Refinance Plant and Machinery

Many of our clients are finding that a sensible way of releasing cash for this business is to refinance existing assets that they already own. Many of the finance companies on the market are willing to refinance plant and machinery and other assets which are paid for already or have a reasonable level of value in excess of the existing loans for that equipment.

Refinancing plant and machinery is generally done on the basis that the equipment is durable, identifiable, and moveable.

Most equipment can be refinanced ranging from general plant and machinery, commercial vehicles, buses through to specialised production line machinery. The cash generated by the plant finance can then be used for any business purpose as required. This can include short term working capital which is especially useful when the banks are restricting access to further overdraft facilities or loans. Alternatively you may choose to invest the funds in purchasing other items of plant and machinery.
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There are several methods of refinancing available:

Sale & Lease Back. In this case the plant and machinery is sold to the finance company by the current owner and then rented back to the seller for an agreed period of time according to an agreed regular payment schedule.

Sale & Hire Purchase Back. The plant and machinery is sold to the finance company by the current owner and then re-purchased by the seller over an agreed period of time according to an agreed regular payment schedule.

Loan & Chattel Mortgage. The finance company lends to the owning company (ie your company), with the security taken in the form of a chattel mortgage over the asset concerned.

Our brokers are experienced in refinancing plant and machinery and regularly put in place these types of agreements.