Unlocking cash from plant and machinery you already own

Many businesses own valuable equipment outright — machinery, vehicles, plant — bought from cash flow over the years. That equity sits on the balance sheet doing nothing. Asset refinance lets you borrow against it, releasing cash for almost any business purpose while you keep using the equipment.

How it works

The lender values the equipment, advances a proportion of that value, and takes security over the assets. You repay over an agreed term, typically matched to the remaining useful life of the kit. Because the security is a tangible, valued asset rather than a property, the process is usually simpler and quicker than a mortgage.

What can be refinanced

Assets with a clear resale market are the easiest to lend against: construction plant, agricultural machinery, commercial vehicles, manufacturing equipment and the like. Specialist or bespoke equipment can still be financed, but expect a more conservative valuation. Assets that are already on finance can sometimes be refinanced once the existing agreement is settled.

What lenders look at

Alongside the asset itself, lenders consider the business: its trading history, its accounts and its ability to service the new repayments. A valuation and a check that the assets are unencumbered are standard. With clean paperwork, a facility can often be arranged within days rather than weeks.

Uses that make sense

Releasing capital from equipment is often used to fund growth, smooth seasonal cash flow, pay a large tax bill or settle more expensive short-term borrowing. It also works alongside property finance: capital released from plant can help a trading business find the deposit for a premises purchase.

Things to weigh up

Refinancing turns an owned asset into a secured one, so it is worth being clear about why the cash is needed and how the repayments fit the business's cash flow. Compare the cost against the alternatives, and make sure the term does not outlast the equipment.