Refinancing (capital release) is a quick way to free up the value of assets already owned within the business. Freeing up these assets from your existing balance sheet, you can use the value elsewhere within the business. This could be for business expansion, as part of a restructure of existing facilities, for further capital purchases, or simply to ease cash flow.
How Does Refinancing Work?
If you own high value assets such as vehicles, machinery or equipment within the business, refinancing could allow you to raise more working capital for the business, or help you restructure existing commitments. It doesn’t matter if the assets still have finance on them, or you own the assets outright – refinance can be used in both scenarios. Refinancing frees up the value of the assets and releases capital back in to the business.
Benefits of Refinance
- Can be used to create a cash injection into the business which can be used for growth, as part of restructure, to buy other assets etc. giving you multiple options for how the money is used.
- You maintain the use of the asset, so it doesn’t affect the use of the equipment for the business.
- Monthly payments can be reduced if existing finance is being restructured. We can take over existing finance agreements and extend the term to reduce the monthly payments.
For more information about Busby Finance Ltd or Refinance, please contact us.