Do second‑hand or refurbished energy‑efficient assets qualify for asset finance?

Sub‑headline: Yes — many lenders will finance second‑hand or refurbished green equipment. Exact terms depend on age, condition, valuation and intended use.

Get a free eligibility check and quick quotes from specialist lenders and brokers. No obligation.

Get Quote Now – Free Eligibility Check  •  Call us: 01234 567890

---

---

Quick answer (TL;DR)

Yes — second‑hand and refurbished energy‑efficient assets can often qualify for asset finance. Approval depends on asset type, age, condition, independent valuation, warranty/maintenance arrangements and lender appetite. Some lenders have dedicated sustainability products that will accept refurbished kit; others apply strict age or life‑left limits, especially for batteries and rapidly evolving technologies. Read on for practical guidance to improve your chances and to get matched quickly with suitable lenders or brokers.

Get Started — Free Eligibility Check

---

Introduction — why this matters

Buying used or refurbished energy equipment can cut capital expenditure by 30–50%, making sustainability projects more affordable. Many UK businesses — from manufacturing to hospitality — now ask whether asset finance will support second‑hand solar PV arrays, refurbished heat pumps, EV chargers or industrial motors. The misconception that only new kit qualifies is outdated. In practice lenders will finance used green equipment where they can verify remaining useful life, resale value and safety. This page explains what lenders check, typical limits, the documentation you need, and how to accelerate approval.

Free Eligibility Check

---

What lenders typically look for (eligibility checklist)

When assessing finance for second‑hand or refurbished green assets, lenders and brokers focus on a core set of criteria. Present these clearly and you dramatically improve approval odds.

• Asset type & demand: Lenders prefer assets with a proven secondary market (e.g., solar PV, EV chargers, industrial motors). Some assets — notably batteries and fast‑moving tech — attract more conservative underwriting.
• Age and remaining life: Expect limits based on manufacture date or assessed remaining useful life. Lenders commonly require at least 50–60% of life remaining for some asset classes.
• Condition and refurbishment quality: Certified refurbishment, photographic evidence, refurbishment reports and replacement parts records raise confidence.
• Independent valuation & resale value: An up‑to‑date independent valuation and a clear remarketing plan (who will buy it used) are essential.
• Proof of ownership / clear title: Invoices, transfer documents and lien searches to show the asset is free of third‑party claims.
• Use case and cashflow impact: Evidence the asset will reduce operating costs or increase revenue (energy savings reports, M&V forecasts) helps lenders underwrite the deal.
• Warranties and maintenance: Existing or extended warranties and service contracts materially improve terms and acceptance rates.
• Compliance & safety certificates: Electrical safety, CE markings, MCS for renewable installations and installation certifications where applicable.

If you meet most of the above, you’ll be in a strong position to secure hire purchase, leasing or specialist sustainability finance.

Get a free eligibility check

---

Types of energy‑efficient assets (new vs used)

Common asset types include:

• Solar PV (panels, inverters)
• Battery storage and hybrid systems
• Heat pumps, biomass boilers and CHP
• EV chargers and electrical infrastructure
• LED lighting & controls, efficient motors and drives

New kit usually gets the easiest terms. For used/refurbished equipment, drivers of acceptance are proven performance (for PV: degradation tests), refurbishment standards, and expected life vs finance term.

---

How finance for second‑hand/refurbished green kit works (product types)

Several asset finance products are used to fund refurbished equipment. Which is most appropriate will depend on ownership preference, tax treatment and lender rules.

• Hire Purchase (HP): You take title once the final payment is made. Lenders will consider HP when asset value and life‑left align to the term.
• Finance Lease: The lender owns the asset; you pay rentals. Useful where residual value and remarketability are strong because the financier manages the asset lifecycle risk.
• Operating Lease: Shorter terms and off‑balance sheet rentals (subject to accounting rules). Lenders are picky about used assets for operating leases unless refurbishment is recent.
• Sale & Leaseback / Refinance: If you already own refurbished green assets, you may release capital by selling them to a funder and leasing them back.
• Green or sustainability‑focused loans: Some specialist lenders have sustainability lines that will accept refurbished kit when accompanied by carbon‑savings evidence and appropriate warranties.

Example: A manufacturer secured a 36‑month HP for a refurbished industrial heat pump after providing an independent condition survey and a 2‑year service contract — the lender accepted a shorter term to match expected life‑left.

---

Practical checks, valuations & documentation you need

Prepare the following to speed approval:

1. Independent condition survey/valuation: Use an accredited inspector — include remaining useful life and performance measures.
2. Refurbishment certificate & photos: Before/after imagery and signed refurbishment notes from the vendor.
3. Warranty or maintenance plan: Even a paid service contract for 12–24 months helps considerably.
4. Proof of ownership & clear title: Original invoice, supplier records and evidence any prior lease was terminated.
5. Energy savings or revenue model: Simple M&V or projected savings spreadsheet showing payback or benefit.
6. Compliance documentation: Installation certificates, electrical safety reports, CE/MCS documentation if applicable.
7. Company accounts & basic financials: Recent accounts and short cashflow forecast to show affordability.

Micro‑tip: If the equipment was previously leased, get end‑of‑lease paperwork showing the asset is free to re‑lease or sell — many lenders will decline assets with unresolved lease liens.

Need help preparing documents? Get a free eligibility check

---

Typical lender policies, age limits and appetite (with examples)

There’s wide variation across lenders. Typical illustrative ranges (not guarantees):

• EV chargers, LED, small electrical kit: May be accepted up to 5–7 years old if well maintained and warranted.
• Heat pumps, CHP and heavy plant: Often accepted up to 3–5 years from manufacture unless recently overhauled.
• Battery storage: More restrictive due to fast tech change and degradation — lenders expect strong warranties and short terms.

Mini case studies (anonymised):

• A brewery financed a refurbished biomass boiler (HP, 48 months) after an independent valuation confirmed 70% life‑left and a 3‑year service contract.
• A fleet operator leased used EV chargers—lender required proof of firmware updates and a 24‑month maintenance contract to proceed.

Policies vary. Submit an enquiry so we can match your asset to lenders known to accept refurbished kit.

---

Tax, accounting and grant interactions (high‑level)

Important high‑level points (not tax advice):

• Tax treatment differs by product: HP often allows capital allowances; lease structures affect VAT and accounting — consult your accountant.
• Some grant schemes or incentive programmes may exclude refurbished equipment — always check scheme terms before funding.
• Combining grants with finance is possible but requires disclosure to lenders; some lenders insist on knowing grant status before issuing offers.

We don’t provide tax advice — speak to your accountant to confirm the best structure for capital allowances, VAT and grant compatibility.

Check grant compatibility and get a quote

---

How UK Business Loans can help

We introduce UK businesses to lenders and brokers who specialise in asset finance and sustainability projects. We are not a lender and do not provide regulated financial advice — we match your enquiry to partners best placed to help.

Our simple process:

• Complete a short enquiry (takes around 2 minutes)
• We match your request to lenders/brokers that accept refurbished/sustainability assets
• You receive contact and quotes — compare and choose with no obligation

Loans and finance we arrange typically start at £10,000 and above. Ready to see options?

Get Quote Now — Free Eligibility Check

---

Frequently asked questions

Are refurbished solar panels eligible for finance?

Often yes — provided there’s an independent performance test, a refurbishment certificate and an acceptable warranty or service contract. Lender rules vary by panel age and degradation.

Will lenders accept equipment older than 5 years?

Depends on asset type and condition. For many large plant items lenders prefer under 5 years or recently overhauled assets; small electrical items may be accepted older if warranted.

Can I finance a refurbished heat pump?

Yes — if you supply a condition survey, installation paperwork and a maintenance plan. Lenders often shorten the term to match remaining life.

Do I need a warranty to get finance for used equipment?

Strongly preferred. The better the warranty or service contract, the more competitive the terms and higher the acceptance rate.

Does submitting an enquiry affect my credit score?

No — completing our short form is a soft, non‑credit process. Lenders may run credit checks later if you progress with an offer.

How quickly can I get quotes?

Many businesses receive contact within hours to 48 hours after submitting the enquiry, depending on asset complexity.

---

Final summary & next steps

In short: second‑hand and refurbished energy‑efficient assets can qualify for asset finance — but success depends on asset type, age, independent valuation, warranty/maintenance cover and lender appetite. Preparing clear documentation and an independent condition report will materially increase the chance of approval and better terms.

Next step: Complete a short enquiry so we can match your asset to lenders and brokers who finance refurbished sustainability equipment. No obligation — quick responses.

Get Quote Now — Free Eligibility Check

---

Trust & compliance

• We introduce businesses to lending partners and brokers; we are not a lender and do not give regulated financial advice.
• Your data is shared only with selected lenders/brokers who can help with your enquiry.
• Typical finance we arrange starts from around £10,000 upwards.

For more on financing sustainability projects see our page on Sustainability Loans.

Privacy Policy | Terms & Conditions | Complaints

---

1. Can I get asset finance for second‑hand or refurbished energy‑efficient equipment? — Yes — many UK lenders and specialist funds will finance refurbished or second‑hand green kit provided age, condition, valuation and warranties meet their criteria.

2. What types of refurbished energy assets are most likely to be financed? — Lenders favour assets with proven secondary markets such as solar PV (panels/inverters), EV chargers, LED lighting and industrial motors, while batteries and rapidly evolving tech are more conservative.

3. How old can equipment be to qualify for asset finance? — Age limits vary by asset but lenders commonly require a significant remaining useful life (often 50–60% life‑left), typically up to 3–5 years for heavy plant and 5–7 years for small electrical kit.

4. Do I need an independent valuation or condition survey to get finance for refurbished kit? — Yes — an accredited independent survey or valuation that confirms remaining life, performance and resale value is usually required.

5. Is a warranty or maintenance contract necessary to secure finance for used green equipment? — Strongly preferred — existing or extended warranties and service contracts materially increase acceptance rates and can improve terms.

6. What documents should I prepare to speed up approval for refurbished asset finance? — Prepare an independent condition survey, refurbishment certificate and photos, proof of ownership/clear title, compliance and installation certificates, and recent company financials.

7. Can I use grants together with asset finance for refurbished energy‑efficient assets? — Sometimes — grant compatibility depends on the specific scheme and must be disclosed to lenders, who may have conditions on using grants with financed assets.

8. Will submitting an enquiry via UK Business Loans affect my credit score? — No — completing the short enquiry is a soft, non‑credit process, though individual lenders may run credit checks later if you progress with an offer.

9. How quickly can I get quotes for financing refurbished sustainability equipment? — Many businesses receive contact and initial quotes within hours to 48 hours of submitting an enquiry, depending on asset complexity and documentation.

10. Which finance products are used to fund second‑hand energy‑efficient equipment? — Common options include hire purchase, finance leases, operating leases, sale & leaseback and specialist green loans, with the best choice depending on ownership preference, tax treatment and lender rules.