How to Refinance Equipment and Assets in your Business
In this article, we take a look at equipment refinancing in your business.
Equipment refinancing is a common process for a company
Equipment refinancing is quite common throughout businesses. It is often one of the quickest and simplest ways for a company to raise finance at sensible interest rates. Read more in our related blog, What is the advantage of a sale and leaseback of equipment?
What information do we need for you to refinance equipment?
- The original supplier purchase invoice
We will need to see a copy of the original invoice to confirm the assets age, supplier, model number and original value.
- Confirmation you have full legal title
Either we will have to see a bank statement confirming the asset has been paid for or speak to the original supplier to confirm you have full legal title.
- How much money are you looking to raise and why?
Our leasing underwriters will need to understand how much you are looking to raise and the reasons why you are looking to do this.
- Information to aid a credit proposal
Depending on how big your company is, we may need to see bank statements, management accounts or details on the directors. We will get as much information from the public domain prior to asking for any of this information.
What is the process?
- Initially, we will give you a quick indication – subject to credit – on how much money we can raise and roughly what the monthly repayments will be
- Subject to your approval, we will then look to obtain a credit acceptance
- You then sign a lease agreement
- You raise an invoice selling the equipment to our lease company and then make repayments over the term of the agreement
- Our funder has full legal title in the equipment
How long does the process take before we can get the money?
Once we have all the information we need, the process takes from 24 hours to three to four days to get a credit approval. The more information we have, the easier it is to value the equipment – the quicker the decision process.
Is there an obligation to go ahead with your quote and is there a cost?
Sometimes there may be a fee to pay in order for us to look into this. If so, this will be clearly documented to you up front. If this is the case, we will say there is a fee to pay only if we obtain a credit acceptance and you decide not to use it.
More often than not, once we have obtained a credit acceptance, the company will use it.