Equipment Refinance Solutions for UAE Businesses
Your business can have valuable, well-functioning equipment, but that doesn't mean all your capital should be invested in it.
With equipment refinancing, you can unlock cash from existing owned equipment or machinery to generate liquidity and still use those assets in your business. This can be a wonderful, practical way to help improve cash flow while managing existing commitments or the next stage of growth.
Based on the existing corporations and assets, FinLab will help every UAE business with tailor-made equipment financing as well as asset finance options that suit their needs.
What Is Equipment Refinance?
1. Equipment refinance is the practice of raising finance against existing but still eligible equipment or any other pre-existing financed equipment that is on loan to your business.
2. You would not risk selling an important piece of machinery or equipment to raise cash – through refinancing, you may be able to generate funds while still keeping the asset in your business.
3. The amount you can borrow will depend on the type of commercial equipment, its market value and condition, whether there is an existing finance arrangement, and your overall business position.
4. Here are some ways that refinancing this equipment could benefit your business.
5. And companies regularly require more cash for reasons unrelated to the equipment itself. This can include providing working capital, purchasing stock, starting a new venture, or covering unforeseen business incidents.
6. Equipment refinancing can help you access the value in your operating assets and use that capital where your business needs it most.
It may help you:
- Improve day-to-day cash flow
- Fund business expansion
- Buy the stock or pay for work.
- Invest in additional equipment.
- Manage existing finance commitments
- Seize new opportunities for business.
Business Loan EMI Calculator for Smarter Financial Planning
Use our Business Loan EMI Calculator to estimate your monthly EMI, check repayment amounts and plan your business financing with confidence. Simply enter your loan amount, interest rate and tenure to get an estimated monthly repayment for your business loan in the Dubai, Sharjah, and Abu Dhabi, UAE.
What Equipment Can Be Refinanced?
The assets allowed will depend on the particular form of financing and the lender. The terms will be dictated by your specific circumstances and may include the following:
- Construction and engineering equipment
- Manufacturing machinery
- Commercial and specialist vehicles
- Medical equipment
- Agricultural machinery
- IT and technology equipment
- Other business-use machinery and equipment
Typically, we consider the nature of the asset, including its age, condition, value, and use. When determining the asset's suitability, we typically consider its nature, including age, condition, value, and use. when determining its suitability.
Equipment Finance and Asset Finance
Equipment finance typically focuses on a business's need to obtain funding for new equipment, whereas equipment refinance is structured around assets that the business already owns or is currently financing.
Both options fall within the broader asset finance market, allowing businesses to fund income-producing assets without the need for outright payment. Both options fall within the broader asset finance market and can enable businesses to fund income-producing assets without the need for outright payment.
What options work for you may depend on your end goal, what type of business assets are involved and the state of your finances.
Should You Refinance Your Correct Equipment?
If your business owns fully paid for equipment with value and needs access to extra working capital, it is well worth considering an equipment refinance.
It is especially useful for companies whose day-to-day operations are heavily reliant on machinery, vehicles or other equipment.
You really only need to consider things like the total cost of finance, commitments for repayments and how it aligns with your wider business plans before refinancing.
Why Work with FinLab?
Funding needs are different for each business. FinLab takes the time to understand your unique circumstances, including your current resources and your location, but this information is not required at this moment.
We can assist you in reviewing potential equipment finance and asset finance so that your financing structure is consistent with all aspects of your business needs.
Discuss equipment refinancing with FinLab.
If you are a business that has equipment or machinery and want to release capital from it, we can clearly explain what your options in this area may be.
Contact FinLab to discuss your equipment refinance needs today!
Frequently Asked Questions
What can equipment refinance be used for?
Funds can potentially be used for working capital, business expansion, stock purchases, new projects and other approved business expenses.
What types of equipment can be refinanced?
Depending on the lender, eligible assets may include machinery, commercial vehicles, construction equipment, medical equipment and other business-use assets.
Is equipment refinance the same as equipment finance?
No. Equipment finance is generally used to purchase equipment, while equipment refinance uses existing equipment to help raise additional finance.
Who can apply for equipment refinance in the UAE?
UAE businesses with eligible equipment and a suitable financial profile may be able to apply. Eligibility depends on the lender and the individual business circumstances.
How much can I borrow against my equipment?
The amount depends on factors such as the equipment's value, age, condition, existing finance and your business's financial position.
How can FinLab help with equipment refinance?
FinLab can help businesses understand their funding requirements and explore suitable equipment finance and asset finance options through its financing network.
Get the Right Business Financing for Your Business
Whether you need working capital, expansion funding, equipment finance or inventory financing, FinLab can help you explore suitable business financing options.
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