Can I refinance existing hotel equipment or consolidate current agreements?

Yes. Refinancing existing hotel equipment and consolidating multiple agreements into a single facility are both routine UK SMB lending operations. Hotels have strong asset bases (kitchen, laundry, vehicles, fit-out) and high recurring cashflow, which makes them well-suited to both routes.

Equipment refinance for hotels. Sale-and-leaseback against owned-outright commercial laundry, kitchen, refrigeration, AV systems, transport vehicles or branded fit-out releases working capital in 7 to 14 days. Specialist UK lenders include Time Finance, Aldermore and Ultimate Finance. Hotel laundry, in particular, is a strong refinance asset because it has a deep second-hand market and predictable wear cycles. Typical refinance values run 60% to 80% of current market value of the asset, repaid over 2 to 5 years.

Consolidation of multiple agreements. Hotels often run a portfolio of small finance agreements: one HP for the kitchen, one for the laundry, an MCA against card-machine flow, an unsecured term loan for the last refurbishment. Consolidating these into a single debenture-secured term loan from a bank like Allica Bank, Shawbrook or Aldermore is a well-trodden path for hotels with £500k+ aggregate exposure. Expected blended cost reduction is 5% to 15% depending on the pricing of the existing book.

The decision is straightforward: total interest paid post-consolidation versus total interest paid completing the existing book, plus a 1 to 3% redemption fee on each existing facility. See our blended cost of capital calculator and our bounce-back refinance use case for the consolidation maths.