Asset refinance is typically the re-financing of equipent or vehicles already owned by a company.

This can be done to inject cash into the business when the assets are unencumbered. In this instance there will be an initial injection of cash into the business but equally there will be additional monthly repayments that will need to be met.

Alternatively assets can be refinanced to reduce the monthly repayments on an existing finance agreement. This can be done by spreading the repayments over a longer term. Typically this will be done to reduce monthly repayments and as such it has a positive impact on cash flow.

The assets that are suitable for refinance are what we terms hard assets. These are durable, identifiable assets that can easily be valued and readily sold. Suitable assets include vehicles, printing presses, earth moving plant, etc.