Quick answer — is refinancing a finishing line possible?

Short answer: yes, often it is. Converters frequently release capital tied up in finishing equipment to buy substrates, cover large print runs or stabilise working capital. Successful refinance depends on the finishing line’s market value, age, condition and whether there are existing security charges. Lenders will also assess business cashflow, turnover and the strength of the contract pipeline.

If you want a quick reality check, Get Quote Now — Free eligibility check and we’ll match you to brokers/lenders who specialise in printing equipment finance.

What is refinancing a finishing line?

“Finishing line” covers equipment used after printing: laminators, varnishers, die-cutters, slitters, rewinders, inspection systems and conveyors. Refinancing means raising funds by using that equipment as security or monetising its value so you can free cash without losing access to the machinery (or by selling and leasing it back).

Common models:

• Equipment refinance (a secured loan using the asset as security).
• Sale & leaseback (you sell the machine to a funder then lease it back — immediate cash while you retain use).
• Refinancing existing hire purchase agreements into a new facility.
• Business loans secured on multiple assets or property when single-asset value is limited.

Why label converters refinance finishing lines

Typical reasons include:

• Freeing working capital to buy substrates for a large contract.
• Buying inks, adhesives or packaging materials without disrupting operations.
• Bridging seasonal demand or a long client payment cycle.
• Consolidating higher-cost debt or managing urgent supplier payments.
• Funding maintenance or incremental upgrades while preserving cash reserves.

Example: a converter with a £200k substrate order may refinance a 4-year-old die-cutter to release £60k–£90k quickly to buy materials and meet delivery deadlines.

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Which finance options are suitable?

Asset (equipment) refinance

How it works: a lender advances funds based on a professional valuation of the finishing line. Loan-to-value (LTV) usually ranges from 40%–75% depending on age, model and demand. Valuation and inspection are required.

Pros: retains use of equipment; potentially lower cost than unsecured borrowing. Cons: asset becomes security; older machines attract lower LTVs and shorter terms (typically 1–5 years).

Sale & leaseback

How it works: a specialist buyer purchases the machine and leases it back to you. You get a larger immediate cash injection — often 60%–100% of the agreed value depending on the provider and machine.

Pros: can release a high proportion of value, preserves operational access. Cons: ongoing rental costs; may be tax- and balance-sheet-sensitive — speak to your accountant.

Secured business loan / portfolio asset finance

When one machine’s value is low, lenders may include multiple assets or property as security. Terms vary; this is useful if you need a larger sum (usually from ~£10,000 upwards).

Asset-based lending / invoice finance

If substrates will be paid for by customers on long terms, invoice finance can unlock cash against receivables to avoid touching equipment security.

Green or upgrade finance

If refinancing funds will be used to buy energy-efficient finishing equipment or reduce waste (thereby lowering operating costs), lenders may offer preferential terms via specialist green finance products.

Who provides these products? Specialist asset finance houses, independent funders and broker panels active in the printing and manufacturing sector. Costs vary widely — lenders will quote based on asset life, borrower credit, and security. We connect you to specialists who can give realistic, indicative quotes.

Costs and terms vary. We introduce you to lenders/brokers who will assess suitability and affordability for your business.

What lenders and brokers check

Underwriters focus on:

• Asset details: make, model, age, serial numbers, maintenance history and marketability.
• Condition & uptime: evidence of working order, recent repairs or refurbishments.
• Ownership & charges: clear title or knowledge of existing hire purchase/hire agreements.
• Financials: trading history, turnover, profitability and up-to-date management accounts.
• Cashflow: ability to service the new facility and any existing liabilities.
• Insurance & security: asset insured and protected; physical location and security measures.
• Director/owner profile: sometimes personal guarantees or credit checks are required.

Tips to improve approval odds: recent independent valuation, service/maintenance logs, purchase invoices, forward substrate contracts and clean ownership papers.

Red flags include disputed ownership, uninsurable equipment, heavy existing ranking charges or no trading history.

Typical process & timeline

1. Initial enquiry and brief — we match you to suitable brokers/lenders (often within 24–48 hours).
2. Document request — asset details, accounts, valuations and proof of ownership (typically a few days to gather).
3. Valuation and lender credit decision — 1–2 weeks, depending on inspection complexity.
4. Legal paperwork and completion — 1–4 weeks depending on whether existing charges need to be discharged.

Faster outcomes occur when you have clear asset paperwork, recent valuation, and up-to-date accounts. Start Your Enquiry — Free, no obligation

Pros, cons and tax considerations

Pros:

• Immediate liquidity to buy substrates and maintain production schedules.
• Often cheaper than overdrafts or emergency supplier credit.
• Operational continuity — you usually keep using the finishing line.

Cons:

• Loss of some ownership rights with sale & leaseback.
• Potential covenants and increased secured borrowing ranking.
• Rental or interest charges reduce future cashflow.

Tax note: sale & leaseback and hire arrangements have different accounting and tax implications (capital allowances, lease treatment). Consult your accountant to understand the specific effects for your business.

Common scenarios & worked examples

Example 1 — Equipment refinance

Finishing line: 4-year-old die-cutter valued at £120,000. Lender offers 60% LTV → ~£72,000 released. Funds used to buy substrates for a £200k contract; valuation and paperwork complete in 10 days; funds released after documentation in 2 weeks.

Example 2 — Sale & leaseback

Finishing line: high-spec slitter rewinder valued at £200,000. Sale & leaseback releases 70% of value (£140,000) and the operator signs a 3-year lease. Monthly lease cost is added to operating expenses but immediate working capital allows the business to accept new orders.

Numbers are illustrative — outcomes depend on lender appetite and accurate valuations.

How UK Business Loans helps

We introduce your business to specialist lenders and brokers experienced in printing and packaging finance. Submit a short enquiry and we’ll match you to partners who understand finishing equipment valuations, typical LTVs and the substrate buying cycle.

We aim to speed up the initial eligibility check so lenders can focus on valuation and legal steps. Our enquiry is quick to complete and not an application — it simply helps us find the best matches for your needs.

Find more about how we help printing businesses at our printing business loans page.

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Frequently asked questions

Can I refinance equipment that already has finance on it?

Possibly. Many lenders will refinance existing asset finance but will require details of the current agreement and any outstanding balances. A broker can check options and whether early settlement charges apply.

How much can I raise from a sale & leaseback?

Depends on the machine’s value and marketability. Typical release rates range from 50%–90% of the agreed sale price; specialist or newer equipment attracts higher percentages.

Will refinancing affect my future borrowing?

Refinancing creates secured obligations that lenders will consider on future facilities. It can improve short-term cashflow and credit metrics, but secured borrowing may reduce some future lender appetite depending on ranking and covenants.

How quickly can I get funds for substrates?

From initial enquiry to funds: typically 1–6 weeks. Simple refinance with clean documentation can complete within 2–3 weeks; complex legal or discharge requirements extend timelines.

Not sure which option suits you? Get a free eligibility check and we’ll connect you to specialists who can give indicative offers.

Next steps — ready to free cash for substrates?

Complete our short enquiry to receive a fast, no-obligation eligibility check and be matched to lenders and brokers who specialise in printing equipment finance. Typical deals start from £10,000 and upwards.

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