Summary — short answer

Yes — many UK lenders and specialist brokers will consider asset finance for good‑quality second‑hand or refurbished green equipment. Approval depends on the asset’s age, condition, refurbishment history, remaining useful life and resale value, plus your business finances and the lender’s policy. Typical solutions include hire purchase, leases and sale & leaseback. UK Business Loans can quickly match you with lenders and brokers who specialise in used green kit — Get a Free Eligibility Check to see what you could access.

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Why finance for used green kit matters

Buying second‑hand or refurbished renewable and energy‑efficient equipment can dramatically reduce capital outlay and embodied carbon while delivering faster project payback. For businesses planning retrofit projects, EV fleet upgrades or renewable installs, asset finance preserves working capital and spreads cost over the asset’s useful life.

Common examples where used/refurbished kit is attractive: solar PV panels and inverters, battery storage, EV chargers for fleets, refurbished heat pumps, energy‑efficient industrial machinery, LED retrofit kits and used electric vehicles for commercial fleets.

How asset finance for second‑hand green equipment works in the UK

Asset finance options used for second‑hand green equipment are broadly the same as those for new kit, but lenders apply different underwriting because residual value and reliability are less certain.

Common finance types

• Hire purchase (HP) — staggered payments with eventual ownership after the final payment.
• Finance lease — long term hire where the lender retains ownership; options at term include returning or purchasing the asset.
• Operating lease — lower monthly cost, no ownership at term (useful for high‑turnover technology).
• Sale & leaseback — free up capital by selling an owned asset to a funder and leasing it back.
• Commercial hire purchase — common for vehicles and plant when ownership is intended.

Typical process

1. Provide asset details (make, model, serial numbers, refurbishment reports).
2. Valuation and lender appetite check.
3. Agreement of terms (advance rate, term, fees, deposit if required).
4. Documentation, delivery/installation and commencement of repayments.
5. End‑of‑term options: own, return, renew or refinance.

Because used kit is riskier, expect lower advance rates and shorter maximum terms compared with new equipment. Ready to check eligibility? Get a Free Eligibility Check.

What lenders and brokers will check before agreeing finance

Lenders assess both the asset and the business. Supplying clear evidence up front improves your chances.

• Equipment age and expected useful life — lenders want remaining life to comfortably cover the finance term. Tip: provide manufacturer guidance or independent life estimates.
• Make, model and serial numbers — enables verification and valuation. Tip: include photos and serial plate images.
• Hours used / mileage (for vehicles/machinery) — a key durability indicator.
• Condition reports and refurbishment records — receipts, lists of replaced components and photos. Tip: use a recognised refurbisher and upload its report.
• Warranty or service contract — even short or limited warranties raise lender confidence.
• Certifications / test reports — e.g., MCS testing for solar, NICEIC/EIC for electrical installations, safety tests for chargers.
• Estimated resale/residual value — affects advance rate. Tip: get a broker valuation or market comparables.
• Supplier/dealer reputation — kit from approved dealers or known refurbishers is favoured.
• Business credit profile, turnover and deposit — lender underwriting will consider ability to repay; some deals require a deposit or personal guarantees depending on structure.
• Intended use — operational use vs rental changes risk and valuation.

Practical tip: assemble a concise pack (photos, service history, invoice or purchase contract, refurbishment certificate) to speed approvals.

Get a Free Eligibility Check — we’ll match you to lenders who regularly finance used green equipment.

Types of second‑hand green equipment lenders commonly finance

Specialist lenders and brokers will consider a wide range of green assets when presented with good supporting evidence:

• Solar PV systems & inverters — refurbished modules with test reports and inverter service history are often accepted.
• Battery storage — certified refurbished units and capacity/performance testing help approval.
• EV chargers (fleet & public) — installed, certified chargers with recent electrical inspection reports qualify.
• Heat pumps & HVAC — refurbished heat pumps with service/commissioning records.
• Electric vehicles (fleet EVs) — right down to mileage, battery health reports and service history.
• Energy‑efficient manufacturing equipment & LED retrofits — where refurbishment increases reliability and documented savings exist.

Note: some lenders restrict by brand or age — a broker match will surface those best placed for your specific equipment.

What costs and repayment terms should you expect?

Costs vary by lender, asset type and the evidence you provide. The main drivers are residual value uncertainty and the asset’s remaining life.

• Advance rates — typically lower than for new kit; a common range is 40–80% of the asset value depending on condition and resale market.
• Terms — usually between 1 and 7 years, matching expected useful life; shorter for batteries and electronics, longer for vehicles and HVAC.
• Deposits — may be required (0–30%) where residual risk is higher.
• Fees — arrangement, valuation and documentation fees can apply.
• Interest / finance cost — varies significantly by provider and risk; lenders will quote based on your case. Rates are illustrative only when provided by lenders, not guaranteed.
• VAT — treatment depends on the asset and whether the business is VAT‑registered; speak with your accountant when structuring deals.

Example scenario (illustrative): a refurbished 50kW solar+small battery valued at £60,000 might secure a 60% advance with a 4–5 year term; exact quotes depend on refurbishment certification and business strength.

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Benefits and risks of financing used or refurbished green equipment

Benefits

• Lower upfront cost vs new equipment
• Faster payback and improved short‑term ROI
• Reduced embodied carbon — supports circular economy goals
• Enables quicker fleet or site upgrades without large capital spend

Risks

• Potentially shorter remaining life and higher maintenance costs
• Lower resale value and harder valuations
• Warranty gaps — refurbished kit may have limited or no manufacturer warranty
• Some lenders may impose stricter covenants or require higher deposits

How to mitigate risk

• Get an independent inspection and a written condition report.
• Buy from reputable refurbishers who provide test certificates.
• Negotiate a service or maintenance contract to cover critical components.
• Use a broker to identify lenders comfortable with the asset type and age.

How UK Business Loans can help you secure finance for refurbished green equipment

We introduce businesses to a panel of lenders and specialist brokers experienced in asset finance for sustainability projects. Complete a short enquiry and we’ll match you with partners most likely to offer competitive terms for your second‑hand green kit.

We commonly arrange finance for projects from £10,000 upwards and aim to connect you quickly — often receiving initial contact within hours during working days.

For more on the types of sustainability funding we support, see our page on sustainability business loans.

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Quick checklist — what to prepare before you apply

Preparing these documents will speed lender decisions:

• Photos of the asset, serial numbers and installation
• Refurbishment report, service history and invoices
• Manufacturer specifications and expected remaining life
• Electrical safety certificates, commissioning reports or MCS/NICEIC evidence
• Supplier quote or purchase invoice showing price and scope (including installation)
• Latest business accounts, recent bank statements and turnover bands
• Planned use case and projected energy savings (if relevant)

What lenders may request next: independent valuation, PAT/test reports, proof of warranty transfers and director ID for due diligence.

Frequently asked questions

Can all lenders finance refurbished solar panels?

Some lenders do, but they usually require performance testing, refurbishment records and an opinion on remaining output. Lenders vary — a broker match will find the best fit for your system.

Will second‑hand EV chargers be eligible for asset finance?

Yes — provided they are installed and have recent electrical inspections and a clear service/condition history. Public‑facing chargers may need extra proof of reliability and warranties.

Do I need a deposit to finance used green equipment?

It depends. Some deals require no deposit but lower advance rates; riskier assets or weaker business profiles may trigger deposits up to 30%.

Will applying affect my business credit score?

Submitting an enquiry through UK Business Loans does not affect your credit score. Lenders or brokers may carry out credit checks later, usually with your consent.

Can I include installation or refurbishment costs in the finance?

Often yes — if costs are directly tied to the asset and increase its value or life. Include supplier invoices and quotes when you apply.

Is asset finance the same as a bank loan?

Not exactly. Asset finance is secured against the equipment and often structured around the asset’s life, whereas unsecured bank loans rely primarily on the borrower’s credit and may be used for broader purposes.

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Final summary — can you get finance for second‑hand green equipment?

Short answer: often yes. The best chance of approval comes when you present clear refurbishment and testing evidence, select a lender/broker who specialises in the asset type, and match the finance term to the remaining useful life. If you’re ready to explore options for equipment valued from £10k upward, complete a short enquiry and we’ll connect you with lenders and brokers who can provide quotes.

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