It is possible to refinance existing plant and machinery in order to release cash for any purpose ( within reason ) Provided there is equity within your plant and machinery there are a number of finance companies that will advance cash via a sale and lease back or sale and hire purchase back agreements. And provided your business isnt on the verge of going bust you can release cash for most purposes including providing a deposit for a new machine , paying crown arrears of provided working capital to nge better payment terms with your suppliers
However refinancing existing plant and machinery is a very specialist area which the high street banks and leasing companies have absolute no experience or appetite. There are probably only about half a dozen leasing company in the UK that provide such a facility. As it s a specialist area funding comes at a premium so you can expect to pay slightly higher interest rates than you would get via the bank. However with the banks still being difficult when it comes to obtaining funding asset refinance is a viable option for many businesses. Not all types of assets are suitable security and as such it is worth getting an idea of the value of your equipment before spending allot of time and effort providing financials etc. The types of equipment and machinery that are suitable are large chunky items such as printing, packaging engineering, commercial vehicles, coaches, yellow plant and basically any equipment that has a good residual value in the second hand market. Anything that is bespoke to a business tends to struggle to stack up even though it may have initially cost a considerable amount initially.
XL Business Finance will use over ten years experience to get the best possible valuation for asset refinance. Different finance companies have different areas of expertise and we know which one will provide the best possible values for whatever kit it is that your are looking to release cash against
