Asset Refinance Agreements
Asset Refinance, sometimes referred to as Sale and Lease back, or Sale and HP back, is an arrangement that allows your business to sell business assets and equipment to a lease company for a lump sum and then leases the asset back for an arranged monthly amount.
For businesses looking to grow sustainably and unlock the value of their existing assets, refinance agreements are a useful facility, enabling access to cash while retaining the use of their equipment and machinery.
If your business has a requirement for cash quickly, a hire refinance plan could be just what you need. However, it’s crucial to understand the advantages and drawbacks of a refinance plan before making the choice.
Find out more about asset refinance here, or contact us to discuss your specific requirements and find out whether a refinance agreement is right for you.
Need help? Call us on 0191 410 4776
What is Asset Refinance purchase?
Asset Refinance, also known as Sale and Leaseback or Sale and HP back, is a financial strategy that allows your business to sell its assets and equipment to a leasing company in return for a significant lump sum of cash.
This agreement allows your business to immediately access capital that can be used for various purposes, such as investing in new projects, paying off existing debts, or improving cash flow. After the sale, your business then enters into a lease agreement with the leasing company, allowing you to continue using the sold assets and equipment by paying an agreed-upon monthly amount.
This monthly payment is typically structured to be manageable within your business’s budget, ensuring that you can maintain operations without disruption. This arrangement can be particularly beneficial for businesses looking to unlock the value of their assets while still retaining the ability to use them for ongoing operations.
How does refinance work?
The process is straightforward and designed to be as seamless as possible. Initially, an evaluation of your asset(s) is conducted to determine their current market value. Based on this assessment, you will be provided with an assessment report and value.
Following this, you will typically be offered a loan amount that corresponds to an agreed percentage of the asset’s valuation. This approach is particularly advantageous for those who have assets approaching the end of their finance term or are confronted with a balloon payment, as it provides a flexible financial solution tailored to your specific needs.
Benefits of asset refinance
- It’s a quick and easy way to raise funds for business growth
- Secure funding for Management Buy out/Buy in
- Improve your finances with debt consolidation and restructuring solutions
- Could offer a cheaper alternative to other funding avenues
- Perfect for businesses of any scale
- Secure deposits for new assets or software that might not fit traditional financing
- Unlock the potential to lower your monthly expenses
Finding the right refinance agreement
Securing the right agreement is essential – it’s crucial to obtain the most favourable deal for your situation. The duration of the agreement is also significant. Consider the period over which you’d prefer to repay the new agreement.
Additionally, it’s important to select a reputable funder that is authorised and regulated by the Financial Conduct Authority (FCA). You can verify a business’s credibility by searching its name on the FCA Financial Services Register .
Securing your refinance agreement
Securing a hire purchase agreement with Anglo Scottish has never been easier. Thanks to our funding panel of over 70 unique partners, we can quickly and easily offer you the best possible terms for your asset refinance agreement, with a wider range of terms available than at traditional banks.
Once you’ve decided upon the asset you’d like to refinance, contact us. Our team of expert advisors will work with you to get to know your business and your specific requirements and establish whether a refinance agreement is right for you.
Then, we’ll contact our approved funders to find the best available terms for you. Once you’re happy with your terms and have signed the agreement, we’ll carry out one final check, and then you can get access to your cash.
HOW IT WORKS
Decide
DECIDE
Decide on the asset you would like to refinance
Talk
TALK
Talk to us, tell us about your business and the asset.
Approval
VALUATION
We will have the asset asses and you will receive a valuation.
Sign
AGREEMENT
We’ll find the best refinance deal that works for your circumstances and budget.
CASE STUDIES
Contact us
A refinance agreement can be a great solution for businesses of a range of sizes and with a range of different goals. If you need access to cash quickly, it could be perfect for your business
However, your ideal arrangement could vary depending on your specific business circumstances – a commercial finance agreement or different form of asset finance could be better suited to you, and our team will work with you to establish this.
Whether you’re still unsure about the best course of action for you, or simply want to find out more about the options available, our expert advisors are on hand to provide advice and guidance.
To find out more, contact us today.
Need help? Call us on 0191 410 4776