The following are some examples of asset refinancing scenarios:
Buying more equipment: Some businesses may find it difficult to acquire asset finance for new gear, but they may be able to raise capital by refinancing old assets (or by offering them as additional security).
Raising capital: Without the need for outside investment, a company can raise capital for expansion.
Management buy-ins/outs: Refinancing a company’s assets might help you raise funds to buy another company or help you restructure your own.
To reduce existing monthly commitments: To extend the remaining balance of an existing financial agreement over a longer term in order to lower existing monthly commitments (to reduce the monthly payments).
Replenishment of Working Capital: To restructure existing debt.