Asset refinance raises funds against equipment your business already owns, or replaces existing finance on an asset with a new agreement. The lender advances a sum based on the asset’s value, secured against it, and you repay over an agreed term while continuing to use the equipment.
It is used to release working capital, consolidate an existing agreement, or restructure payments over a longer period. Where an asset is part-financed, some lenders will settle the existing agreement and refinance the balance, though this depends entirely on their assessment.
Be clear about the trade-offs. Spreading payments over a longer term generally reduces the monthly amount but increases the total interest paid. Refinancing an asset places security over equipment that may currently be unencumbered, so falling behind on payments could mean losing kit the business needs. Settling an existing agreement early may also carry a charge.
Lenders will want evidence of ownership, the asset’s age and condition, and your trading position. Whether refinance is offered, how much can be raised and on what terms are all subject to lender assessment and your individual circumstances.