Every pound spent outright on equipment is a pound that stopped being flexible, and capital release is how some of that flexibility is recovered.
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Capital release describes raising cash against equipment a business already owns, without selling it away or bringing in an investor. A funder buys assets held free of finance at an agreed trade value and hires them back, so the business keeps operating unchanged while the proceeds become available as capital. It is not a loan secured on property and it does not involve giving up shares. The amount available depends on what the assets would realise second hand, and funders will want a credible explanation of what the released capital is going to be used for.
Used kit: Yes — mature assets release capital perfectly well, provided they are genuinely owned and there is an active trade market willing to buy them on.
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Business asset finance is quoted on a flat rate, so that is what this shows — with the equivalent APR underneath, because the two are not the same number. A quick guide only; your actual rate depends on the asset, term, deposit and lender.
Representative example: on Hire Purchase, borrowing £25,000 over 48 months at a 6.0% flat rate (equivalent to 11.5% APR representative), you would repay around £646 a month; total amount repayable approximately £31,000, of which £6,000 is the cost of finance. This calculator is for illustration only — it is not a quote or an offer of finance, and the rate and repayments you are offered will depend on the asset, term, deposit and your circumstances. CW Asset Finance is a credit broker, not a lender, and may receive a commission from the lender that funds your agreement. All finance is subject to status, affordability and lender approval. CW Asset Finance is an Appointed Representative of Rural Finance Limited, which is authorised and regulated by the Financial Conduct Authority (FRN 630701).
Funders approach capital release more carefully than a straightforward equipment purchase, because there is no new asset entering the business to show for the money. They start with proof of ownership — invoices, payment evidence, serial numbers — and confirmation that no debenture or existing agreement bites on the equipment. Then they test the story. A capital release tied to a named, dated, evidenced use of funds is fundable. A vague request for general working capital invites questions, and a request that appears to be covering a structural trading loss will be refused, because refinancing does not fix a business that is losing money. Valuations are conservative, reflecting trade disposal rather than replacement cost. Because the assets formally leave your ownership, your accountant should review the treatment before you proceed.
Examples of the machines we are asked to fund. This is not an exhaustive list — if what you are buying is not here, it does not mean we cannot fund it. Your supplier quote is what the agreement is written against.
| Machine | What it is |
|---|---|
| Terex Finlay J-1175 jaw crusher | Tracked jaw crushing plant |
| Powerscreen Warrior 1400 screen | Tracked screening plant |
| Trumpf TruBend press brake | Fabrication press brake owned outright |
| ESAB welding plant and positioners | Fabrication workshop welding equipment |
| Gray & Adams refrigerated trailer | Owned refrigerated trailer |
| Schmitz Cargobull reefer trailer | Temperature controlled trailer |
| Heidelberg Speedmaster XL 75 | Sheetfed printing press owned outright |
| HP Indigo 12000 digital press | Digital printing press |
| JCB 540-140 Loadall fleet | Owned telehandler fleet |
| Wood-Mizer LT70 sawmill | Timber processing line owned outright |
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Commonly a founder-owned business facing a decision it cannot fund from trading: buying out a retiring shareholder, taking on a larger unit, or bidding for work that requires proof of resources. Selling equity feels expensive and property borrowing feels slow, so the owned asset base becomes the obvious place to look.
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Bought on hire purchase, business plant and machinery normally qualifies for capital allowances on the full cost even though you pay for it monthly, which is a large part of why hire purchase is the common structure. On a finance lease you generally set the rentals against profit instead. The rules change between budgets and your position depends on how you trade, so treat this as the direction of travel and get your accountant to confirm the detail before you commit.
No. A secured loan leaves you owning the asset with a charge registered against it. Capital release through refinance involves actually selling the asset to the funder and hiring it back, which is a different legal structure and a different set of accounting consequences.
Often, particularly for owner-managed businesses. Requirements vary by funder and by the strength of the accounts, and it is one of the things worth comparing across offers rather than accepting from the first one you see.
It uses up some of the value in your asset base, so yes, in the sense that the same equipment cannot be used twice. It may also affect covenants with an existing lender, so check your facility letters before proceeding.
It makes things harder but not always impossible. A single bad year with a clear explanation and a recovered current position can still be funded. A pattern of losses combined with a request for cash tends to be declined regardless of how good the equipment is.
Yes, and it is one of the cleanest uses to present. Funders understand a business that wants to convert idle equity into productive capacity, and the new purchase itself may be fundable separately alongside it.
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See everything we fund in asset refinance and sale and leaseback →
Not an offer of finance. All finance is subject to status, affordability and lender approval.
Tell us what you’re looking to fund and Conor will come back to you personally — usually the same day.
Prefer to talk? Call 07581 364281 · serving Leeds, York, Harrogate, Wakefield, Selby, Tadcaster & across North & West Yorkshire.