At Approved Finance Group, we’re proud to help businesses access the capital they need to grow and innovate. In this case, we worked with a UK leading recycling firm, dedicated to transforming plastic waste into eco-friendly products such as shopping baskets and fruit baskets, using high-quality recycled plastic pellets.
The Challenge
In 2022, the recycling firm made a significant investment by purchasing a Gamma Meccanica 180 Tandem machine. This cutting-edge equipment plays a vital role in their production process, converting plastic waste into reusable materials. The business had never used finance before and opted to purchase the machine outright with cash.
However, as the business continued to expand, the owner realised the need for further investment to enhance the machine’s capabilities and maximise efficiency. With substantial upgrades required from Germany, the business needed a cash injection to fund these improvements without disrupting its current operations.
Our Solution: Asset Refinance
We worked with one of our lenders to offer a tailored asset refinance solution for Recycle for Future Limited. Asset refinance allowed the business to unlock the value of the machine they already owned, turning it into liquid capital. By refinancing the Gamma Meccanica 180 Tandem, the business was able to release £320,000 back into their operations. This capital injection was then reinvested to purchase much-needed upgrades for the machine.
What is Asset Refinance and How Can It Help Businesses?
Asset refinance is a financial solution that allows businesses to unlock capital tied up in assets they already own. In the clients case, they had invested heavily in a machine, but that capital was tied up and unavailable for other purposes. By refinancing the asset, they were able to access a large portion of the value of the machine in cash, which could be used to invest back into the business.
Key Benefits of Asset Refinance:
Improved Cash Flow: It provides businesses with a cash injection without the need to sell valuable assets or take on new debt.
Business Growth: Funds from asset refinance can be used to invest in new equipment, upgrade existing machinery, or fund expansion projects.
Flexibility: It’s an ideal solution for businesses that need immediate funds but don’t want to disrupt their existing operations or dip into working capital.
For businesses with significant capital tied up in assets such as machinery, vehicles, or equipment, asset refinance offers a flexible, cost-effective way to access funds quickly and efficiently. It also allows businesses to retain ownership of their equipment while benefitting from the released capital.
The Outcome
Thanks to the refinance solution, the recycling firm was able to secure the capital needed to enhance their operations and invest in vital upgrades. The process of securing the refinance was smooth, and by working closely with our lenders, we were able to ensure the business received the maximum possible loan-to-value ratio, providing the funds necessary to grow.
This case highlights the power of asset refinance as a tool for businesses that want to reinvest in their future without compromising their financial stability.
How to apply?
At Approved Finance Group, we are dedicated to helping businesses like Recycle for Future Limited access the funding they need to thrive. If your business is looking for ways to unlock capital tied up in your assets, our team is here to help guide you through the process and find the best solution for your unique needs.
If you are a business that believes could benefit from asset refinance, speak to a member of our business finance team today by calling 01908429888 or email us at info@approved-finance.co.uk. Alternatively, click here to check your eligibility today and a member of our specialist finance team will be in contact as soon as possible.