Infographic: Asset RefinancingPublished on 14th October 2015 - Last update on 19th January 2018
As part of our recent series on asset finance, we’ve got a brand-new infographic – this time, answering your questions about asset refinancing. You might remember from our previous posts that the British Business Bank has pledged to increase funding for asset finance loans within the UK. One of the finance options you’ll be seeing more of, thanks to this new project, is asset refinancing:
- Asset refinancing is a way of using assets a business already owns to finance their business.
- Assets can include machinery, equipment, or vehicles.
- A lending institution will advance cash based on the value of the asset. This will be repaid, along with interest, in monthly installments.
- The asset acts as collateral, meaning that it can be easier to be approved for asset refinance than for other loans – but like all other loans, approval depends on the business’ specific circumstances and credit rating.
- It is important for the business to be sure they can make the repayments before refinancing its assets. If they default on their loan, their essential equipment could be repossessed.
Rangewell has extensive knowledge of the SME financing field. We’ve independently mapped the business finance market of thousands of products from over 300 lenders, so we can offer SMEs and professional advisors access to multiple sources of asset refinancing, as well as a wide range of other funding solutions. If you need business finance, Rangewell can connect you with the best sources. Click here to find out more.
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