Is Your Equipment Sitting Idle? How Asset Refinancing Can Unlock £10k–£500k in Working Capital
Many UK businesses are sitting on valuable equipment that is doing more than taking up space. It may be fully paid off, underused between contracts or simply no longer central to day-to-day operations. Yet, even when an asset is not generating revenue directly, it could still unlock valuable working capital.
Asset refinancing allows you to release cash from machinery, vehicles and equipment you already own: without stopping using it. Depending on the asset, its condition and the lender’s assessment, you may be able to unlock between 70% and 90% of its current market value, with facilities commonly ranging from £10,000 to £500,000.
That could provide the liquidity needed to take on new work, manage a tax bill, invest in stock or strengthen your cash position.
At LetsTalk Asset Finance, we help businesses assess whether refinancing is appropriate and then compare tailored solutions across our extensive lender network.
Explore asset refinance and capital release
What is asset refinancing?
Asset refinancing is a form of business finance that uses an existing asset as security for a new funding facility.
Rather than selling productive equipment or applying for an unsecured loan, you release capital from an asset already on your balance sheet. The lender assesses the asset’s current market value and may advance a proportion of that value as a secured loan, hire purchase agreement or sale-and-leaseback arrangement.
You retain operational use of the equipment throughout the term, making regular monthly repayments over an agreed period: typically 12 to 60 months.
Which assets can be refinanced?
Asset refinancing can work with a wide range of business-critical assets, including:
- Construction plant, excavators and access equipment
- HGVs, vans, trailers and specialist transport vehicles
- CNC machinery and manufacturing equipment
- Agricultural machinery and farm vehicles
- Medical, healthcare and laboratory equipment
- IT, telecoms and technology infrastructure
- Renewable energy equipment and other hard assets
Assets will generally need to have a minimum value of around £10,000, although lender criteria vary. Age, condition, resaleability, ownership and the strength of the business will all influence the amount available.
How much working capital could you unlock?
The amount you can release depends on the lender’s valuation rather than the original purchase price of the equipment.
As a general market guide, lenders may release approximately 70% to 90% of the asset’s current market value. For example:
These figures are illustrative only. The final offer will depend on the asset, its valuation, the proposed structure and your business’s financial circumstances.
The key benefit is that you can convert part of an illiquid asset into cash while continuing to use the equipment. That can improve liquidity without forcing you to sell the asset or interrupt operations.
How does asset refinance work?
There are two common structures.
1. Sale and leaseback
Under a sale-and-leaseback arrangement, the lender purchases the asset from your business and leases it back to you. You receive an agreed lump sum and continue using the equipment under the lease agreement.
This can be useful when you own an asset outright but want to release equity tied up in it. At the end of the term, the agreement’s ownership and return conditions will depend on the specific lease structure.
2. Secured loan or refinance facility
Alternatively, a lender may provide a secured loan against the asset. You retain the equipment and repay the borrowing over a fixed term.
This approach can be suitable where you want a straightforward capital release facility while keeping the asset within your existing operational structure. The precise legal and accounting treatment will depend on the agreement, so professional advice should be taken where necessary.
What if the asset is already financed?
You may still be able to refinance an asset with an outstanding finance balance.
In that situation, a new lender can often settle the existing agreement and release the remaining equity to your business. For example, if equipment is valued at £100,000 and £35,000 remains outstanding, the new facility may repay the existing balance and release a proportion of the remaining value, subject to underwriting.
This can simplify your finance arrangements while creating additional working capital.
What can you use the released funds for?
One of the advantages of asset refinancing is that the released cash can usually be used for a broad range of legitimate business purposes.
You could use the funds to:
- Purchase stock ahead of a busy trading period
- Cover recruitment, wages or supplier payments
- Fund deposits on new equipment
- Take on a larger contract
- Expand into new premises or territories
- Consolidate expensive short-term borrowing
- Invest in marketing, technology or automation
- Manage seasonal fluctuations in cash flow
- Pay for installation, delivery, training and other soft costs
This flexibility can be particularly valuable when an opportunity arrives before cash has been generated from existing work.
At LetsTalk Asset Finance, we can also explore whether related soft costs should be included in a wider funding package. That means you may not have to fund essential implementation expenses separately.
Why consider asset refinancing in 2026?
The cost of borrowing remains an important consideration for business owners. The Bank of England reported that Bank Rate was held at 3.75% on 30 July 2026, while also highlighting continued uncertainty around energy prices and inflation.
For businesses, this means funding decisions should be based on more than the headline interest rate. The repayment profile, speed of access, security requirements and impact on working capital all matter.
Indicative asset refinance rates are often around 6.5% to 12%, although the rate offered will depend on factors such as:
- Your trading history and financial performance
- The asset’s age, condition and market demand
- The advance required against the valuation
- The term selected
- Your existing borrowing
- The lender’s risk appetite and product criteria
A longer term may reduce monthly repayments and protect cash flow, although it can increase the total amount paid over the life of the agreement. We help you compare the overall cost and structure: not just the monthly figure.
Asset refinancing across different industries
Construction
A contractor may own an excavator or telehandler that is fully paid off but only used when specific projects are secured. Refinancing could release capital to fund materials, labour or deposits on additional plant, while the business keeps using the equipment when required.
Haulage and transport
A transport operator could refinance owned HGVs, trailers or commercial vans to support fleet repairs, driver recruitment or expansion into new routes. The vehicles remain operational, helping the business continue generating revenue.
Manufacturing
A manufacturer may have substantial value tied up in CNC machinery or production equipment. Releasing part of that equity could help fund automation, raw materials or a new production line without selling the machinery that supports existing output.
Agriculture
Farm businesses often experience seasonal income patterns. Refinancing tractors, combines or specialist machinery could provide liquidity ahead of planting or harvest, helping spread expenditure more effectively across the year.
Healthcare
Healthcare providers may own diagnostic, dental, laboratory or treatment equipment. Asset refinancing can help them invest in premises, staffing or additional capacity while retaining access to the equipment patients rely on.
Could the Growth Guarantee Scheme help?
The Growth Guarantee Scheme (GGS) remains available through participating, British Business Bank-accredited lenders. It is designed to support access to finance for eligible smaller UK businesses, including through asset finance and asset-based lending.
Where a lender considers it appropriate, the scheme may help improve the prospects of securing funding. However, it does not remove the need for a proper affordability and viability assessment, and eligibility is not automatic. The business remains responsible for repaying the facility.
Our team can help establish whether a GGS-backed option may be relevant to your circumstances and identify lenders offering suitable products.
How quickly can you access the funds?
Asset refinancing can be considerably faster than many traditional funding routes.
For straightforward applications with clear asset ownership and complete information, indicative decisions may be available quickly, with funds often accessible within 48 hours to five working days. More complex cases, older assets or applications requiring detailed valuations may take longer.
To help keep the process moving, it is useful to prepare:
- Details of the assets, including make, model, age and serial numbers
- Evidence of ownership or existing finance
- Recent accounts or management information
- A clear explanation of how the funds will support the business
- Details of any outstanding borrowing secured against the assets
Our streamlined process and wide lender network mean we can present your application to an appropriate funder, rather than taking a one-size-fits-all approach.
Is asset refinancing right for your business?
Asset refinancing may be worth considering if:
- You own valuable business equipment outright
- Your equipment is underused or sitting idle
- You need working capital without selling productive assets
- You want to retain full operational use of the equipment
- You have existing asset finance and want to explore the equity available
- You are planning expansion, investment or contract delivery
- Unsecured borrowing is expensive or unavailable
It is important to remember that the asset is being used as security. If repayments are not maintained, the lender may have rights over the equipment. We will explain the structure, costs, fees and obligations clearly before you proceed.
Unlock the value sitting in your equipment
Your equipment may be doing more for your business than you realise. Even an asset that is currently idle could represent a valuable source of capital.
With potential funding from around £10,000 to £500,000, terms of 12 to 60 months, and the ability to continue using the equipment, asset refinancing can provide a practical route to stronger cash flow and sustainable growth.
At LetsTalk Asset Finance, we offer a transparent, consultative service backed by an extensive lender network. We will assess your assets, understand your objectives, explain the available options and support you throughout the application process with a dedicated account manager.
Contact LetsTalk Asset Finance for tailored asset refinance advice: we will help you explore how much working capital your equipment could unlock!