Asset finance for plant, machinery and related business assets for new and refinancing arrangements are available from a wide variety of financiers from high street Banks through to specialist funders who focus on niche sectors.

The choice of an asset financier is invariably based on funding at the most competitive price. Access to the keenest rates will depend on the strength of the borrower and their ability to service the debt. Where a business may be under performing or involved in a turnaround process it is likely that secondary or specialist funders may need to be involved in the finance raising process.

There are a range of funders who will refinance assets. This form of finance raising is very helpful to generate short term cashflow to steady a business or meet pressing obligations. As well as generating new funding, refinancing assets can, where there is a cashflow need, spread the repayment of a debt over an extended period that will reduce monthly outgoings which is particularly helpful in a business turnaround.

Asset finance above £25,000 may require a 10% to 20% deposit. In a refinancing situation or where there is perceived higher risk, extra security by way of personal guarantees or other asset security may be required.

For transactions under £25,000 greater reliance is placed on personal guarantees. Such transactions tend to be less complicated and accordingly decisions can be made quickly and funds can be advanced in a matter of days.