The practical answer
Potentially. Unencumbered plant or machinery may support an asset-backed funding proposal, subject to valuation, ownership, business and lender criteria.
The lender needs evidence of ownership, asset identity and acceptable value. Disclose other company security that might affect the equipment even if its original purchase finance has ended.
Ask about valuation costs, eligible advance and net proceeds. Continuing to use the plant does not mean ownership and security remain unchanged under the new structure.
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
Plant & machinery finance — For construction, agricultural and other productive equipment.