How refinancing print equipment works

Refinancing means replacing one finance agreement with another to change the payment profile, interest rate, ownership timing or lender. For printers this typically involves one of the following:

• Paying out the existing contract in full (settlement) and taking new asset finance with another lender.
• Consolidating several small agreements into a single facility with one monthly repayment.
• Novating a lease (with vendor and lender consent) so a new lender takes on the obligation.
• Extending the finance term to reduce monthly payments, or refinancing into a loan to own outright earlier or later depending on structure.

Example: a digital press on Hire Purchase with 36 months remaining might be refinanced to a new 60‑month asset finance deal. The monthly payment falls, improving cashflow, but total interest paid rises and you should compare the settlement fee against the monthly saving.

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Which printing agreements can usually be refinanced?

Not every contract can be refinanced easily. Common outcomes:

• Hire Purchase (HP) — usually refinancing is straightforward because ownership transfers on final payment. Lenders will provide a settlement figure and most HPs can be paid out.
• Finance Lease / Conditional Sale — often possible, but you may need the lessor’s consent or to pay a settlement figure specified in the contract.
• Operating / Service Leases — harder to transfer. Contracts that bundle maintenance or supplies may include restrictions or penalties for early exit; sometimes novation is required.
• Vendor finance — can be refinanced by paying out the vendor or arranging a novation via a broker, depending on contract terms.
• Multiple small contracts — consolidation is commonly available and can reduce admin and monthly burden.

Exact options depend on the contract terms. A broker or lender will want to review the original agreement before recommending a route.

Benefits and drawbacks of refinancing printing equipment

Benefits

• Lower monthly outgoings — refinancing to a longer term or lower rate usually reduces the monthly payment.
• Improved cashflow — freeing up funds for consumables, staffing or investment.
• Consolidation — one repayment instead of several makes cash management easier.
• Upgrade opportunity — some arrangements allow trade‑in or refinance into new equipment finance.
• Potential tax advantages — dependent on structure; discuss with your accountant.

Drawbacks / Risks

• Settlement / early termination fees — these can reduce or eliminate short‑term savings.
• Higher total cost — stretching repayments lowers months but increases total interest paid.
• Credit and affordability — formal refinancing applications will include checks.
• Accounting impacts — lease classification affects the balance sheet; seek professional advice.
• Depreciation / negative equity — if equipment value is low it may be hard to refinance at favourable rates.

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Typical refinancing products for print businesses

Print businesses commonly use these products to refinance equipment:

• Asset refinance / refinance loan — lender provides a loan secured against the equipment to pay the existing creditor.
• Hire Purchase refinancing — new HP to replace an existing HP with better terms.
• Lease reassignment / novation — transfer of lease to a new finance provider where permitted.
• Business loan consolidation — unsecured or secured business loan to clear multiple equipment contracts.
• Invoice finance + asset refinance — combine working capital and asset refinance for larger restructuring.

Which product suits you depends on equipment value, remaining term, desired ownership point and company finances.

What lenders and brokers will check

To assess refinance options, expect a lender or broker to request:

• Original contract type and current settlement figure
• Remaining term and current monthly payment
• Age, model, condition and market value of the equipment
• Company trading history, turnover and profitability
• Director credit history (personal guarantees are common)
• Existing security (charges or debentures on company assets)

Transparency speeds up the process: have agreements and accounts to hand.

How to prepare before you enquire

Being ready will produce quicker, more accurate quotes.

1. Gather original agreement(s) and latest settlement figures from your finance provider.
2. Photograph equipment and note make/model/serial number; get a valuation if possible.
3. Prepare 12–24 months of bank statements and the last 2 years’ accounts.
4. Outline why you want to refinance (lower monthly, consolidation, upgrade).
5. Decide preferred outcomes (monthly reduction, fixed repayments, shorter term).
6. Speak with your accountant about tax or balance sheet impacts.

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Typical costs & pricing you should expect

Common cost components to compare:

• Settlement figure/early termination charges with the existing provider.
• Arrangement, administration and valuation fees from the new lender.
• Interest rate and APR — compare total cost over the proposed term, not just monthly payments.
• Legal fees for lease novation or title changes.

Simple example: current HP monthly £2,000 with 36 months left = total outstanding £72,000. Refinancing to £1,500/month over 60 months reduces monthly outgoings by £500 but increases total interest paid. Ask for a payout comparison showing settlement cost, new fees and total interest to make an informed decision.

Step-by-step: Refinance process when working with UK Business Loans

How we help you navigate refinance:

1. Complete a short online enquiry (takes ~2 minutes) — this is not a formal application.
2. We match your business with lenders and brokers experienced in print equipment finance.
3. A broker reviews your documents and provides eligibility and indicative terms.
4. You choose an offer; the broker/lender submits a formal application and arranges settlement.
5. New lender settles the old agreement and you start new repayments under agreed terms.

UK Business Loans is an introducer — we do not provide finance ourselves. Our service is free to use and no obligation. If you proceed, lenders/brokers may perform credit checks.

FAQs

Can refinancing always reduce my monthly payment?

Not always. Extending the term usually reduces the monthly payment but can raise the total interest. Settlement fees on the existing contract may offset savings — always request a full comparison of totals and monthly amounts.

Will refinancing affect my credit score?

Making an initial enquiry with UK Business Loans does not affect your credit score. Lenders/brokers will only run credit checks if you proceed with a formal application, which may show as a hard search.

What happens if my lease has a no-transfer clause?

Some operating or service leases restrict transfers. In those cases you may need to negotiate an early termination with the vendor or explore alternative solutions such as consolidation or refinancing other assets.

Can I refinance equipment older than five years?

Older equipment can be harder to refinance because of lower residual value. Some lenders will still consider it, particularly if the asset is in good working order, has a long remaining working life, or you can provide recent valuations.

Are there tax implications?

Tax treatment depends on the structure (loan vs lease) and your company’s accounting. Speak with your accountant to understand capital allowances, VAT and balance sheet impacts before finalising a deal.

How long does an application take?

Indicative offers can arrive within hours; formal applications and settlements normally take a few days to a few weeks depending on document turnaround and whether third‑party valuations or legal work are needed.

When refinancing may not be the right choice

Refinancing isn’t always the best option if:

• There are only a few months remaining on the existing agreement and early settlement costs are high.
• Your company has a recent poor trading record — approval may be difficult or expensive.
• You would incur greater total cost with only marginal monthly benefit.
• Vendor negotiations can secure better service or rate reductions without a refinance.

Ready to see if refinancing can lower your monthly costs?

Get a free, no‑obligation quote from lenders and brokers who specialise in equipment finance for printers. Our quick enquiry helps us identify the best matches — it’s free and only takes a couple of minutes.

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By submitting your enquiry you consent to us sharing details with selected lenders and brokers so they can contact you with quotes. This is not a loan application.

Related resources & internal links

• Asset finance
• Equipment finance
• Refinance options
• printing business loans (industry overview)

Authoritative external guidance:

• FCA guidance on financial promotions
• GOV.UK business finance support

Contact & legal / compliance note

UK Business Loans acts as an introducer — we do not lend money or provide regulated advice. We connect limited companies and established businesses (typically from around £10,000 finance value and upwards) with lenders and brokers who can provide tailored terms. Always review full terms, ask for a payout comparison and consult your accountant or solicitor for tax or legal implications.