Many finance companies provide the facility to refinance previously paid for assets, generally on the basis that the asset is durable, identifiable, and moveable. Most assets can be refinanced – general plant and machinery, commercial vehicles, buses, etc. Funds generated can then be used for any business purpose as required. There are several methods of refinancing available:
- Sale & Lease Back. The equipment is sold to the finance company, and rented back to the seller for an agreed period of time.
- Sale & Hire Purchase back. The equipment is sold to the finance company, and re-purchased by the seller over an agreed period of time.
- Loan & Chattel Mortgage. The finance company lends to the owning company, with the loan secured by a chattel mortgage over the asset concerned.
NFS can introduce you to the right lender for your business.