Refinancing is the process of releasing capital tied up in assets to free up cash for other purposes or to enhance cash flow over time. It allows you to retain ownership and full use of the asset even after the term ends. Refinancing can be used even if you already have existing finance with another provider, such as an ongoing hire purchase agreement. It’s a cost-effective and flexible approach to accessing cash, but it requires careful consideration. Each refinancing need is unique, which is where our expertise can help you.
We have compiled answers to some commonly asked questions about refinancing, but this is only the beginning. Feel free to get in touch with us for a more detailed discussion about your specific refinancing requirements.
Generally, lenders offer a maximum of 80% of the trade value of the asset. If you need more, we can explore alternative options. Each situation is assessed individually, taking into account various factors. For instance, to increase the loan-to-value (LTV) ratio, we may consider an accelerated payment profile where you make larger payments at the beginning of the term. The key is knowing which funders to approach.
Funders have varying preferences and appetites for refinancing, which depend on factors such as industry and asset age. We evaluate your business and the assets involved before determining which funders to approach. There’s no predetermined number to approach; instead, we approach the most suitable funders. With our experience and understanding of the market, we have a comprehensive knowledge of the lending profiles of different funders.
The timeframe for refinancing can vary significantly since each set of circumstances is unique. One crucial factor is the valuation process; if the asset can be easily valued, we can initiate the refinancing quickly. However, if the valuation is more complex, it might need a little more time. Detailed documentation regarding your assets can expedite the process. Generally, the timescales for refinancing range from 1 to 3 weeks.
If your circumstances change, there are options available. We can guide you through these alternatives.
Refinancing can be an excellent choice, and this is where you can lean on our expertise. Through understanding the market, the funders, and their individual profiles, we can source and help secure the best deal for you.