Asset-backed equipment finance for used agricultural machinery — Agriculture business loans

Summary (quick answer): Yes — many lenders and brokers we introduce can provide asset-backed equipment finance for used farm machinery. Funding depends on the machine’s make/model/age/condition, its market resale value, and your business profile. Typical solutions include hire purchase, chattel mortgage, finance leases and specialist asset refinance. For a fast, no‑obligation match to lenders who will consider used kit, complete a Free Eligibility Check.

Quick answer — can used farm machinery be asset‑financed?

Short answer: yes. Many specialist asset finance houses and brokers will consider used agricultural machinery for asset‑backed finance. Approval is conditional on the machine’s value and condition, how easily it resells, and the borrower’s business financial position. High‑street banks can be more conservative; specialist lenders and brokers are often more flexible and will consider older or higher‑hour equipment.

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What is asset‑backed equipment finance?

Asset‑backed equipment finance uses the equipment itself as security for the funding. Common structures include:

• Hire Purchase (HP) — you hire the asset and own it after the final payment.
• Chattel mortgage — you take ownership up front and the lender takes a charge against the asset.
• Finance lease — lender retains ownership, you pay for use over the term.
• Asset refinance — releasing cash from equipment you already own.

For agriculture, asset‑backed finance is common because farm machinery (tractors, combines, balers, sprayers) typically retains enough resale value to secure loans that lenders view as lower risk than unsecured borrowing.

Can used agricultural machinery be financed?

Yes — but availability and terms vary. Typical lender positions:

• Specialist asset finance companies: Often prepared to fund used kit, especially reputable makes and models with strong second‑hand demand.
• High‑street banks: May restrict lending to newer assets or require stronger business credit and lower LTVs for used machinery.
• Brokers and non‑standard lenders: Can access specialist funds that consider older or unusual equipment.

Typical age and condition guidance (indicative only): many lenders will fund equipment up to 7–10 years old; specialist providers may accept older assets if valuation and resale demand are strong. Lenders look at hours/use, maintenance history and model reliability — not just the age.

Free Eligibility Check — find lenders that consider used kit

Types of asset‑backed finance and how they suit used kit

Which product fits depends on your goal (owning the asset vs short‑term use) and lender appetite:

• Hire Purchase (HP) — common for used machinery. Fixed monthly payments; ownership transfers after final instalment. Good when you want ownership and predictable costs.
• Chattel Mortgage — similar to HP but structured like a secured loan with a charge on the asset. Often used where tax or accounting treatment matters.
• Finance Lease — lender owns the asset; you pay to use it. Lower monthly cost possible, useful if you expect to upgrade before the end of the term.
• Asset Refinance — release cash from equipment you already own to boost working capital.
• Operating lease / short hire — less common for older kit but available for seasonal or short‑term needs.

What lenders look for when assessing used equipment

Lenders typically need:

• Asset details: make, model, serial/VIN, year and hours/mileage.
• Photographs from multiple angles and location of the asset.
• Service history and maintenance records.
• Original purchase invoice or recent supplier quotation.
• Market comparables / evidence of resale demand.
• Insurance details and security (e.g. stored on farm vs off‑site).
• Business accounts, management information and director ID as part of credit assessment.

Practical tips to improve chances:

• Provide clear photos and recent service records.
• Obtain an independent valuation if the kit is older or unusual.
• Be transparent about hours/use and any repairs needed.
• Have up‑to‑date business accounts available (safer with stronger trading history).

Get Started — Free Eligibility Check

Typical terms, LTV and costs for used machinery

Terms vary, but you can expect:

• Minimum loan sizes: lenders we work with usually consider requests from around £10,000 upwards.
• Loan‑to‑Value (LTV): for used equipment this is often lower than for new kit — typically 50%–80% depending on age and condition.
• Deposit: some deals require 0–20% initial deposit depending on LTV and lender risk appetite.
• Terms: 1–7 years is common for machinery; shorter terms may match remaining useful life of asset.
• Rates: depend on lender, asset age and business credit. We do not publish guaranteed rates — speak to lenders for indicative quotes.
• Additional costs: independent valuations, documentation fees and insurance requirements may apply.

Pros & cons of asset‑backed finance for used machinery

Pros

• Often lower cost than unsecured borrowing because the asset reduces lender risk.
• Preserves working capital — you can keep cash for operations while acquiring kit.
• Access to specialist lenders who understand agricultural equipment and seasonal cashflow.

Cons

• The asset is security — missed payments can lead to repossession.
• Depreciation can outpace the outstanding balance on older equipment.
• Valuation disagreements may delay or reduce the amount lenders will advance.

Alternatives to asset‑backed finance

Depending on your needs, alternatives include:

• Working capital loans or overdrafts for short‑term cashflow needs.
• Invoice finance to unlock cash tied in receivables.
• Dealer finance — buy‑now deals from suppliers (sometimes competitive for newer used stock).
• Grants or subsidised finance for specific sustainability upgrades (check government and industry schemes).

How UK Business Loans helps you secure finance for used machinery

We don’t lend. We match your business to lenders and brokers who specialise in agricultural equipment finance so you get faster, more relevant quotes:

1. Complete a short online enquiry — it takes around 2 minutes.
2. We match you to lenders or brokers that typically consider used agricultural equipment.
3. Those partners contact you with quotes and next steps — you choose whether to proceed.

Our service is free and there’s no obligation to accept any quote. We commonly help businesses seeking finance from £10,000 upwards. Start your Free Eligibility Check now and we’ll match you to the most suitable partners.

Short case study examples

Example 1 — Dairy farm: Replaced an 8‑year‑old milking pump and ancillary kit using a specialist asset finance broker. Outcome: 60% LTV, five‑year hire purchase, approvals in 5 working days following valuation.

Example 2 — Arable contractor: Bought a used 9‑year‑old combine through a lender that accepts older, low‑hour machines with independent valuation. Outcome: chattel mortgage with 36‑month term and lower monthly cost than unsecured alternatives.

Frequently asked questions

Do lenders finance tractors older than 10 years?

Sometimes. Specialist lenders may consider them, especially for well‑maintained, low‑hour machines from reputable manufacturers. An independent valuation helps.

Will submitting an enquiry affect my credit score?

No — submitting an enquiry via UK Business Loans does not affect your credit score. Lenders or brokers may perform formal credit checks later if you proceed.

What paperwork do I need?

Asset details (make/model/serial/year/hours), photos, service records, purchase invoice (if available), business accounts and ID for directors.

How long until I get a quote?

Often within hours to a few working days depending on asset complexity and whether a valuation is needed.

Do you work with agriculture specialist lenders?

Yes — we match farmers and agri‑businesses to lenders and brokers experienced in farm equipment finance. For more on our agriculture sector coverage see our agriculture business loans page: agriculture business loans.

Get Started — Free Eligibility Check

Next steps — get a fast, no-obligation quote

1. Click the Free Eligibility Check: Start your enquiry.
2. Tell us brief details about your business and the equipment you want to finance.
3. We match you to lenders or brokers who will contact you with quotes and next steps.

It’s free, takes around two minutes and does not create a lending agreement.

Image suggestions & alt text

• Hero image: farmer next to used tractor — alt: “Farmer next to used tractor — asset-backed equipment finance for agriculture”.
• Valuation image: technician inspecting a combine harvester — alt: “Technician inspecting used combine harvester for valuation”.
• Process infographic: three-step matching process — alt: “How UK Business Loans matches farms with specialist lenders — 3 step process”.

1. Can I get asset-backed equipment finance for used agricultural machinery? — Yes, many specialist lenders and brokers will provide asset-backed equipment finance for used agricultural machinery subject to the machine’s make, age, condition, valuation and your business credit profile.

2. What types of asset finance are suitable for used farm equipment? — Common solutions for used kit include hire purchase, chattel mortgage, finance leases and asset refinance depending on whether you want to own the asset or lease its use.

3. Up to what age will lenders typically finance tractors and other used machinery? — Many lenders consider equipment up to around 7–10 years old, with some specialist providers accepting older or low‑hour machines if valuations and resale demand are strong.

4. How much can I borrow against used agricultural machinery (typical LTV)? — Loan‑to‑value for used machinery usually ranges from roughly 50%–80% depending on age, condition and marketability of the asset.

5. What information and paperwork do lenders need to assess used equipment finance? — Lenders generally require asset details (make/model/year/serial/hours), clear photos, service history, purchase invoice or valuation, business accounts and ID for directors.

6. Will submitting a Free Eligibility Check affect my credit score? — No — completing UK Business Loans’ Free Eligibility Check is a lead enquiry and does not affect your credit score, though lenders may run formal checks later if you proceed.

7. How long does it usually take to get a quote for financing used farm machinery? — Quotes often arrive within hours to a few working days depending on asset complexity and whether an independent valuation is needed.

8. What costs and fees should I expect with asset-backed finance for used kit? — Expect interest or lease charges plus possible documentation, valuation fees, insurance requirements and occasionally a deposit depending on lender terms.

9. Can UK Business Loans guarantee I will be approved for finance? — No — UK Business Loans matches you with suitable lenders and brokers but approval and terms are always subject to individual lender checks, valuations and criteria.

10. What alternatives exist if asset-backed finance for used machinery isn’t suitable? — Alternatives include unsecured business loans, working capital lines or overdrafts, invoice finance, dealer finance for used stock, and grants or subsidised schemes for eligible projects.