Quick answer

Yes — it is usually possible for UK businesses to finance pre‑owned equipment and older machinery. Eligibility depends on the asset’s age, condition, market value and the lender type. Specialist asset finance providers and brokers often offer flexible options for used kit, especially for equipment over £10,000. Complete a Free Eligibility Check to be matched with lenders or brokers who accept second‑hand machinery.

Get Quote Now — Free Eligibility Check (takes under 2 minutes • no obligation)

Why businesses buy pre‑owned machinery

Buying used equipment is a common, practical choice for many industries. Benefits include:

• Lower capital outlay — second‑hand machines cost less than new equivalents.
• Faster availability — less lead time than ordering new kit.
• Reduced depreciation hit — much of the initial depreciation has already occurred.

Typical examples: construction excavators, manufacturing CNC machines, catering and kitchen equipment, commercial vehicles and agricultural tractors. The main trade-offs are potentially higher maintenance needs, shorter remaining useful life and typically smaller or expired manufacturer warranties.

Want to explore finance for specific used assets? Read more about our wider business finance options on our business finance page.

Which types of finance cover second‑hand equipment?

Several finance products can be used to acquire used equipment. Your best option depends on the asset, its value and how long you need to use it.

Asset finance (hire purchase & leasing)

Asset finance is the most common route. Hire purchase lets you spread payments and usually transfer ownership at the end. Finance leases are available too. Many asset finance lenders accept used kit — especially when it has a clear service history and residual market value.

Specialist equipment finance

Some lenders and brokers specialise in second‑hand machinery for sectors such as construction, agriculture and manufacturing. They understand age, usage hours and valuation nuances and can often structure short‑term or bespoke deals.

Commercial loans (secured or unsecured)

A term loan can fund an equipment purchase if the lender permits. Secured loans (using business assets as collateral) are more likely for older kit; unsecured loans are rarer for large purchases.

Invoice finance & short-term bridging

If you need to bridge a purchase while awaiting customer payments, invoice finance or short-term working capital can help — then you refinance into asset finance if needed.

Each product has pros and cons for used equipment; a specialist broker can advise which fits your plans best. Free Eligibility Check

How lenders assess older machinery

Lenders evaluate used assets on a set of practical criteria. Knowing these in advance improves your chances of a favourable result.

• Age and model: Some lenders set maximum age limits for certain equipment; others base decisions on residual value and parts availability.
• Condition & maintenance history: Full service records, proof of recent servicing and evidence of low downtime increase lender confidence.
• Hours of use / run hours: For plant and machinery, operating hours are treated like mileage on a vehicle.
• Current market value & depreciation: A third‑party valuation or recent sales evidence helps set finance levels.
• Expected remaining useful life: Lenders compare term length to remaining productive life — short terms often work better for older assets.
• Security & title: Many lenders will hold title (hire purchase) or take a charge against the asset until the loan is repaid.
• Business profile: Trading history, turnover, profitability and previous lending record all influence offers.

Practical tip: prepare photos, serial/VIN numbers and service logs before you enquire — this speeds up matching and valuation. Ready to start? Get Quote Now — Free Eligibility Check.

Common lender restrictions and how to work around them

Typical restrictions include maximum age caps, limits on run hours, or approved makes/models. If a lender declines, these workarounds often help:

• Offer a larger deposit to reduce the lender’s exposure.
• Choose a shorter finance term aligned to the asset’s usable life.
• Use a specialist broker who knows lenders accepting older kit.
• Obtain a formal valuation and documented maintenance contract to reassure lenders.

If you’re unsure which lenders will consider your asset, our matching service can introduce you to partners who regularly finance second‑hand equipment. Free Eligibility Check.

What costs and terms should I expect?

Costs vary widely by lender, asset age, condition and borrower profile. Common elements include:

• Deposit (often 0–30% depending on age and value).
• Interest (fixed or variable) plus arrangement/admin fees.
• Term length — older assets typically suit shorter terms.
• Balloon or final payment options to reduce monthly cost.
• VAT treatment — often payable on purchase or on rentals depending on structure.

Illustrative (non‑guaranteed) example: for a £40,000 used excavator, a lender might offer hire purchase with a 10–20% deposit and a 2–5 year term. Monthly payments depend on rate, deposit and term. Exact pricing requires a personalised quote — get one via our form.

Get a tailored quote — no obligation

How UK Business Loans helps you finance used machinery

We are an introducer that matches UK businesses with lenders and brokers experienced in asset and equipment finance. Our process is simple:

1. Complete a short enquiry form (under 2 minutes).
2. We match your request to specialist lenders and brokers who accept used equipment.
3. Selected partners contact you with quotes and next steps.

We only share your details with relevant partners to find the best fit for your situation. Our service is free and carries no obligation — the enquiry is not an application and won’t commit you to anything. If you’re ready, Get Started — Free Eligibility Check.

For more on broader options and finance types see our business finance information page.

Ready‑to‑apply checklist: documents & information lenders want

Prepare these items to speed up the quoting process:

• Company details (registered name, address, and contact).
• Recent business accounts / management accounts.
• VAT returns (if applicable) and bank statements.
• Asset details: make, model, serial/VIN, year, current mileage/hours, photos.
• Service history and recent invoices for maintenance.
• Current valuation (if available) or broker/auction comparables.
• Estimate of intended use and location (on‑site, mobile, export risks).

Have this ready and complete our form for faster, more accurate quotes: Complete the 2‑minute form.

Frequently asked questions

Can I fund second‑hand equipment through UK Business Loans?

Yes. We introduce businesses to lenders and brokers that finance used equipment. Eligibility depends on asset age, condition, value and business profile.

Do lenders finance very old machinery (10+ years)?

Some will — typically specialist lenders. Expect shorter terms, higher deposits or stricter valuation and maintenance requirements. A specialist broker improves your chances.

Are there age limits or depreciation rules?

Many lenders apply age or hours limits and factor depreciation into the loan amount. If the asset has limited remaining life, lenders may offer shorter terms or lower LTV (loan to value).

Will financing used equipment affect my rates?

Possibly. Older equipment can attract higher pricing or stricter terms, but competitive options often exist — especially when you work with lenders experienced in that sector.

Is a valuation required?

Usually yes. Lenders want a current market valuation or comparables to set finance levels. Having a valuation ready speeds approvals.

Still unsure? Get a free, no obligation quote and see which lenders will consider your equipment.

Important information

UK Business Loans is an introducer — we do not lend money or provide regulated financial advice. Completing an enquiry is not an application; it helps us match you to lenders or brokers who may contact you. Offers from lenders are subject to their eligibility, affordability and documentation checks. Submitting an enquiry will not affect your credit score.

Read our Privacy Policy and Terms & Conditions for details on how we handle your data.

Get matched in hours — Start your free eligibility check

If you need to finance pre‑owned equipment worth £10,000 or more, we can match you to lenders and brokers who specialise in used machinery. Complete our short form to receive tailored quotes quickly.

Get Quote Now — Free Eligibility Check