Asset Refinance Ireland: Release Cash From Equipment You Already Own (2026)

Walk around most contractors' yards and you'll see the problem straight away. There's €200,000 of diggers, tippers and trailers parked up, all bought and paid for. And there's a Revenue bill due next month that the bank account can't cover.

The money's there. It's just made of steel.

Asset refinance turns that steel back into cash. You raise funding against equipment, vans, trucks or machinery you already own, keep using every piece of it, and pay the money back over two to five years. We arrange these deals all the time, and the businesses that get the best terms understand one thing early: lenders don't lend against what you paid for your kit. They lend against what it would fetch if they had to sell it. This guide shows you how that works, what you can realistically raise, and when it's the right move.

What Asset Refinance Is and How It Differs From Other Refinancing

Asset refinance means borrowing against equipment you already own, instead of equipment you're about to buy. The kit stays in your yard, on your road or on your factory floor. The lender takes security over it, advances you a lump sum, and you repay it in fixed monthly instalments.

It's easy to mix this up with two things we've written about separately, so let's clear that up:

• Refinancing a business loan is about replacing debt you already have with cheaper or longer debt. That's covered in our guide to refinancing business debt. Asset refinance is about raising new cash from assets that are debt-free (or close to it).
• Asset-based lending is a wider facility that can borrow against debtors, stock, property and machinery all at once. If you want that bigger picture, read our guide to asset-based lending. This article sticks to the simpler, more common deal: a fixed sum against your vehicles and equipment.

Who does it? Asset finance houses like Close Brothers, Capitalflow, Fexco and Finance Ireland, and the asset finance arms of AIB, Bank of Ireland and PTSB. Appetite varies a lot by asset type, which is where a broker earns their keep.

Sale and Leaseback vs Refinancing on Hire Purchase

There are two main ways to structure it. They put the same cash in your account, but they're not the same deal.

Sale and leaseback. You sell the asset to the finance company for an agreed price, and it leases the asset straight back to you. You get the sale price as cash, then pay rentals over the term. At the end, you usually keep using it for a nominal rent or sell it as the lessor's agent.

Refinancing on hire purchase. The finance company buys the asset from you and hires it back on HP, so ownership comes back to you when the final payment is made. Some lenders call this "HP refinance" or "equity release". It's the more common structure for vans, trucks and agricultural machinery.

Which is better? If you want to own the asset again at the end, go HP. If the asset is close to the end of its life and you'll replace it rather than keep it, a leaseback can make sense. The tax treatment differs between them (more on that below), so don't pick on the monthly figure alone. Our guide to hire purchase vs leasing explains how the two products differ in general.

What if the kit still has finance on it?

You can often still refinance. If you owe €15,000 on a truck worth €50,000, a lender can settle the existing agreement and advance against the equity left. It's a common way to release cash from a fleet that's mostly paid off.

How Lenders Value Your Equipment: Forced-Sale vs Market Value

This is the part that surprises people. So what's your kit actually worth to a lender?

Not what you paid for it, and not what a dealer would sell it for. Most lenders get an independent valuation, and many lend off the forced-sale value: what the asset would fetch if it had to be sold quickly, usually at auction, with no time to wait for the right buyer. That figure can sit well below the market value you'd get selling it privately with time on your side.

The lender then advances a percentage of that valuation. In the deals we see, that's typically 60 to 80%, depending on:

• The asset. A mainstream excavator or tipper truck from a big brand sells easily, so it gets a higher advance. A bespoke production line or a specialist piece of food equipment gets less.
• Age and hours. Most lenders want the asset still to have useful life when the agreement ends. Older vans and trucks get shorter terms or lower advances. Well-built plant gets more leeway.
• Your business. Strong accounts and a clean Central Credit Register record push the advance and the rate in your favour.

Bought something for cash in the last few months? Some lenders will refinance a recent purchase against the original invoice rather than a fresh valuation. If you've just paid cash for a big asset and regret draining the account, ask about it quickly.

Who does the valuation, and can you push back?

The lender usually appoints the valuer, often an auctioneer or a specialist plant and vehicle valuer, and you'll normally pay the fee. Expect a site visit for bigger items, and photos plus serial numbers, hours and registration details for the rest.

Can you influence the figure? Yes, within reason. Have the service history, recent repair invoices and any upgrades ready, and make sure the kit is clean and accessible on the day. A well-maintained machine with paperwork to prove it reads very differently from one that's caked in muck with no records. If you think the valuation is badly off, a second opinion from a respected auction house can help, but don't expect a lender to swap its valuer because you'd like a higher number.

Which Assets Qualify for Refinance (and Which Don't)

Here's our straight answer on what lenders like, and what they'll pass on.

Strong candidates:

• Vans, pickups, trucks, tippers and trailers.
• Construction plant: excavators, dumpers, telehandlers, rollers.
• Tractors, loaders and mainstream farm machinery.
• Forklifts and warehouse equipment.
• Production machinery with a real second-hand market: CNC machines, printing presses, packaging lines from known makers.

Hard or impossible:

• Fit-out work, shelving, flooring and anything bolted into a building.
• IT, phones and most office equipment. The resale value is too low.
• One-off or heavily customised kit that no one else could use.
• Assets you can't prove you own. No invoice and no proof of payment usually means no deal.

Worked Example: Releasing €120,000 From a Contractor's Fleet

Here's a typical case. A groundworks contractor owns, debt-free, a 14-tonne excavator, two tipper trucks and a mini-digger. They've a corporation tax bill coming and a new contract that needs a deposit on materials.

So the business raises €120,000, which is 60% of what the kit would sell for privately. It keeps working every machine, clears the tax bill and funds the contract. And the €2,986 a month is covered by the new contract's margin.

Would an unsecured loan do the same job? Possibly, and our fixed-term loans cover €30,000 to €300,000 without asset security. But secured on hard assets, the rate is usually lower, and for a business with patchy recent figures, the security can be the difference between a yes and a no. If construction is your trade, our guide to construction company finance covers the other funding tools contractors use.

When Asset Refinance Makes Sense, and When It Doesn't

The best refinance deals have one thing in common: a specific need with a clear way to pay it back.

Good reasons to refinance:

• A Revenue bill. Corporation tax, VAT or a preliminary tax payment that's landed at a bad time. Spreading it over a few years can be smarter than draining your working capital. We look at all the options in our guide to funding a tax bill.
• Growth. A new contract, a second site or a bulk stock deal where the extra margin covers the repayment.
• Rebuilding cash after big purchases. You paid cash for kit when you could have financed it, and now you need the money back in the business.

Bad reasons:

• Covering ongoing losses. If the business is losing money every month, refinance just delays the problem and puts your equipment at risk.
• Paying off debts that are cheaper than the new finance. Do the maths first.

What if you're already behind with Revenue or other creditors? It's harder, but not always impossible. Lenders will want to see a phased payment arrangement in place and a credible plan. Our guide to business loans with bad credit covers what lenders will and won't accept. And if the need is really ongoing cash flow rather than a one-off, a working capital facility may fit better.

The Tax and Paperwork Points to Sort Before You Sign

Two tax points to raise with your accountant before you commit.

First, selling an asset to a lessor can trigger a balancing charge. If you've claimed capital allowances and the sale price is above the asset's tax written-down value, you may have to pay back some of that relief. Second, the VAT and tax treatment of a sale and leaseback isn't the same as an HP refinance. Our guide to capital allowances on equipment explains balancing charges, but your accountant needs to run your actual figures.

On paperwork, have these ready and you'll move quickly:

• Original purchase invoices and proof of payment for each asset.
• Vehicle registration certificates for vans and trucks.
• Settlement letters for any finance still outstanding.
• Your last one or two years of accounts and recent bank statements.
• A current tax clearance certificate, or your phased payment arrangement if you have one.
• A short note on what the money's for and how it gets repaid.

Expect a valuation fee and a documentation fee on top of the interest. Ask for both upfront so you can compare offers properly.

Turn the Kit in Your Yard Into Working Capital

If your business owns good equipment outright, you're sitting on a funding source most owners forget about. Know what lenders will value it at, pick the structure that suits whether you want to own it again, check the tax with your accountant, and only borrow for something with a clear payback.

Get those right and asset refinance is one of the cheapest, cleanest ways to put cash back in your business without selling a single machine. Through our asset finance service, we'll get your kit valued and take it to the lenders with the strongest appetite for your type of asset.

Frequently Asked Questions