Release
cash with
Asset Refinance

What is asset refinance?

Asset refinance is a practical way to free up working capital tied up in your fixed assets, like machinery, vehicles and production equipment. You use your assets as collateral, receive a lump sum and repay the advance through monthly payments that fit your cashflow. You keep using the equipment throughout and when the agreement is paid off, ownership returns to you. It’s a simple way to use your assets as security to raise funds, giving you access to working capital without disrupting day‑to‑day operations. 

For many UK small businesses and growing SMEs, asset refinance can be a simpler route to business financing than applying for a new term loan or extending a business line of credit, especially when the value already sits in your equipment.

Asset refinance can be an efficient way to improve cashflow, manage seasonal pressures, consolidate debt, or support new investment without affecting existing banking arrangements. 

How asset refinance works (step by step)

Although it may sound complex, the process for refinancing your existing assets is surprisingly quick and easy: 

1. 1. Tell us which assets you’d like to refinance: Share details on the business equipment you’d like to finance: age, condition and current usage
2. 2. Asset valuation and underwriting: We assess the item’s working value and lender appetite. This involves standard underwriting checks (eg. credit history, credit score, affordability and asset details) 
3. 3. Offers and loan terms: We source options from our lender panel, typically with fixed rate facilities and loan terms from 12-84 months, with guidance on any arrangement/origination fee
4. 4. Funds disbursed: On credit approval, a lump sum is released to your business bank account. The asset serves as collateral, and you continue to use it.
5. 5. Keep using your equipment as normal whilst making monthly repayments: Your operations carry on as normal. Repay in installments (principal and interest), and once complete, ownership returns to you.

Good to know: Many lenders allow early repayment. Some charge a prepayment or prepayment penalty, others offer interest rebates. We’ll make sure the repayment terms are clear before you proceed.

What assets can be refinanced?

Many businesses underestimate the value of the equipment they already own. Common examples of assets that can be refinanced include: 

• Agricultural machinery
• Construction and plant equipment
• Manufacturing and production machinery
• Commercial vehicles and trucks
• Engineering tools and fabrication equipment
• IT equipment and specialist tech

If you’re unsure whether something qualifies, we can check for you. Many businesses are surprised by how much can be refinanced, including part-paid assets and those nearing a balloon payment.

How much cash can you release?

The loan amount depends on the current working value of the asset, not the original purchase price. Lenders typically advance a percentage of that value.

What affects the outcome?

• Asset type, age and condition
• Resale demand and depreciation
• Your credit history and annual revenue
• Existing finance or balloon payments

We’ll benchmark interest rates, loan terms and monthly payment options so you can choose what suits your business needs.

Who is asset refinance for? (Eligibility)

Most UK SMEs with valuable equipment may qualify. You’re likely to be eligible if: 

• You’re a UK business owner (Ltd, LLP, PLC)
• You own equipment with resale value, or have equity in a financed asset
• You can evidence affordability (Eg. tax returns, bank statements, business plan if needed)
• You’re comfortable with the asset acting as collateral and, in some cases, a personal guarantee

Credit history not perfect? We can still explore financing options. Lenders consider the asset, sector, business credit and overall affordability, not just a single credit score. Even if you’re still repaying an existing finance agreement, we can still explore options, including refinancing or raising additional cash. 

Benefits of asset refinance

Refinancing existing assets within your business comes with its own range of benefits suitable for a plethora of business owners and their needs: 

• Release working capital quickly without selling equipment
• Keep using the equipment throughout 
• Avoid taking on additional unsecured borrowing 
• Spread repayment installments to suit your cashflow 
• Refinance balloon payments of end of term agreements 
• Lower monthly costs 
• Avoid over-reliance on overdrafts of credit cards
• Use assets you already own to fund growth 
• Consolidate or restructure existing finance 
• Can be a faster alternative to new bank loans or unsecured routes

Why choose PMD for asset refinance?

We work with ambitious businesses who want clear, honest support when making financial decisions. With us, you’ll get: 

• We’re independent: PMD aren’t tied to a single lender. We’ll compare loan options across the market, from short-term loans to longer term-loan facilities, so the structure fits your cashflow.
• Straightforward process: From loan application, through to valuations and documentation, we’ll handle the heavy lifting to free up the time for you to focus on running your business.
• Clear pricing: We explain interest rate options (fixed interest rate vs variable interest), origination/arrangement fees, and any potential penalties or guarantees, so there are no surprises.
• Sector knowledge: From CNC machines to fleets, we understand the assets that keep your business moving and what lenders look for.

Ready to refinance your assets?

If you want to understand how much capital your assets could raise for your business, we’re on hand to help. Feel free to browse our asset refinance FAQs, or speak with one of our asset refinance specialists if you’d rather talk things through. 

We’ll walk you through your options and help you find the right way forward. If asset refinance isn’t right for you, we offer a range of other funding solutions, from business loans, invoice finance and even more complex finance packages.