Equipment Refinance
Equipment refinance helps you to release cash back into your business using assets that you own or partly own. Yet despite the useful benefits, it’s an underused financial solution. Everything your business needs to know about equipment refinance from Origin Finance UK business finance brokers.
Equipment refinancing
Many different industries have huge amounts of capital tied up in machinery or vehicles, especially manufacturing, farming, construction and logistics & warehousing. These assets can have significant value and present business owners with the option of bringing working capital back into their business.
Equipment refinancing has become an increasingly popular option for businesses looking to optimise their financial strategies in 2024. As experts in business finance, Origin Finance understands the importance of staying informed about the latest trends in equipment refinancing.
To help those considering equipment refinance (also known as asset refinance), we’ve answered some commonly asked questions to explain how it works and what can be refinanced.
What equipment can you refinance?
Equipment refinance can only be used on equipment and vehicles, including plant and machinery.
You might think of vehicles as your typical lorries, cars, trucks, buses, and vans, but they also include specialist vehicles such as tractors, forklift trucks, cement mixers, etc.
Plant includes but is not limited to cranes, piling machines, excavators, and heavy machinery used in civil engineering and construction.
If you would like to know if your asset can be refinance, Origin are here to help and create a tailored solution for your finance requirement.
Can I use equipment refinance on something that’s already on finance?
Yes. It doesn’t matter if your vehicles, plant or machinery are currently on finance (provided that your asset has enough equity). In fact, refinancing can be a strategic way of consolidating your costs. As part of the refinancing process, we’d settle the existing finance. Where possible, we’d then try to reduce your monthly outgoings to help you manage your cash flow.
How much will I receive through equipment refinance?
It depends on the lender and your specific circumstances, but generally lenders will release between 75% – 80% of the current value of your vehicle, plant or machinery.
What are the benefits of equipment refinance?
There are several benefits of using equipment refinance, some of which we’ve mentioned above, but to summarise:
- Working capital is released back into your businesses. Your debt is secured against the vehicle, plant or machinery that you’re refinancing.
- It’s an easy way of boosting your cash flow as funds will be deposited direct into your account.
- You get to keep your equipment and you can keep using it as you normally would.You can use equipment finance as a way of reducing interest or securing more competitive repayment terms on existing finance agreements.You don’t often need any additional security, such as a personal guarantee, as you would for some other finance products.
- Monthly payments are fixed, making them manageable as they’re not affected by interest rate rises.
Are there any restrictions on what can be refinanced?
Generally, we’re able to refinance most vehicles or plant and machinery, as long as it’s based in the UK. We also have a £10,000 minimum on what we can refinance.
Otherwise – it’s very likely that we’ll be able to help you with refinance. You can even refinance old equipment and vehicles. Age limits for refinance vary across different assets, Origin will be able to tell you which of your assets can be refinanced.
Business refinance
One key advantage of equipment refinancing is the ability to update or upgrade essential machinery without a significant upfront cost. This can help businesses stay competitive in rapidly evolving industries where technological advancements are crucial.
Refinance business loan
When considering business asset refinancing, it’s essential to work with experienced finance brokers like Origin Finance. Our team can help you navigate the complexities of refinancing, ensuring you secure the most favourable terms and conditions for your specific needs.
Refinance equipment loan
As we move further into 2024, equipment refinance continues to be a valuable tool for businesses looking to streamline their finances and invest in their future.
By partnering with Origin Finance, you can make informed decisions about your business refinance options and set your company up for long-term success.
How can Origin Finance help?
We’re specialists in equipment refinance. This expertise can pay dividends, as sometimes, something as simple as helping you secure competitive interest rates can have a big impact on your daily cash flow.
We’ll provide a free no obligation valuation of your vehicles or plant and machinery so you know exactly how much you can raise from your assets. We’ll also help you put your application together quickly and efficiently, maximising your chances of securing the funding you need.
Get in touch to find out more about how we can help.
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