Asset refinance – Unlock cash from your business assets
Asset refinance allows your business to release cash tied up in existing assets such as vehicles, equipment or machinery. By using owned assets as security, you can borrow against their value and free up working capital to reinvest in growth, cover expenses, or manage cash flow.
At Funding Options by Tide, we work with 80+ UK lenders and have supported 17,000+ businesses, securing over £1bn in funding. Compare asset refinance options in minutes and find the right deal for your business.
What is asset refinance and how it works
What is asset refinance?
Asset refinance is a type of asset finance where you use assets you already own as collateral for a loan or credit facility. Instead of selling equipment outright, you raise money while continuing to use it.
This can be particularly useful if you’ve made large upfront purchases in the past and want to release equity without disrupting operations.
How does asset refinance work?
A lender values your existing asset (e.g. a van, manufacturing equipment, or IT system).
They agree on a loan amount, usually a percentage of the asset’s market value.
You repay over an agreed term, with the asset acting as security.
If repayments are made on time, you continue using the asset as normal.
Asset refinance can be structured as:
Sale and leaseback – You sell the asset to a lender, then lease it back.
Sale and hire purchase back – You sell the asset, then buy it back in instalments.
Asset refinance vs other finance options
Asset finance
Asset finance is used to fund vehicles, machinery and equipment.
Secured business loans
Unsecured business loans
No collateral required, based on your credit profile.
Invoice finance
Invoice finance releases money tied up in unpaid invoices.
Business credit cards
Revolving credit for managing short-term business expenses. Learn more about business credit cards
When does asset refinance help?
Asset refinance may be useful if your business wants to:
Release equity from owned assets to fund growth
Cover short-term cash flow gaps
Consolidate existing finance arrangements
Reduce monthly repayments by restructuring debt
Access better rates or longer repayment terms
Pros and cons of asset refinance
Pros | Cons |
Unlock cash tied up in owned assets | Risk of losing the asset if repayments are missed |
Continue using the asset while raising funds | Not suitable if your business lacks high-value assets |
Flexible repayment terms | Costs may be higher if asset value falls |
Can consolidate or restructure finance | May require valuations and legal checks |
Often faster than unsecured borrowing | Only works with assets that retain value |
Eligibility criteria for asset refinance
Lenders typically look for:
Assets with good resale value (vehicles, machinery, IT, specialist equipment)
Clear ownership, with no existing finance outstanding
Proof of trading history and financial stability
Ability to meet monthly repayments
Example scenarios
Construction firm – refinances diggers and machinery to fund a new project.
Transport company – releases equity from a fleet of vans to cover payroll.
Manufacturer – refinances equipment to consolidate debt and reduce costs.
How does Funding Options work?
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Why choose Funding Options by Tide?
Funding Options by Tide helps UK SMEs find fast, tailored business finance by connecting them with over 80 trusted lenders. Backed by Tide and FCA-regulated, the service is free and easy to use.
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We scan the market so you don’t have to, finding the right option for your business.
Trusted by 17,000+ UK businesses
From startups to established SMEs, we’ve already helped secure over £1bn in funding.
FCA-regulated and Tide-backed
We operate as a credit broker, not a lender, giving impartial access to multiple finance products.
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Personalised support
Our team can guide you through the process and help you choose the finance that fits your needs.
Estimate your costs today
If you're ready to take your business to the next level, use our business loans calculator to get an idea of what you can afford.
Want to understand the cost of your loan?
Use our business loan calculator below to find out how much you can borrow to take your business to the next level.
Calculations are indicative only and intended as a guide only. The figures calculated are not a statement of the actual repayments that will be charged on any actual loan and do not constitute a loan offer.
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Financial product information
Representative example*
• 9.7% APR Representative based on a loan of £50,000 repayable over 24 months.
• Monthly repayment of £2,291.56. The total amount payable is £54,997.44
*Some lenders may apply fees during the application process, please note that these are set and provided by these entities.
Annual Percentage Rates
Rates from 8.2% APR
Repayment period
1 month to 30 years terms
Please note that the information above is not intended to be financial advice. You should seek independent financial advice before making any decisions about your financial future.
It’s important to remember that all loans and credit agreements come with risks. These risks include non-payment and late-payment of the agreed repayment plan, which could affect your business credit score and impact your ability to find future funding. Always read the terms and conditions of every loan or credit agreement before you proceed. Contact us for support if you ever face difficulties making your repayments.
Funding Options, now part of Tide, helps UK firms access business finance, working directly with businesses and their trusted advisors. Funding Options are a credit broker and do not provide loans directly. All finance and quotes are subject to status and income. Applicants must be aged 18 and over and terms and conditions apply. Guarantees and Indemnities may be required. Funding Options can introduce applicants to a number of providers based on the applicants' circumstances and creditworthiness. Funding Options will receive a commission or finder’s fee for effecting such finance introductions.
Asset refinance FAQs
What assets can I refinance?
Vehicles, machinery, IT equipment and other business-critical assets that hold resale value.
Can I refinance assets that are still under finance?
Sometimes. The new facility may be used to settle existing agreements before releasing equity.
How much can I borrow with asset refinance?
Usually up to 70–80% of the asset’s current market value.
Will my business need to provide a personal guarantee?
It depends on the lender and loan size. Some may require a personal guarantee.
Is asset refinance suitable for small businesses?
Yes, especially those with valuable vehicles or equipment and limited access to unsecured borrowing.
Vivek Seda
Business Finance Manager
Vivek is the Asset Based Lending Manager at Funding Options by Tide. Vivek has been in the industry for over 10 years, working for both lenders and brokers. His product specialisms cover Asset Finance, Invoice Finance, Property Finance and structured transactions.