Asset Refinance: The 3 R’s

Is cash flow a problem for your business? Asset refinance might be the solution.

Pressure on the cash reserves of SMEs up and down the country is escalating daily. As we move on in 2023, businesses are faced with increasing fuel and energy costs as well as soaring supply prices and record high inflation. Consequently, there is arguably going to be a greater need for businesses to review their current financial position and consider different ways to ensure their company has enough cash available. This is important to keep the wheels turning, whilst adapting to what is going to be the ‘new normal’ for the foreseeable future. Asset refinance could be a great way for your business to increase working capital through existing business assets.

Could your company’s assets provide answers?

The number of businesses using asset refinance as a funding tool has seen an increase over recent years. However, there are many company owners and directors who aren’t aware that their firm’s vehicles, plant/machinery and equipment could be the key to solving or reducing cash flow worries. All without restricting the ability to use those assets.

There’s no need to sell assets in order to make use of their cash value. That’s where asset refinance comes in. Asset refinance is a way to unlock the equity that’s tied up within those assets and make use of it when your business needs it the most.

Are your assets currently being financed by a lease or hire purchase agreement? If so, not to worry! Refinance could be a way to consolidate those debts. In many cases, you’ll be able to reduce your monthly payments by doing so too. Asset refinance can provide both an immediate and an ongoing solution by injecting working capital straight away and reducing the monthly outgoings of your company.

The ‘3 Rs’ of Refinance

A simple way to find out whether asset refinance is an option for you is to consider what we call the ‘3 Rs’ of refinance. Review, release, reduce.


  • What vehicles, equipment and/or machinery does your company use and operate?
  • What are they worth?
  • How much equity are they holding?
  • Which assets are being financed and which are unencumbered?


  • If your company’s ‘hard assets’ hold sufficient equity, an asset refinance facility will allow you to unlock that value and deposit cash into your business’ bank account. This can usually complete within a matter of days.
  • Hard assets can include cars, vans, trucks, machinery, construction equipment etc.
  • Asset refinance facilities can be structured to suit the needs of your specific situation. This can include manageable payments and seasonable adjustments.


  • If you have assets that are currently under a lease or hire purchase agreement, then they’re also eligible for asset refinance.
  • By consolidating one, two or multiple agreements, monthly payments can see a significant reduction. This is on top of the boost of a lump sum injection of working capital.

Asset refinance not for you?

Looking for alternative finance options to secure funding or increase the cash flow of your business? PMD Business Finance can also facilitate:-

  • Asset Finance transactions for all forms of commercial vehicles, trailers, specialised vehicles, plant, machinery and equipment
  • Invoice Finance to release cash tied up in your debtor book – a much more flexible cash flow tool than an overdraft
  • Commercial property funding, including refinancing your existing property to release cash
  • We can support you with the sale of your business, through trade sale, MBO or to acquire another business. Through our panel of advisers, we can support the transaction and provide the funding required.


For more information on our full service offering, get in touch on 0161 633 2548 or email us at Alternatively, why not keep up to date with the latest industry news, job vacancies and company updates via our LinkedIn.

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