Asset Refinancing is a facility used to raise a lump sum that can be put back into the business cash flow or used to pay a tax bill for example.
This facility can also restructure an existing finance agreement to release equity in the asset, or reduce monthly finance repayments or indeed it can encompass multiple agreements into one.
You continue to use the assets as before and send the finance company the agreed monthly repayments.
Asset refinance can make a company more flexible by allowing it to react to a change in market conditions or respond to a financial problem such as a bad debt. It can also help to free up capital so that a firm can take advantage of a new business opportunity.
