asset refinancing
Asset refinancing is a way of raising capital against assets you hold restructuring all of your existing debt to reduce your current monthly repayments.
asset refinancing
improve cashflow by refinancing...
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’ll be able to raise against it.
We can help you reduce your monthly commitments and help you raise capital to purchase new assets, pay deposits, or make new company acquisitions.
Call 0115 958 6872, email enquiries@maffinancegroup.co.uk or fill in an enquiry form for further information.
some of the sectors that we work in...
asset refinance explained...
Asset refinancing allows your business to improve cashflow by using the equity built up in assets already on your balance sheet. It can be useful if you want to put down a deposit on a new piece of equipment, reduce your monthly commitments or make new company acquisitions.
You can refinance an asset even if it is not wholly owned by your business, and the amount of equity available is a key factor in determining how much money you could borrow against the asset.
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 whatever it is you’re 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.
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.
- A quick injection into your cash flow
- You regain ownership of the asset at the end of the term
- Protects your company from asset depreciation
- 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
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.
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.
Refinancing assets provides an alternative line of credit without affecting existing bank financing and doesn’t reply on your credit rating or business performance.
things to consider...
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.
so how does asset refinancing work?
We then contact one of our many funders who will then offer a valuation of the equipment by using the details of the vehicle that you provide - make, model, hours worked/mileage etc.
Card #2
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.
Card #3
Card #4
get in touch...
0115 958 6872 and a member of our team will be happy to speak to you.