business, before taking ownership of the asset it is that you are refinancing.
If you only own part of the asset, the funder will pay off the original funder and then advance the lump sum under pre-agreed terms. The amount advanced depends on the asset type, condition and age.
Asset refinancing typically takes place over various term lengths, it depends on your business type, time trading and a few other parameters. Once the agreement ends, ownership of the asset will usually revert to your business.
10,000+ Companies Helped
Supporting businesses of all sizes with whole market financial access.
Asset refinancing may be a suitable option if your business is asset-rich but cash-poor. For example, if your business has £3m worth of assets but very little in cash reserves within the business.
Leveraging the value of your balance sheet assets in this way releases valuable working capital and could help your business grow.
Asset refinance would also be worth considering if you want a cash injection to boost working capital, or to cover an unexpected cash shortfall or costs.
There are a number of advantages to using asset refinance as a way of unlocking working capital which include:
• A quick injection into your cash flow.
• You regain ownership of the asset at the end of the term.
• Restructuring all your existing debt can reduce your current monthly repayments.
• If you are not eligible for an unsecured loan, asset refinancing offers an alternative.
· You own the assets: You contact us and tell us that you want to raise capital and have equipment that you own and want to refinance. We then contact one of our many funders who will then offer a valuation of the equipment by using the details of the asset that you provide - make, model, hours worked/mileage etc.
· Valuation of the assets: We can lend up to 100% of the valuation, though this depends on your business, the chosen funder and your business credit rating. For example, if the funder states that the machine is worth £100,000, we may be able to arrange funding for you for that amount against that machine.
· Quote and documentation: We then offer you a quote and if you're happy, we proceed to get you credit approved and issue all required documentation for the deal.
· Funds are released: Once everything is approved, the funder releases the funds and you begin paying your monthly instalments on the pre-agreed dates.
Some things to consider before proceeding with asset refinance are:
Ownership: You aren't selling the asset. You'll make monthly instalments and own it at the end of the agreement.
Sale: If you've bought an asset in the last 3 months, you could still refinance by 'selling' it to a funder and buying it back.
Reason: Even if you have an asset on a hire purchase (HP) agreement, you could still refinance it, depending on the equity.
Payments: Reduce monthly debt commitments or consolidate debt with lower interest rates, reducing your interest burden.
MAF Finance Group can compare finance offerings from a wide panel of lenders to find the best option for you.
If you would like to get a quote or need further information, simply fill in the form and we will contact you. If you want to speak to someone directly, you can call us on 0115 958 6872 and a member of our team will be happy to speak to you. Alternatively, email us at firstname.lastname@example.org.
Asset-based lending (ABL) is a type of finance in which a business can use its assets, such as inventory and property to release working capital.
A finance lease is simply renting the asset over an agreed period of time and you usually remain responsible for the maintenance.
Hire purchase allows your business to buy an asset by spreading the cost over a fixed period of time with regular monthly instalments.
Invoice finance provides early access to the funds owed to you in unpaid invoices. If you find your business waiting for customers to pay for your services or products, you could use invoice finance as a way of getting paid sooner.
Our supplier finance offering allows businesses to have access to a finance option, improve routes to market and give your customers an easier way of purchasing assets such as equipment, machinery and vehicles.
MAF InsightsView All
Autumn statement 2023: Key points at a glance
The chancellor has announced his financial update, here are the main points from the autumn statement.
Women In Supply Chain Award
Leanne Leslie, a senior operations manager for MAF Finance Group (MAF), has been named as a recipient of this year’s Women in Supply Chain Award.
Why is inflation so high?
High inflation has been caused by a series of big shocks to our economy.