Can I refinance existing equipment to release working capital?

Yes. Equipment refinance (also called sale-and-leaseback) is one of the most underused routes in UK SMB lending. A specialist lender pays you the current market value of equipment you own outright, takes a charge over it, and you repay over 2 to 5 years. Cash hits your account in 7 to 14 days.

Eligible assets are those with a strong second-hand market: CNC machines and machining centres, HGVs and vans, agricultural plant (tractors, combines, sprayers), commercial laundry equipment, dental and medical kit, and printing presses. Hospitality kitchen equipment is harder to refinance because of weaker resale: most lenders prefer larger fixed assets. Soft assets (signage, branding, fit-out) are usually not refinanceable.

Typical refinance values run 60% to 80% of current market value of the asset. A £100,000 CNC machine 3 years old in good condition might refinance at £55,000 to £75,000, repaid over 3 to 5 years at 9% to 13% APR. The cost of capital is materially lower than an equivalent unsecured loan because the asset is the security. Specialist UK refinance lenders include Time Finance, Aldermore, Ultimate Finance and Allica Bank for larger £150k+ tickets.

The strategic case for equipment refinance is strongest when. You have substantial paid-down or owned-outright equipment. You need working capital but want to avoid the higher cost of unsecured. You want to deploy cash into a new investment with a higher expected return than the cost of refinance. Or you are consolidating multiple existing facilities and prefer to bring in fresh secured capital rather than restructure the existing book.

See can I refinance existing equipment or consolidate current business finance for the consolidation version.