For many small and medium-sized enterprises, accessing finance can be a major challenge. Traditional lending options can be difficult to secure, particularly for newer businesses or those with less-than-perfect credit histories. However there are alternative financing options available, such as asset refinance.

Asset refinance is a type of lending where a business uses its assets, such as equipment or machinery, as collateral to raise cash. This can be a flexible financing option for SMEs as it allows them to release cash from their existing assets to invest in growth opportunities or to manage cash flow.

At TSF Finance we specialise in providing asset refinance solutions to SMEs across the UK. In this blog we’ll take a closer look at how asset refinance works, the benefits it can offer, and how TSF Finance can help your business access this type of financing.

How does asset refinance work?

Asset refinance involves a business using its existing assets as collateral to raise finance. This can include a range of items such as vehicles, machinery, or equipment. The lender will typically assess the value of the assets and offer an advance based on this value.

The advance is secured against the assets, which means that if the business is unable to repay the loan, the lender has the right to take possession of the assets and sell them to recover their money. However, as long as the business makes its repayments on time, it can continue to use the assets as normal.

Benefits of asset refinance for SMEs

Asset refinance can offer several benefits for SMEs. Here are some of the key advantages:

• Improved Cash Flow: By releasing cash from existing assets, asset refinance can provide businesses with a valuable injection of cash that can be used to fund growth opportunities or manage cash flow.
• Flexible Repayment Terms: Asset refinance loans can be structured with flexible repayment terms that suit the needs of the business. This can include options such as interest-only payments or longer repayment periods.
• No Need for Additional Security: Because the loan is secured against the assets, there is no need for additional security, such as a personal guarantee or a charge over property.
• Better Control: Asset refinance can provide businesses with greater control over their finances, as they can use the funds as they see fit without being restricted by the terms of a traditional loan.
• Speed of Funding: Asset refinance loans can often be arranged quickly, which means that businesses can access the funds they need in a timely manner.

How TSF can help

At TSF Finance, we specialise in providing asset refinance solutions to SMEs across the UK. Our team of experienced professionals can work with your business to identify the assets that can be used as collateral and structure a loan that meets your needs.

We understand that every business is different, which is why we take a flexible approach to asset refinance. We can tailor our solutions to meet your specific requirements, whether you need short-term financing or a longer-term loan with flexible repayment terms.

If you’re interested in exploring asset refinance as a financing option for your business, we’d be happy to discuss your needs. Get in touch with a member of our expert team to find out more.