Working capital for growth
Release cash to fund stock, staff, a new contract or expansion without selling the equipment you rely on.
Capital release
Sale and HP Back: Releasing Cash from Equipment You Own
Sell equipment you already own to a lender and buy it back through hire purchase, so you keep using it while releasing cash, subject to valuation and the lender’s criteria.
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How sale and HP back works
Sale and HP back is a way of turning equipment you own outright into working capital. It is sometimes called capital release. It differs from a sale and leaseback, where you rent the asset instead of buying it back.
- A lender values the equipment
- The lender buys it from you at an agreed price
- You receive the cash, less any existing finance that has to be settled
- You repay the lender through hire purchase instalments over an agreed term and keep using the equipment
- You normally own the equipment again once the final payment is made
When it can help
Replacing other borrowing
In some cases it can replace shorter-term or more expensive borrowing, once the total cost has been compared.
Consolidating agreements
Several existing finance agreements can sometimes be brought together under one agreement with one monthly payment.
Funding a purchase or deposit
Cash from existing equipment can support the deposit on new equipment or another investment.
What lenders typically want to see
- Equipment that is identifiable, in good condition and has a resale market
- Clear ownership, meaning no outstanding finance or charges, or a plan to settle them
- Recent accounts and business bank statements
- A recent valuation, or the original purchase invoice
Tell us about the equipment
Tell us what you own, roughly what it is worth and what you want to achieve. We’ll come back to you with options. There is no obligation, and we don’t carry out a credit search at this initial stage.
Sale and HP back FAQs
Not usually. The amount released depends on the lender’s valuation and criteria, and it is often below what the owner expects.
Often, yes. Vehicles and fleets can be refinanced in the same way, subject to age, condition and valuation.
Yes. You keep the equipment in use throughout. If repayments are not made, though, the lender can take action under the agreement, so it is important to be sure the payments are affordable.
No. With sale and HP back, ownership passes to the lender during the agreement and returns to you when it is paid off. A loan secured against assets works differently.
Related
Sources
This page is general information only and is not legal, tax or financial advice. Figures come from the published sources listed on this page and were correct when last reviewed. Lender availability, terms and criteria vary and are subject to status and underwriting.
Paul Thompson, trading as Acorn.finance, is authorised and regulated by the Financial Conduct Authority (FRN 660207). Not all of the finance we arrange is regulated by the FCA.
Last reviewed: 11 November 2026