Can I refinance existing trucks or equipment to release equity for cash flow?

Short answer — yes, asset refinance can unlock cash tied up in vehicles and machinery

Yes, many UK businesses can refinance existing trucks, vans, plant, or machinery to release equity and improve cash flow. This is commonly done through asset refinance or sale-and-hire purchase/leaseback, where a lender uses your owned or partially financed assets as security and advances a lump sum against their value. You then repay over an agreed term, keeping the assets in use while boosting working capital.

Asset refinance can suit logistics fleets, construction plant, manufacturing machinery, agricultural equipment, and other high-value assets. The amount you can release typically depends on current market value, age, condition, mileage/hours, and how much debt remains on the asset. Lenders often work within a loan-to-value (LTV) range that reflects realistic resale values and depreciation curves.

Best Business Loans does not lend directly, but we help you explore whether asset refinance is feasible for your business. Our AI-driven platform matches your profile with reputable lenders or brokers that understand your sector and are actively lending. You can get an initial eligibility check or Decision in Principle without committing to a full application.

What is asset refinance?

Asset refinance uses business-owned vehicles and equipment as security for new funding. If the asset is unencumbered, a lender can create a new agreement to release cash back to your business. If the asset is still financed, a lender may settle your existing agreement and replace it with a new one that better fits your cash flow.

In both cases, you keep using the asset in your operations. Repayments are spread over a fixed term with interest and fees clearly set out in your agreement. The asset typically serves as collateral, which is why valuations and condition reports are important.

These structures are widely used by established SMEs that want to raise funds without diluting ownership or relying solely on unsecured borrowing. They are particularly useful when assets hold predictable resale value.

Common structures you may encounter

• Refinance of owned assets: Borrow against unencumbered trucks, vans, or machinery.
• Sale and hire purchase back: Sell the asset to a finance company and buy it back over time while continuing to use it.
• Sale and leaseback: Sell the asset and lease it back with fixed rentals and a defined end-of-term position.
• Settlement and refinance: Replace an existing facility with a new agreement that may reduce monthly outgoings or extend the term.

Important notice

Any facility will be subject to status, valuation, underwriting, and affordability checks. If you default, the asset may be repossessed. Terms, rates, and product availability vary by provider and sector.

How asset refinance works in practice (step-by-step)

The process usually starts with a quick fact-find and asset list. Lenders assess what you own, what you owe, the age and condition of each asset, and your trading profile. You may receive an initial indication of funding amount and terms, subject to valuation and due diligence.

Next comes valuation and settlement checks. For financed assets, lenders will obtain a settlement figure from your current provider. For owned assets, they will verify ownership and inspect the asset’s condition, specification, and service history.

Once approved, funds are released to you or used to settle existing finance first. You then make agreed repayments over a term that aligns with the asset’s useful life. You keep operating the vehicles and equipment throughout.

Typical timelines and documentation

Indicative decisions can be quick, often within a few business days if information is complete. Final approval and payout times can vary depending on asset type, number of assets, and whether settlement of existing agreements is needed. Complex fleets and multi-asset deals may take longer due to inspections and coordination.

Expect to provide company accounts, bank statements, proof of asset ownership or finance statements, V5/registration documents, invoices, maintenance records, and insurance details. Clear asset photos and serial numbers can speed up the process.

Where appropriate, directors’ guarantees may be requested by some providers. This depends on credit profile, asset coverage, and overall risk appetite.

What can be refinanced?

• Transport and logistics vehicles: HGVs, articulated units, trailers, rigid trucks, and vans.
• Construction and plant: Excavators, telehandlers, dumpers, cranes, access platforms, and loaders.
• Manufacturing and engineering: CNC machines, lathes, presses, fabrication equipment, and robotics.
• Agriculture: Tractors, combines, sprayers, balers, and specialist implements.
• Other specialist assets: Printing presses, medical equipment, commercial kitchen equipment, and more.

Not all assets qualify, and older or highly specialised items may be harder to fund. Lenders favour assets with strong secondary markets and reliable residual values.

If you operate a fleet, refinancing selected vehicles can create a meaningful working capital buffer. For sector-specific support, explore our guidance on logistics business loans to see how funding routes differ for transport operators.

Costs, rates, and risks you should weigh up

Costs vary by lender, asset type, business profile, and deal size. You will typically see an interest rate or flat rate, plus arrangement and documentation fees, and sometimes valuation or inspection costs. If your existing finance is settled as part of the transaction, early settlement charges may apply.

Rates for asset-backed facilities often reflect the quality of the underlying security and your credit standing. Newer, liquid assets and stronger financials tend to attract more competitive pricing. It is essential to compare the total cost of finance, not just the rate headline, to understand true value.

VAT treatment depends on the structure and whether the original purchase included VAT reclaim. Always seek advice from your accountant regarding VAT, capital allowances, and any impact on your balance sheet.

Risks and safeguards

• Security over assets: Your vehicles or equipment may be repossessed if you fail to maintain repayments.
• Depreciation: If assets decline faster than expected, residual values may constrain future refinance options.
• Usage and maintenance: Excessive wear, high mileage/hours, or poor maintenance can reduce available funding.
• Insurance and compliance: You must maintain appropriate cover and keep assets roadworthy or compliant with relevant regulations.
• Cash flow discipline: Refinancing improves liquidity now but adds a new repayment commitment that must be planned for.

When used thoughtfully, refinance can diversify funding and reduce pressure on overdrafts. It can also consolidate multiple agreements to simplify administration. The key is to align term length with asset life and projected utilisation.

Comparing multiple offers can surface meaningful differences in residual assumptions, fees, and end-of-term options. A broker or introducer can help you weigh trade-offs beyond the headline rate.

Illustrative scenario (for guidance only)

A haulage firm owns several Euro 6 tractors with modest mileage and clear title. A lender values the units and advances a percentage of current trade values. The firm receives a lump sum to ease fuel, payroll, and maintenance costs during a seasonal dip.

Repayments are fixed over a term that matches expected usage and residual value outlook. The fleet stays on the road, and working capital is smoothed without selling core assets. Terms, pricing, and feasibility will differ based on your fleet profile and financials.

This example is not an offer and excludes fees, taxes, or settlement charges. Obtain personalised terms before making any decision.

Eligibility — what lenders assess and how to improve approval odds

Lenders consider your trading history, sector, profitability or cash generation, and credit conduct. They will evaluate the assets’ age, brand, specification, maintenance record, mileage or hours, and saleability in the secondary market. A realistic, professional valuation underpins maximum LTV.

If assets are currently financed, your existing settlement figure is key. Some lenders can consolidate multiple agreements into a single facility, subject to coverage and affordability. The aim is to ensure the new repayments are sustainable against your cash flow.

You will typically be asked for recent accounts and bank statements so affordability can be assessed. Clear evidence of ongoing contracts and utilisation can strengthen your case, especially for fleets and plant-intensive operators.

Tips to strengthen your application

• Prepare a clean asset schedule with registrations, serial numbers, specs, mileage/hours, and maintenance history.
• Address any arrears or disputes on existing finance before applying.
• Service and present assets well to support valuation outcomes.
• Demonstrate why you need the cash and how repayments fit your forecast.
• Share evidence of recurring revenue or order book to support affordability.

If you are refinancing mixed assets, consider prioritising newer, higher-value items first. This may unlock more equity at keener rates and set a benchmark for the rest of the fleet.

Specialist sectors benefit from lenders who understand asset nuances. Matching to the right provider can improve both speed and terms.

FAQs about refinancing trucks and equipment

Can I refinance older vehicles? It depends on age, condition, and resale demand, but older assets with strong markets can still qualify.

Do I need to own the assets outright? No, you can often refinance assets that are still financed by settling the existing agreement within the new facility.

How fast can I receive funds? Simple cases may progress in days once documents and valuations are complete, but multi-asset deals can take longer.

Will a refinance affect my tax position? Tax treatment varies by structure, so ask your accountant about VAT, capital allowances, and accounting impact.

Is approval guaranteed? No, all offers are subject to underwriting, valuation, and status, and may change if assumptions change.

Get an eligibility check and compare providers with Best Business Loans

Best Business Loans is an independent introducer that helps established UK businesses explore asset refinance options. We use AI-driven matching and a network of lenders and brokers to connect you with suitable providers for your sector and assets. There is no obligation to proceed, and it is free to submit a Quick Quote for an initial view.

Here is how it works: complete a short enquiry, our system reviews your profile, and we connect you with relevant providers for a Decision in Principle where possible. You remain in control, comparing structures, terms, and repayments before choosing a route. This saves time versus approaching multiple companies individually.

We aim to keep information fair, clear, and not misleading, and we do not guarantee approval or the lowest rate. Finance is always subject to status, affordability, valuation, and provider criteria. If you are unsure which structure suits your needs, consider professional advice from your accountant or a qualified finance adviser.

Next steps

• List the vehicles and equipment you want to refinance, including age and condition.
• Gather recent management accounts, bank statements, and existing finance details.
• Submit your details for a Quick Quote to check indicative eligibility and terms.

Our goal is to help you make a confident, informed decision about releasing equity without disrupting operations. If logistics and transport are core to your business, sector-fit lenders can be particularly valuable. Start with a no-obligation eligibility check to see what could be possible for your fleet or equipment.

Ready to begin your asset refinance journey? Submit a Quick Quote at BestBusinessLoans.ai or email hello@bestbusinessloans.ai for guidance. Your enquiry is handled securely and only shared with relevant finance professionals.

Key takeaways

• Yes, you can often refinance existing trucks and equipment to release equity for cash flow.
• Structures include refinance of owned assets, sale-and-HP back, and sale-and-leaseback.
• Funding depends on valuation, asset quality, trading profile, and affordability.
• Costs include interest, fees, and potential settlement charges — compare total cost, not just the rate.
• Best Business Loans connects you with suitable providers for a fast, no-obligation eligibility check.

Updated: October 2025. This content is for UK businesses and is not financial advice. Product availability and criteria are subject to change.