Asset Refinance Solutions
At Davenham Asset Finance, we work hard to understand your needs and take care to structure the right asset finance deal for your business. Our innovative approach can unlock the value of existing assets to release cash for the further development of your business.
Asset Refinancing is the process by which you can use existing assets to raise additional capital for a variety of purposes. The assets can be free from finance or subject to an existing finance agreement with Davenham or another finance company, but would have sufficient equity.
By releasing capital tied up in fixed assets, we can help boost cash flow and stability for a client. Funds can be used to reduce existing liabilities or to restructure existing agreements and release the equity.
Asset refinance agreements can be provided on a finance lease or lease/hire purchase agreement.
Asset Refinance scenarios may include:
Purchasing other equipment: Some businesses may find that they cannot easily obtain asset finance for new machinery, but they could raise the funds by refinancing their existing assets (or by offering them as additional security).
Raising capital: A business can raise capital for expansion, without the need for outside investment.
Management buy ins/outs: Refinancing the assets of a business can raise capital to purchase another business or to aid the restructuring of your business.
To reduce existing monthly commitments: To spread the remaining balance of an existing finance agreement over a longer term (to reduce the monthly payments).
Working Capital Replenishment: To restructure existing borrowing.
What is Asset Refinance?
Asset refinance allows a business free up working capital by refinancing an asset which they already own, often being applicable to vehicles, equipment or machinery which was previously financed. This route has become so popular as it is an alternative to traditional types of financing which only offer finance on brand new machinery, equipment or vehicles - as it is available on assets a business is already using, there suddenly becomes available a large number of assets which can be used to free up working capital without having to purchase outright.