What Is Asset Refinancing?
Asset refinancing is a financial strategy that allows businesses to leverage the value of existing assets—such as property, equipment, or vehicles—to secure new funding. Unlike asset sales, refinancing retains ownership while improving liquidity, optimizing capital structure, and supporting growth initiatives.
Why Businesses Choose Asset Refinancing
In today’s volatile economic landscape, companies seek flexible financing options that don’t dilute equity or disrupt operations. Asset refinancing offers:
- Immediate cash flow without selling assets
- Tax efficiency through interest deductibility and depreciation adjustments
- Improved balance sheet ratios, enhancing creditworthiness
- Strategic reinvestment in operations, technology, or expansion
Companies normally overlook that they are sitting on large amounts of equity left in their equipment that they own.
We can even settle existing finance on the equipment, and reduce your present repayments.
This has become a very useful and discreet method for companies as a cost effective way for firms to raise money.
Often your banks just do not listen, very good to help when things are smooth, but when cash flow problems hit, then will not offer the helping hand that you require!
Asset refinance simply, gives you as cash injection from your existing assets and equipment, you could call it a capital release plan.
Two recent examples of Oak’s innovative and imaginative asset refinance or equipment refinance plans were to a printing company, that was looking to raise further working capital.
Oak arranged asset refinance on three large printing machines, and freed up over £250,000 of valuable working capital that was previously tied up in the old machines.
In the second example, a machine tool company required a cash boost over a quiet period, By refinancing a number of older CNC machines, over £150,000 was raised.
This was provided discreetly, efficiently and professionally.
Just think how we could assist your business!
Even if you already have finance on your equipment, we can arrange both asset refinance as a lease or as HP. The choice is yours!
Without preambles or mission statements, we provide direct assistance in crafting a robust Plan B that aligns with your comprehensive requirements, encompassing both immediate and extended horizons.
The business landscape is subject to rapid fluctuations, with potential scenarios such as bankruptcy and the need for financial resources to mitigate short-term deficits.
With these, and any other situations, our asset refinance plan can help you grow and survive without asking your existing bankers, and importantly keeping your existing credit lines free.
Plan B:
Occasionally, even the most meticulously crafted plans encounter unforeseen challenges. Banks, private equity firms, investors, and financial institutions may fail to deliver at the expected time, and setbacks are a common occurrence in most business endeavours.
