DCF KNOWLEDGE CENTRE
Refinance & releasing equity
Practical answers for UK limited companies. Explore the question closest to your purchase, funding need or agreement.
Read our asset refinance guide →24 questions
Can I refinance vans or trucks already on finance?
Potentially. A new lender may settle an existing eligible agreement and, where sufficient equity exists, may release additional cash to the business.
Read answer →Can I release equity from vehicles?
Potentially. If eligible vehicles have sufficient value above any settlement amount, an asset refinance proposal may be able to release cash to the business.
Read answer →Can I release equity from machinery?
Potentially. Owned or partly financed machinery may support refinance subject to ownership, valuation, condition, settlement and lender criteria.
Read answer →Can I refinance an asset financed by another lender?
Potentially. A new lender can consider settling the current eligible agreement. A current settlement figure and accurate asset details are key starting information.
Read answer →Can I refinance plant I already own outright?
Potentially. Unencumbered plant or machinery may support an asset-backed funding proposal, subject to valuation, ownership, business and lender criteria.
Read answer →What is sale and leaseback?
The business sells an asset to a finance provider and continues using it under a rental agreement. It can release cash, but ownership, cost, VAT and end-of-term implications need careful review.
Read answer →Can an existing hire-purchase agreement be refinanced?
Potentially. A lender may consider settling an existing HP agreement and replacing it with new finance, subject to the settlement, asset value and overall proposal.
Read answer →Can an existing finance lease be refinanced?
Potentially, depending on the agreement, settlement arrangements, asset and lender. Obtain the current settlement information before assessing options.
Read answer →Can asset refinance release working capital?
Potentially. Where eligible assets contain sufficient equity, refinancing can sometimes release cash that the business can use for working-capital purposes.
Read answer →How is available equity estimated for asset refinance?
Start with the lender’s accepted asset value, then account for existing settlement and the new lender’s funding terms and charges.
Read answer →How do I obtain the settlement figure needed for refinance?
Request a dated written settlement directly from the current lender using the agreement details.
Read answer →Can I refinance an asset that is worth less than its settlement?
It can be difficult because there is no positive equity to release and a shortfall may need funding separately.
Read answer →Will refinancing to a lower payment save my company money?
A lower instalment can improve monthly cash flow without reducing total cost, especially if the repayment period is extended.
Read answer →Can I refinance a fleet financed by several lenders?
Potentially, but every agreement, asset and settlement needs mapping before the net outcome can be assessed.
Read answer →Why might machinery refinance need an independent valuation?
A valuation can help establish current market value, condition and resale prospects, particularly for older or specialist equipment.
Read answer →Does refinancing automatically release my old personal guarantee?
Do not assume so. Release depends on the old agreement and guarantee terms, including whether other obligations remain.
Read answer →Can asset refinance cash be used to meet a tax bill?
Some lenders may consider general business purposes, but the intended use and the company’s underlying cash position must be disclosed.
Read answer →Can fully depreciated equipment still have refinance value?
Possibly. Accounting book value and current market value are different, but the lender must accept the asset and ownership evidence.
Read answer →Can I refinance an asset soon after the original finance starts?
It may be possible in some circumstances, but the reason, settlement, value and existing agreement terms need careful review.
Read answer →Does an existing charge over my company affect asset refinance?
It can. Existing security may affect whether the proposed lender can obtain the ownership or security position it requires.
Read answer →Will my company still own equipment after sale and leaseback?
The structure involves a sale to the finance provider and continued use under a lease, so ownership changes even though the asset remains in the business.
Read answer →Can I keep using vehicles or machinery while refinancing them?
The intention is often continued business use, but lender checks, title transfer and any consent requirements must be coordinated.
Read answer →Can I refinance equipment if I cannot find the original purchase invoice?
Missing documents can make ownership checks harder, but the lender can explain what alternative evidence it may consider.
Read answer →Can asset refinance solve recurring cash-flow problems?
It may release cash in an eligible proposal, but it also adds a repayment commitment and does not repair a loss-making business model.
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