Asset refinance is a finance option which makes your current assets work harder for your business. You can use your current assets as collateral to open up some cash for your business.
Asset refinance involves an agreement where you sell the asset to your financing company for a price that is based on the current value of the asset. You then repay the amount loaned to you in instalments over a set amount of time. Asset refinance is similar to taking out a secured loan where you offer assets as collateral.
Title in the asset will rest with the lender but you’ll be able to use it as normal, whilst at the same time you will have freed up some cash too. When you have fully repaid your borrowed amount plus any fees associated with the finance facility, you regain full ownership of the asset.
What are the benefits of asset refinance?
Free up cash
Refinancing is a quick way to release funds into your business that are tied up in your assets.
Your asset(s) will be used as security against a loan amount, and funders are likely to look upon this favourably as it reduces risk for them of non-payment.
Freedom to choose
You are free to choose which assets to pick to refinance depending on your requirements.
Am I eligible for asset refinance?
Potential funders will need to know specific information about the asset you want to refinance. This is so they can accurately assess its value and come to an agreement on how much money they can offer you.
Tangible assets such as manufacturing machinery, construction, plant, and commercial vehicles can all be used as collateral for asset finance.
You may currently own assets that you don’t realise could be refinanced. A specialist in asset refinance can help you understand which of your assets are eligible for asset refinancing.
Asset Refinance: How PMD can help
At PMD, we believe that nothing should stand in the way of business growth.
When it comes to asset refinance, PMD has an unrivalled range of solutions and specialists, and can open up a number of flexible, independent and competitive funding lines to drive your business forward.
It’s our job to liaise with funders to ensure the best possible terms are secured, leaving you to focus on running your business. We can source facilities for almost any business asset.