Refinancing is the process by which a client can use their existing assets to raise additional capital for a number of purposes, these assets can be unencumbered (free from finance). Alternatively, the assets could be subject to an existing finance agreement with a finance company but would have sufficient equity to allow a refinance.

By releasing capital tied up in fixed assets we can help improve cash flow and stability for a client. Funds can be used to recover from bad debt, improve cash flow, reduce bank overdrafts or to restructure existing agreements and release the equity. The injection of working capital can fund expansion of the business or to fund management buy ins/outs.
We can also arrange a refinance agreement to fund a large ‘balloon rental’ due or to become due on an existing agreement (generally on prestige and sports cars).

Refinance agreements can be provided on a Lease/Hire Purchase or Lease agreement, they are often referred to as  “Sale and Leaseback” or “Sale and Lease Purchase Back”.

Some of the reasons to refinance may include:

• To reduce existing monthly commitments byspreading the remaining balance of an existing finance agreement over a longer term
• Bad debt provision, to recover from a Bad Debt or to reduce bank borrowing (i.e. overdraft).
• Management buy ins/outs, refinancing the assets of a business can raise capital to purchase another business or to aid the restructuring of the business.
• Raising Capital, a business can raise capital for expansion from their existing assets without outside investment.

• Purchasing new equipment, businesses may find that they cannot easily obtain asset finance for new machinery, but can raise the funds by refinancing their existing assets (or by offering them as additional security).