The practical answer
Do not assume so. Release depends on the old agreement and guarantee terms, including whether other obligations remain.
Ask the existing lender what must happen for release and request written confirmation once settlement completes. A guarantee may cover more than the single asset being refinanced.
Review any new guarantee separately. Refinancing can replace one commitment with another rather than remove personal exposure, so obtain legal advice where the wording or release position is unclear.
Commercial finance is subject to status, lender approval and the specific asset and transaction. The right structure depends on the complete circumstances of the business.
What should I do next?
Have the asset details, supplier information and an outline of what the business needs ready. DCF can then discuss the requirement and identify which lenders may be suitable.
Read: Asset refinance →Explore the relevant guides
New-start asset finance — For limited trading history, director experience and supporting evidence.