Sale and HP back is an easy and efficient way of releasing cash that is tied up in vehicles, machinery or equipment.

You sell the asset to a lender for an agreed price. You then take out a hire purchase agreement on the same asset, and make monthly payments over an agreed term.

You receive the cash from the sale, continue to keep and use the asset, and will own the asset again at the end of your hire purchase agreement.

Refinancing lets you reduce your monthly outgoings by taking out a new agreement with a better interest rate, or longer term. The new agreement will pay off any existing borrowing. The amount of money you can release when refinancing depends on the value of the asset and how much equity is available. Most lenders will let you borrow up to 75% of the asset’s value, less any existing finance.

For example, if you have an asset that’s worth £100,000, with a finance agreement that has £20,000 left to pay, most lenders would provide up to £75,000, clearing the existing finance and releasing £55,000 to you.

Refinancing can also be used to consolidate multiple finance agreements into one simple payment.