Capital release
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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Can you finance a capital release?
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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What would a capital release cost per month?
Asset finance is quoted on a flat rate, so that is what the buttons show, with the equivalent APR beside it. Your exact rate depends on the asset, the term, the deposit and the lender.
Prime is an established, profitable business with clean credit. Specialist covers newer businesses and credit that needs explaining — the asset itself carries part of the risk, which is why finance is often available where an unsecured loan is not.
Representative example: on Hire Purchase, borrowing £25,000 over 48 months at a 5.15% flat rate (equivalent to 9.9% APR representative), you would repay around £628 a month; total amount repayable approximately £30,150, of which £5,150 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 will receive a commission from the lender that funds your agreement. All finance is subject to status, affordability and lender approval.
Rates shown are indicative flat rates with the equivalent APR alongside — the two are not the same number. Indicative only and does not constitute a quote or an offer of finance. Subject to status and lender approval.
How lenders treat it
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.
Makes and models we fund
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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Who buys one
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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How it is treated for tax
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.
Capital release questions
Is this the same thing as a secured business loan?
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.
Will I have to give personal guarantees?
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.
Does releasing capital hurt our borrowing capacity elsewhere?
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.
What if the business has had a poor trading year?
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.
Can released capital be used to buy more equipment?
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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Also in asset refinance and sale and leaseback
- Plant refinance
- Production equipment refinance
- Commercial vehicle refinance
- Agricultural machinery refinance
- Handling equipment refinance
- Mixed asset portfolio refinance
- Sale and leaseback
- HGV fleet refinance
- Machine tool refinance
- Hire fleet refinance
- Equity release on plant
- Refinance to fund growth
- Refinance for a VAT bill
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.
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Tell us what you’re looking to fund and Conor will come back to you personally — usually the same day.
Prefer to talk? Call 0333 772 4864 · serving Leeds, York, Harrogate, Wakefield, Selby, Tadcaster & across North & West Yorkshire.