How asset and equipment refinancing frees up working capital for UK businesses

Summary: If your company owns plant, vehicles, machinery or other business equipment, refinancing those assets is a practical way to release cash tied to the balance sheet without losing day‑to‑day use. Common routes include sale & leaseback, refinancing existing hire‑purchase or finance leases, equity release against owned assets and consolidation or term extension. These options convert illiquid assets into working capital for materials, payroll, growth or sustainability projects, typically from £10,000 upwards. Complete a quick, no‑obligation enquiry and we’ll match you with lenders or brokers who can provide tailored quotes: Free Eligibility Check. The enquiry is not an application and will not automatically trigger a credit search.

What this guide covers

This page explains how asset and equipment refinancing works and the practical ways it can release working capital for UK companies with asset values of around £10k and above. You’ll learn:

• How different refinancing routes work (sale & leaseback, novation, equity release).
• How those routes convert assets into usable cash and improve monthly cash flow.
• Typical costs, timescales and risks to check before you proceed.

Get Quote Now — quick, no‑obligation matching to lenders and brokers.

What is asset & equipment refinancing?

Asset and equipment refinancing means restructuring the way your business finances its owned or financed equipment. It includes:

• Sale & leaseback — sell an asset to a funder and lease it back to keep using it.
• Refinancing or novating an existing hire purchase or finance lease to a new provider on better terms.
• Raising a secured loan or re‑mortgaging commercial property to release equity tied up in premises or installed equipment.
• Consolidating multiple agreements into a single facility to reduce monthly admin and cash burden.

In short: refinancing switches capital that’s fixed in assets into liquid funds you can use for operations, growth or one‑off needs. These are funding solutions arranged by lenders and brokers; if you want tailored quotes complete a short enquiry via our Free Eligibility Check.

How refinancing actually frees up working capital

The main ways refinancing converts assets into cash are practical and straightforward. Below are the commonly used mechanisms, with clear examples and what each typically achieves.

Sale & leaseback

How it works: you sell an owned asset (plant, machinery, vehicles) to a specialist funder and immediately lease it back under an operating or finance lease. You keep using the asset but receive an immediate lump sum.

• Why it frees capital: converts book value into cash while preserving operational capability.
• Benefits: large one‑off cash injection, predictable lease payments and potential off‑balance‑sheet treatment (depending on lease type and accounting rules).
• Illustration (example figures are illustrative): a machine bought for £100,000 now valued at £60,000 might release c. £50,000 net after fees — giving liquidity to cover materials or a new contract.

Refinancing existing hire purchase / finance lease

How it works: you transfer (novate) or refinance current agreements to a different lender who offers lower monthly payments, a longer term, or a consolidated facility.

• Why it frees capital: lower monthly instalments or a single, more manageable payment frees cash for operating needs.
• Benefits: simple cashflow relief, simpler administration and possible interest savings if market rates are favourable.

Equity release from owned assets or commercial property

How it works: owned equipment or property is used as security for a loan. Lenders value the asset and advance a proportion of that value as funds.

• Why it frees capital: unlocks equity otherwise tied up in the balance sheet; particularly effective for businesses with owned premises or high‑value equipment.
• Considerations: secured borrowing increases the risk of repossession if repayments are missed.

Consolidation and term extension

How it works: multiple asset finance deals or other debts are rolled into a single facility, often with an extended repayment period.

• Why it frees capital: lower monthly outgoings improve short‑term cashflow. Consolidation reduces admin and invoice churn.
• Trade‑off: longer terms can mean higher total interest – check the overall cost against immediate cash needs.

Who benefits — industry examples & mini case studies

Any business with material equipment can consider refinancing. Typical sectors that regularly use these solutions include:

• Construction — plant and excavators freed to finance new contracts or seasonal cash gaps.
• Manufacturing & engineering — CNC machines or presses released value to buy raw materials or hire seasonal staff.
• Hospitality & foodservice — kitchen fit‑outs and refrigeration refinanced to smooth seasonal revenue swings.
• Transport & logistics — fleets refinanced to upgrade vehicles or expand routes.
• Sustainability projects — solar, EV chargers or heat pumps can be refinanced to fund rollouts or net‑zero investments.

Mini case study 1 — Regional contractor
A regional builder with owned plant used a sale & leaseback to free £75,000 in cash to cover materials and labour for a large contract. Lease payments were aligned to project milestones, improving liquidity without interrupting operations.

Mini case study 2 — Manufacturing SME
A manufacturer refinanced several hire‑purchase agreements into one consolidated facility, reducing monthly payments by ~20% and freeing working capital to fund an urgent parts order that allowed them to meet delivery deadlines.

Typical process, documents & timescales

Most refinancing routes follow a similar sequence:

1. Quick enquiry and eligibility check (minutes to hours).
2. Document submission: asset details, ownership evidence, maintenance records, recent accounts and contact details.
3. Valuation and lender/broker proposal (24–72 hours for initial offers in many cases).
4. Acceptance, legal checks and completion — funds released after paperwork and any security registrations (commonly 7–21 days, depending on complexity).

Commonly requested documents: asset serial numbers, purchase invoices, current finance agreements, company accounts and proof of identity for directors. Want to see how quickly you qualify? Free Eligibility Check.

Costs, trade‑offs & what to check

Refinancing provides liquidity but carries costs and risks you should weigh carefully:

• Typical costs: arrangement fees, valuation fees, legal fees, and potential early‑settlement penalties on existing finance.
• Trade‑offs: extending term lowers monthly payments but increases total interest; sale & leaseback may increase ongoing operating costs via lease rentals.
• Risks: secured borrowing increases repossession risk; using an asset for security may restrict future borrowing; tax and accounting implications vary — consult your accountant for bespoke advice.

Checklist before you refinance: compare APR and total cost, check exit penalties on current agreements, understand lease type (operating vs finance), ensure valuations are independent and that any lender conditions suit your business plans.

How UK Business Loans helps

We introduce businesses to lenders and brokers who specialise in asset and equipment refinancing. We do not lend; instead we:

• Match your enquiry to partners with relevant sector experience.
• Arrange free, no‑obligation quotes so you can compare options quickly.
• Handle introductions confidentially — submitting an enquiry will not automatically trigger a lender credit search.

Ready to get matched? Get Started — Free Eligibility Check. The enquiry is secure and simply helps us find the best lender or broker for your needs.

Frequently asked questions

Will submitting an enquiry affect my credit score?

No. Submitting an initial enquiry via UK Business Loans does not affect your credit score. Partner lenders may undertake credit checks later if you progress an application — you will be told beforehand.

What assets can be refinanced?

Commonly refinanced assets include plant, machinery, commercial vehicles, printing presses, kitchen equipment and commercial property. Lenders assess age, condition and market value.

Our Business Finance Matching Process

Step 1

Complete Your Details

It takes just 1 minute on average to complete your business and contact details.

Step 2

We Match Your Business

With the best business finance broker or lender most suitable for your needs.

Step 3

You Get Free Quote + Advice

You receive a free quote along with complimentary expert financial advice.

It’s fast and free to get a quote from one of the UK’s leading finance brokers / lenders who will contact you directly with your quote/s.

Can I refinance if I have existing finance agreements?

Yes. Many businesses refinance by novating or settling existing agreements and replacing them with a new facility. Check early settlement penalties and factor fees into your comparison.

How long will refinancing take?

Timescales vary: initial eligibility checks can take hours, indicative offers often arrive within 24–72 hours, and completion typically takes 7–21 days depending on valuation and legal work.

Do you charge to match my business with lenders?

No — using our introduction service to get matched and receive quotes is free and without obligation.

Next steps & legal note

Refinancing can be a fast and effective way to free working capital while keeping the assets you need to operate. If you’d like tailored quotes and to be put in touch with lenders or brokers who specialise in asset and equipment refinance, start with a short enquiry: Free Eligibility Check. Submitting an enquiry is quick, confidential and not an application.

Contextual resource: For more detailed refinancing product information and examples, you may also find our guide to refinance loans helpful.

UK Business Loans introduces businesses to third‑party lenders and brokers. We do not lend or provide regulated financial advice. All funding is provided by third parties and subject to their terms and checks. Examples and figures shown are illustrative only; please seek specific accounting or tax advice if needed.

1. How does asset and equipment refinancing free up working capital for my UK business?
Refinancing converts illiquid plant, machinery, vehicles or property equity into cash—via sale & leaseback, secured loans or novation—so you keep using the assets while freeing funds for payroll, materials or growth.

2. What types of assets can be refinanced?
Lenders commonly refinance plant, construction equipment, commercial vehicles, manufacturing machinery, kitchen and refrigeration equipment, printing presses and commercial property, subject to age, condition and valuation.

3. How much cash can I expect to release through refinancing or sale & leaseback?
Typical deals start from around £10,000 and may release a significant proportion of an asset’s market value (for example c.50–90% of current valuation depending on asset type, age and lender criteria).

4. Can I refinance if I already have hire‑purchase or finance lease agreements?
Yes—many businesses novate or refinance existing hire‑purchase/finance leases into a new facility to reduce monthly payments or consolidate agreements, though you should factor in any early‑settlement penalties.

5. How long does the refinancing process usually take from enquiry to completion?
Initial eligibility checks can take minutes or hours, indicative offers often arrive within 24–72 hours, and completion (valuations, legal work and funds release) commonly takes 7–21 days depending on complexity.

6. What costs and fees should I budget for when refinancing assets?
Expect arrangement fees, valuation and legal fees, potential early‑settlement charges on existing finance and ongoing lease rentals or interest costs which together determine the total cost of borrowing.

7. Will submitting an enquiry through UK Business Loans affect my credit score?
No—making a free eligibility enquiry via UK Business Loans does not affect your credit score, though partner lenders may perform credit checks later if you choose to progress an application.

8. Who is eligible to use UK Business Loans to find asset refinancing options?
Sole traders, limited companies, LLPs, start‑ups and established SMEs across sectors (from construction and manufacturing to hospitality and logistics) can use our free introducer service to be matched with suitable lenders and brokers.

9. What are the main risks and trade‑offs of secured refinancing or sale & leaseback?
Risks include increased repossession exposure if repayments are missed, potential restriction on future borrowing, higher ongoing lease costs versus ownership and possible tax/accounting implications—so always compare total cost and seek professional advice.

10. How does UK Business Loans help me find the best refinancing deal and is it free?
We confidentially match your short enquiry to FCA‑regulated lenders and brokers with sector expertise, arranging free, no‑obligation quotes so you can compare options quickly without any charge or automatic credit search.