Asset refinance for UK limited companies
Asset refinance releases working capital from plant, vehicles, or commercial equipment you already own. The most common route in the UK SMB market is sale and leaseback against owned commercial vehicles and CNC plant; the equity in your balance sheet becomes cash without losing operational use.
Asset refinance FAQs
What is asset refinance?
Asset refinance is releasing capital from assets you already own (or are partway through paying for) by raising new finance secured on those assets. Common routes are sale and leaseback (you sell to the finance company, lease back operational use), refinance of an existing facility (extending the term or topping up against equity built up), or capital release against unencumbered plant or vehicles.
Which assets can be refinanced?
Most identifiable, tangible plant: cars and commercial vehicles, HGVs, plant and machinery, CNC and manufacturing equipment, agricultural machinery, broadcast and AV equipment, IT hardware over a certain residual value, and in some cases yellow plant or commercial fit-out. Soft assets (intangibles, leased property) generally cannot be refinanced this way.
How much can I raise against an asset?
Typically 70% to 90% of current market value (not original cost), with the LTV varying by asset class, age, and lender. CNC and HGV: 70 to 80% common. Cars: 70%. New plant within 24 months: up to 90%. The lender will commission an inspection or rely on Glass's Guide for vehicles.
How long does asset refinance take?
Decision in 24 to 72 hours, drawdown in 7 to 14 days for clean files. Slower if the asset needs physical inspection or the title is held by a previous finance company that needs settling.
What is the difference between sale and leaseback and refinance?
Sale and leaseback transfers legal title to the finance company; you operate the asset under a lease. Refinance leaves title with you and registers a charge or fixed financing against it. Sale and leaseback usually releases more cash; refinance keeps the asset on your balance sheet.
To get matched to specialist asset-refinance lenders, use the eligibility checker. We route to limited companies, LLPs, and partnerships of 4+ only.