Refinance equipment you already own to unlock cash — Equipment finance explained

Quick summary: If your company owns machinery, vehicles or specialist equipment, refinancing those assets can release working capital without selling them. UK Business Loans is an introducer — we do not lend or give regulated financial advice. We match businesses (loans/finance from around £10,000 and up) to lenders and brokers who can offer solutions. Get a free eligibility check and quotes from suitable partners.

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Table of contents

• Quick answer: Can I refinance equipment I already own?
• What is equipment (asset) refinance?
• Who can refinance equipment?
• Typical refinance options — pros, cons & costs
• How the process works with UK Business Loans
• What lenders will check — documents & valuation
• Common risks & pitfalls
• When refinancing may be better than other routes
• Short examples / case studies
• FAQs
• Ready to unlock cash? Final steps

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Quick answer: Can I refinance equipment I already own?

Yes — in many cases businesses can refinance equipment they already own to unlock cash. It’s commonly possible when the business has clear ownership or equity in the asset, the item retains resale value, and lenders/brokers are satisfied with the business’s trading history and affordability.

• Typical eligibility: equipment owned outright (or with manageable outstanding finance), value usually significant enough to support a loan (we work with loans from c.£10,000 upward), and businesses with trading history and accounts.
• Not always possible: heavily worn, obsolete, or very specialised kit with low resale markets may not support favourable refinance terms.

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What is equipment (asset) refinance?

Equipment (or asset) refinance means using plant, machinery, vehicles or specialist equipment you already own as security to raise cash. This differs from purchasing new kit using asset finance — it’s about releasing value from existing assets.

Common methods:

• Secured business loan against the asset — a lender advances cash secured on the equipment.
• Asset-backed loan — similar to a secured loan but often structured for higher-value or specialist assets.
• Sale and leaseback — you sell the equipment to a finance company and lease it back, freeing capital while keeping use.
• Refinance of existing HP/lease — replacing an existing high-cost hire purchase or lease with cheaper funding to release equity or reduce monthly payments.

Benefits include improved cash flow, retained use of equipment, and the potential to consolidate expensive finance. Example: a construction firm converts part of a machine’s value into working capital while continuing to use the machine on site.

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Who can refinance equipment?

Typically limited companies and established businesses with a track record can refinance equipment. Lenders assess both the asset and the business behind it.

Key qualifying factors:

• Ownership — clear title or the ability to settle existing finance.
• Asset condition & market — age, wear, maintenance history and resale value.
• Sector and asset type — mainstream equipment (construction plant, HGVs, medical imaging, catering gear) is easier to refinance than highly niche one-off items.
• Business strength — turnover, profitability, trading history and bank statements.

Quick readiness checklist: ownership docs, purchase invoice, maintenance logs, photos/serial numbers, trading accounts, bank statements and any outstanding finance agreement details.

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Typical refinance options — pros, cons & costs

Secured business loan against the asset

Short description: Loan secured on the equipment’s value.

• Pros: Often quick to arrange, retains equipment use, clear lump-sum cash.
• Cons: Asset at risk if you default; interest and arrangement fees apply.
• Typical terms & costs: Terms vary (1–5+ years); rates depend on lender, asset and business profile.

Sale & leaseback

Short description: You sell the equipment to a funder and lease it back under a rental agreement.

• Pros: Releases up to a large portion of the asset’s market value; you keep using the asset.
• Cons: Long-term rental cost may be higher; you no longer own the asset.

Refinance existing hire purchase or lease

Short description: Replace expensive HP/lease with better terms or consolidate into a business loan.

• Pros: Can reduce monthly costs or release equity.
• Cons: Early settlement penalties may limit benefits; lenders need full contract details.

Specialist asset refinance brokers

Short description: Brokers who specialise in converting asset value to cash across multiple lenders.

• Pros: Access to multiple solutions, expertise in valuations and niche assets.
• Cons: Fees may apply, and time to source the best offer can vary.

Note: Examples above are illustrative — exact rates and availability depend on lender criteria.

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How the process works with UK Business Loans

Here’s the step-by-step when you use our service:

1. Complete a short enquiry form — we ask a few business and asset details (takes about 2 minutes).
2. We match you — your details are shared only with selected lenders/brokers who specialise in equipment refinance.
3. Receive offers — lenders/brokers contact you with eligibility feedback and indicative terms.
4. Choose & progress — pick the best offer and proceed directly with the lender/broker who will carry out valuation, legal checks and funding.

Benefits: quick matching, no-cost enquiry, and responses typically within hours during business hours. We only introduce you to partners; lenders make final lending decisions.

Get Started — Free Eligibility Check

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What lenders will check — documents & valuation

To assess a refinance request lenders typically ask for:

• Proof of ownership or existing finance statements (HP/lease), purchase invoice
• Photographs, serial numbers and maintenance records
• Business accounts, VAT returns (if applicable) and bank statements
• Director ID and proof of address

Valuation methods include desktop valuations (market comparable), broker inspections or physical appraisal for high-value or specialist assets.

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Common risks & pitfalls

• Undervaluation: a low valuation reduces how much cash you can access.
• Early settlement charges: HP and lease contracts can carry penalties that negate refinancing benefits.
• Obsolescence: old or specialised equipment may be expensive to refinance or attract higher rates.
• Repossession risk: secured lending means the asset could be repossessed if repayments stop.

Practical tips: obtain an independent valuation if possible; request full early settlement figures before committing; compare multiple offers and read repossession and maintenance covenants carefully.

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When refinancing may be better than other routes

Refinancing often suits businesses that want to:

• Unlock cash but continue using the equipment (vs selling and losing use).
• Replace higher-cost finance with a cheaper facility or consolidate multiple debts.
• Preserve working capital while investing in growth or covering an urgent cash need.

Alternatives include business loans, invoice finance, or selling and replacing equipment — weigh cost, speed and the importance of keeping asset use.

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Short examples / case studies

Construction contractor: Owned a 7-year-old excavator with equity after repaying most of its HP. A sale & leaseback released £50k to cover site deposits; contractor continued using machine on a 36‑month lease.

Dental practice: Refinanced imaging equipment to free £30k capital for a refurbishment. Lender provided a secured loan with a manageable term and monthly repayments aligned to cashflow.

Outcomes vary by asset, condition, and business profile; examples are illustrative only.

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Frequently asked questions

Can I refinance equipment if it’s partly financed already?
Yes — many lenders can refinance existing HP/leases, subject to early settlement figures and terms. Sometimes a consolidation or sale & leaseback is used instead.

How quickly can I get funds?
Initial matching and responses often come within hours. Full approval and funding typically require days to a few weeks depending on valuation and legal steps.

Will refinancing affect my credit score?
Submitting an enquiry with UK Business Loans does not affect your credit score. Lenders may perform credit checks if you apply, which could show on your file.

Are there tax implications?
There can be. Sale & leaseback, for example, changes ownership and may affect capital allowances. Speak to an accountant or tax adviser for specific guidance.

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Ready to unlock cash from equipment? Final steps

If you want to explore equipment refinance options, complete a short, free enquiry and we’ll match you with lenders and brokers experienced in asset refinance. Submitting an enquiry will not affect your credit score and there’s no obligation to proceed.

Free Eligibility Check — Get Quote Now

Important: UK Business Loans is an introducer — we do not lend or give regulated financial advice. We connect businesses with lenders and brokers who may provide finance subject to their terms and credit checks. Representative rates and terms will be supplied by lenders/brokers after they review your details.

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Related resources

• Asset finance overview
• Business loans UK
• How UK Business Loans works
• Contact us

Need tailored equipment finance advice? If you want to consider buying new kit instead, check our equipment finance options and compare both routes — equipment refinance and new equipment finance are different but complementary solutions.

Privacy & security: your details are handled securely and shared only with selected lenders and brokers who may help with your request. For full terms see our Privacy Policy and Terms & Conditions.

– Can I refinance equipment I already own to unlock cash?
Yes — many businesses can refinance owned equipment if there’s clear title or equity, acceptable resale value and a suitable trading history, and UK Business Loans can match you with lenders who offer this.

– How much can I borrow against equipment?
Typical refinance amounts start around £10,000 and the maximum depends on the asset valuation, age, condition and each lender’s criteria.

– How quickly can I get funds after applying for equipment refinance?
Initial matches and responses often arrive within hours, but full approval and funding typically take days to a few weeks depending on valuation, legal checks and lender processes.

– Will submitting an enquiry affect my credit score?
No — submitting a free eligibility enquiry with UK Business Loans does not affect your credit score, although lenders may perform credit checks if you proceed with an application.

– What documents will lenders need to refinance my equipment?
Lenders usually request proof of ownership or HP/lease statements, purchase invoices, photos/serial numbers, maintenance records, business accounts and recent bank statements.

– Can I refinance equipment that already has finance on it (HP or lease)?
Sometimes — lenders may refinance existing hire purchase or lease agreements subject to early settlement figures, valuations and any break penalties.

– What is sale & leaseback and when might it be suitable?
Sale & leaseback lets you sell equipment to a funder and lease it back to release a large portion of its value while retaining use, which is useful for unlocking working capital but means you no longer own the asset.

– How are equipment valuations carried out for asset refinance?
Valuations can be desktop comparisons, broker inspections or physical appraisals for high-value or specialist kit and directly influence how much cash lenders will advance.

– Are there tax or accounting implications when refinancing equipment?
Yes — transactions like sale & leaseback or changing ownership can affect capital allowances and balance sheets, so consult an accountant or tax adviser for tailored guidance.

– How does UK Business Loans match me with lenders and is the enquiry an application?
You complete a short, free eligibility check (not a loan application) and we share your details only with selected FCA-regulated lenders and brokers who will contact you with suitability feedback and formal offers if you choose to proceed.