Asset refinance

The need for a business to continually monitor and review its financial position is incredibly important, especially in the current economic client where costs seem to change on a daily basis. It is hard to predict how running costs such as fuel and energy will change in both the short and long term. This makes it vitally important that a business maintains a healthy cashflow. Operating a business in the current landscape is challenging and those that succeed are the ones that can adapt quickly and they can only do this with the right financial foundations.

A funding solution that can help businesses is asset refinancing. In essence you are leveraging the value of your business assets which can then be turned in to positive working capital.

Probably one of the areas that causes most confusion for a business owner is recognising what assets can be used for refinance purposes. Potentially any tangible asset that the business owns and which holds a value can be used. Typical examples include:

• Operating and manufacturing machinery
• Catering and industrial food equipment
• Commercial vehicles
• Leisure and gym equipment
• General office tools (servers, printers, PC’s, etc)

Companies do not need to sell valuable assets in order to boost cash flow. Using asset refinance, a business can unlock the financial equity currently held in a business asset at a time when they need a boost in cash.

Another point of note is that if there is a business asset (or assets) which has already been used as security for a leasing or hire purchase agreement (through an asset finance deal) then a new refinancing deal can be used to help further consolidate existing debts whilst also boosting cash flow. An asset refinance deal will help to boost working capital and could also help to reduce monthly outgoings.

A simple way of looking at how asset refinance can be of benefit is to evaluate the profitability of the assets you own, unlock their value potential and benefit from a boost in cashflow, often with a reduction in monthly outgoings.

To find out more about asset refinance please call us on 01993 706403 or e-mail enquiries@ngifinance.co.uk.