Commercial Vehicle Refinance is a way of unlocking money from vehicles such as company cars, vans or any other type of vehicle for business use.

A huge number of companies rely on their vehicles for commuting, transporting goods and carrying out essential business tasks. In the UK, there are 720 thousand company cars on the roads but we also know from RAC figures that there are 4.74 million LGVs, 530,000 HGVs and 140,000 buses & coaches. And those stats don’t include industry-specific vehicles, which are designed to complete specific tasks in areas like construction, and manufacturing and engineering.

Commercial vehicles are often very expensive and, therefore, valuable business assets. In this article, we explain how Commercial Vehicle Refinance works and how it can help asset-rich companies raise working capital.

After an assessment of your vehicle’s worth, the lender will generally release around 75% – 80% of this value, giving your business an immediate cash injection. At the same time, you can keep using the vehicles as you would normally. As part of the refinance agreement, you’ll pay a monthly fee with a fixed interest rate over an agreed term.

You can also refinance vehicles that you don’t fully own. If you’re paying off debt on multiple vehicles, refinance is a way of consolidating these arrangements into one, simplifying payments but also potentially lowering interest rates, which could save your business a significant amount of money and increase your day-to-day cashflow.

Commercial Vehicle Refinance is a type of Equipment Refinance, which means many assets (or in this case, many vehicles) can be used. Examples of vehicles that can be refinanced include:

• Cars
• Taxis
• Buses
• Lorries
• Motorcycles
• Heavy goods vehicles (HGV)
• Coaches
• Bulldozers
• Diggers
• Cranes
• Tractors
• Forklift trucks
• Cement mixers
• Combine harvesters
• Crop sprayers
• Ambulances

This is just a sample of what you can refinance. In practice, you can choose almost any vehicle in your possession.

Commercial Vehicle Refinance offers a range of benefits, including:

• You can access the value of your vehicle as an immediate cash boost.
• Monthly repayments are fixed.
• You can potentially reduce interest rate payments and secure better repayment terms on your existing debts.
• It’s easier to access than traditional business loans as there are less stringent credit requirements.
• By using the vehicle as the security for the finance, there’s no need for any additional collateral.
• You can keep using your equipment, and after the agreement is paid, you’ll regain complete ownership.
• You’ve got complete control over what you refinance, whether that’s a single vehicle or a whole fleet.

One of the advantages of Commercial Vehicle Refinance is that the money is transferred into your bank account to be used as you see fit. This means it can help you buy more vehicles, hire new staff, fit out your office, upgrade your equipment, or boost your working capital to cover day-to-day expenses. It’s really up to you.

Yes, older vehicles can also be refinanced. There may be age limits on some vehicles, but at Origin we will be able to let you know if they’re eligible for refinance.

The business and the asset must be based in the UK to be eligible for Commercial Vehicle Refinance. There’s also a £10,000 minimum value of what we can refinance.

As specialists in Commercial Vehicle Refinance, we can help you find the right solution for your business.

We can provide a free, no obligation valuation of your vehicles so you know exactly how much you can raise. We can also help you put your application together to maximise your chances of success.

Get in touch to find out more.

If you like this article, you might also enjoy reading:

• Everything your business needs to know about equipment refinance
• How to finance commercial vehicles for your business

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, construction. 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.

If you enjoyed this article, you may also like:

• Asset finance explained
• The role of refinancing in the building and construction industry

Refinancing in the building and construction industry

It’s common for those working in building and construction to have a large amount of equity tied up in vehicles and equipment. Refinancing provides a quick and effective way for businesses to release capital from these assets – and there are other benefits too!

By refinancing, construction companies can take advantage of lower interest rates, lower monthly payments, and shorten their loan repayment terms.

This allows them to free up cash flow, reduce debt, and increase profitability.

In this article, we explain what refinancing is and how the construction industry can take advantage of it as a powerful source of funds for projects, expansion, maintenance and more.

What is refinancing?

Refinancing is the process of obtaining a new loan against an existing asset that is used as collateral. In the context of the construction industry, refinancing is typically used to release the equity tied up in machinery, vehicles, and other equipment that a business owns.

By refinancing these assets, businesses can access funds quickly and efficiently, without needing to sell their equipment outright.

How can refinancing benefit the building and construction industry?

Refinancing can provide a financial boost for any construction company looking to invest in new projects or improve existing operations. However, many businesses in the industry may not have the necessary cash reserves to finance these ventures upfront, which is where refinancing can be a useful tool.

By refinancing their equipment and machinery, businesses can release equity to access the funds they need without having to disrupt their operations or take on additional debt that could impact their credit rating.

By refinancing, construction companies can also convert an adjustable interest rate to a fixed interest rate or take advantage of lower interest rates, lower monthly payments or shorten their repayment terms.

This allows them to free up cash flow, reduce debt, and focus on meeting client demands without any financial limitations holding them back.

What building and construction equipment can be refinanced?

Refinancing is available for vehicles, plant and machinery, whether currently on finance or not. This includes equipment such as excavators, bulldozers, loaders, dump trucks, cranes, and more.

In fact, most lenders will release up to 80% of the current equipment value into your business as working capital, allowing you to continue using the equipment as usual while using the capital to fund your projects or growth plans.

What are the different types of building and construction equipment refinancing? 

Equipment refinancing is a financial solution that allows businesses to release equity or to adjust their repayment terms. This process can be conducted through various equipment refinancing methods, including rate and term refinancing, consolidation refinance, and cash-out or cash-in refinancing.

Rate and term refinancing is where the original loan is paid off and replaced with a new loan with lower interest payments.

Consolidation refinance is a strategy used to combine multiple existing debts into a single, more manageable payment on a lower interest rate.

Cash-out refinancing offers businesses the option to refinance their equipment at a lower rate and take out additional cash that can be used for business expenses or investments. This is often used when assets have increased in value over time.

Cash-in refinancing lets the borrower make a payment towards their loan, resulting in a lower loan-to-value ratio or simply smaller monthly loan repayments.

What is the criteria for refinancing building and construction equipment?

The minimum amount you can refinance is £10,000.

You can refinance equipment that you already own and continue to use the equipment. Our lenders will have criteria regarding the age and condition of the equipment but there is no specific age limit to the equipment and vehicles that we can refinance.

You can also refinance equipment and vehicles if they’re already on finance, provided enough equity is available.

All equipment or vehicles must be based in the UK.

How Origin Finance can help

Refinancing can be a solution for contractors, sub-contractors, and those working in the construction industry who are looking to release equity tied up in machinery, vehicles, and other equipment, businesses can access working capital quickly and efficiently.

As experts in construction finance, we can save you valuable time by doing the heavy lifting in researching and connecting you with lenders, ensuring a smooth and time-efficient process.

We’ll guide you through the complex loan application process, using our experience to present your information in a favourable light to lenders.

We also have access to a wide range of lenders, with up to 50% of UK commercial lenders only accepting applications from brokers. This access can be vital if you’re looking to reduce your current interest rate.

Crucially, we’ll help to safeguard your credit rating by ensuring you apply only to the most suitable lenders, reducing the need for multiple hard credit checks.

Refinancing in the building and construction industry

If you are interested in exploring refinancing options, reach out to our team of experts who can provide a free no-obligation quote without affecting your credit score.