Quick answer — summary

Yes — you can often finance used or refurbished equipment through the lenders and brokers we introduce. Asset finance for second‑hand equipment is a common solution for businesses that need to preserve cashflow while acquiring working kit. Approval depends on the asset’s residual value, age and condition, plus your company’s trading history and the chosen product (hire purchase, lease, etc.). UK Business Loans is an introducer: complete a short enquiry for a Free Eligibility Check and we’ll match your case to specialist lenders/brokers (we typically arrange facilities of £10,000 and above).

What is “used / refurbished equipment finance”?

“Used” equipment finance covers funding for second‑hand assets sold in working order. “Refurbished” or “reconditioned” equipment has been repaired, tested and restored to a defined standard — often with a refurbishment certificate or limited warranty.

Common finance products used for second‑hand equipment:

• Hire Purchase (HP) — spread payments and usually own the asset at the end.
• Finance Lease / Operating Lease — pay to use the asset for a term, with different end‑of‑term options.
• Lease Purchase — combines lease and purchase elements, common for vehicles and plant.
• Asset refinance — release cash from equipment you already own.
• Vendor finance — facilitated by the supplier, sometimes for refurbished items.

Typical asset types funded: construction plant and machinery, commercial vehicles, manufacturing presses, catering equipment, medical and dental devices, IT hardware and industrial tooling. Lenders treat used/refurbished equipment differently from new kit because of faster depreciation and potential maintenance risk.

Which lenders will fund used or refurbished equipment?

There is a broad market for used equipment finance. The main types of providers are:

• Specialist asset finance lenders — focused on machines, plant and sector‑specific equipment; often most flexible on age and mileage.
• Independent brokers — have panels of lenders and find those with appetite for older or refurbished assets.
• Vendor / supplier finance — attractive when the refurbisher or seller offers packaged funding and warranty.
• Regional or challenger banks — may fund used assets for established businesses with strong covenants.

Some lenders will take older assets provided resale value is clear and the asset can be repossessed and remarketed easily. Specialist lenders often lead on harder-to-place items (e.g., farm machinery, construction plant, refurbished medical equipment).

Using a broker increases chances of matching with lenders that accept your specific asset. If you’d like to see options quickly, Get Quote Now and we’ll connect you to partners who handle used equipment cases.

What factors affect approval for used or refurbished equipment?

Underwriters assess both the asset and the business. Key factors include:

Equipment age & usage

For plant and vehicles lenders look at model year, operating hours and odometer mileage. Older or high‑hour assets may still be acceptable to specialist lenders if residual value remains.

Condition & refurbishment standard

Evidence of professional refurbishment (certificates, photos, test reports, warranty) improves prospects. Cosmetic-only refurbishments are less persuasive than mechanical rebuilds or component replacements.

Residual / resale value

Lenders need confidence they can recover value if necessary. Assets with healthy secondary markets (e.g., vans, excavators) are easier to finance than highly specialised tooling with limited buyers.

Business profile

Trading history, turnover, profitability, and credit performance all matter. Strong financials can offset older asset age.

Deposit & term

A higher deposit or shorter term reduces lender risk and improves chances. Expect lenders to ask for 10–30% or equivalent depending on asset and condition.

Documentation & security

Provide photographs, serial numbers, service records, purchase invoices and any warranty or refurbishment paperwork. Correct insurance and maintenance arrangements are usually required.

How to improve approval chances: get a refurbishment certificate, supply full service history and clear photographs, offer a larger deposit, and use a broker experienced in your sector.

Typical finance options, terms and costs for used equipment

Product choice will depend on your tax preferences, balance sheet treatment and how long you plan to use the asset. Typical options:

• Hire Purchase (HP) — fixed monthly payments, ownership transfers at the end. Common for older assets. Pros: predictable cost, eventual ownership. Cons: asset on balance sheet; may require deposit.
• Finance Lease — you effectively rent the asset; lender retains ownership. Pros: lower upfront cost for some businesses. Cons: may have end‑of‑term charges.
• Operating lease / rental — short‑term use without ownership; useful when you want flexible replacement cycles.
• Vendor finance — often available when buying from refurbishers who partner with lenders; can include refurbishment warranties.
• Asset refinance — release equity from assets you already own to fund working capital or other purchases.

Rates for used/refurbished equipment can be higher than for new assets due to perceived risk. Expect variability: lender, asset class, borrower credit and term drive pricing. VAT treatment depends on the contract — check with your accountant.

Tax and accounting considerations

Tax treatment differs by product: buying outright or HP may allow capital allowances (including Annual Investment Allowance where applicable), while lease rentals are often treated as an operating expense. The right choice can affect cashflow and corporation tax. UK Business Loans does not provide tax advice — consult your accountant to confirm the optimal structure for your business and asset.

Practical examples

Want a similar outcome? Start your Free Eligibility Check — our enquiry takes around 2 minutes and helps us match you to the right providers.

How UK Business Loans helps — our process

We don’t lend. We introduce your business to specialist lenders and brokers who may fund used or refurbished equipment. Our matching service is free and non‑binding — submitting an enquiry is not a loan application.

1. Complete a short enquiry form (takes under 2 minutes).
2. We assess your needs and match you to lenders/brokers with appetite for your asset type.
3. Lenders or brokers contact you with quotes — often within hours for straightforward cases.
4. Compare offers and decide which solution suits your business.

We typically help arrange facilities from around £10,000 upwards. Ready to be matched? Get Quote Now.

FAQs

Can I use UK Business Loans to finance used or refurbished equipment?

Yes — UK Business Loans will match you to lenders and brokers that finance used or refurbished equipment. Each lender sets its own criteria; we recommend supplying full asset details to get accurate quotes.

Are there age limits on used equipment?

Many lenders have age or operating‑hours limits for certain asset types. Specialist lenders sometimes accept older assets if residual value and condition are strong.

Do refurbished assets need warranties?

Warranties or refurbishment certificates significantly improve approval chances because they reduce maintenance uncertainty for lenders.

Will an enquiry affect my credit score?

Submitting an enquiry via UK Business Loans is not a formal loan application and will not affect your credit score. Lenders or brokers may perform credit checks later when assessing an application.

How long to receive a quote?

For simple, well‑documented requests lenders often respond within hours. Full approvals vary but commonly complete within 48 hours to two weeks depending on the asset and documentation.

Who pays fees?

Our introduction service is free to businesses. Any lender or broker fees will be disclosed by them before you proceed.

Still unsure? Free Eligibility Check.

Next steps — get a fast quote

If you’re considering financing used or refurbished equipment, the quickest way to explore options is to tell us about the asset and your business. We’ll match you to lenders/brokers with the most relevant appetite so you can compare offers quickly and without obligation.

Get Quote Now — Free Eligibility Check

We handle your details securely and only share them with partners that can help with your request. Completing the enquiry is not an application — it’s a quick way to see who can fund the equipment you need.