Can I finance second-hand or refurbished equipment for energy efficiency?
Short answer — and what this page covers
Yes. Many UK finance providers will fund second-hand or refurbished equipment that improves energy efficiency, subject to lender criteria and asset condition. This page explains the common finance routes, lender requirements, benefits and risks, and practical steps to increase your chances of approval.
Which finance options commonly cover second-hand or refurbished equipment?
Asset finance (including hire purchase and finance leases) is the most common route for funding used equipment because the lender takes a security interest in the asset. Lenders can also support refurbishment projects and specific sustainability-focused loans where the equipment materially reduces energy use.
Hire purchase lets you spread payments with ownership transferred after the final instalment, while finance leases rent the asset with options at term end. Some brokers and specialist lenders will also consider secured business loans or invoice-backed facilities when equipment is part of a broader funded project.
For energy-efficiency projects, you may qualify for targeted options such as sustainability loans or green finance products from banks and specialist funds. To explore these options, see our guide to Sustainability loans and how they can support eco-upgrades.
What do lenders check when a business applies to finance used or refurbished equipment?
Lenders assess the asset’s age, remaining useful life, condition, and market resale value because these factors affect recoverability if the borrower defaults. They will also consider the supplier reputation, maintenance records, and whether a refurbishment warranty or inspection report is available.
Your business profile matters too: trading history, turnover, profit, sector, and how the equipment will be used all influence eligibility. For certain sectors — for example manufacturing or logistics — lenders with sector expertise are more willing to finance second-hand assets if they are proven, inspected, and supported by a clear maintenance plan.
Documentation that helps approval includes photos, condition reports, service logs, supplier invoices, and quotes showing expected energy savings. Independent valuations and electrical safety or PAT test results can significantly strengthen an application.
Benefits and risks of financing second-hand equipment for energy efficiency
Benefits include lower upfront cost compared with new equipment and faster payback where energy savings are realised quickly. Buying refurbished can be an effective way to upgrade to more efficient technology at reduced capital outlay, improving cash flow and sustainability credentials.
Key risks include higher maintenance needs, shorter useful life, and potential warranty gaps that can increase total cost of ownership. Some lenders apply higher interest rates or shorter terms to offset asset risk, which affects monthly costs and comparison with purchasing new equipment.
When the primary objective is energy efficiency, businesses should quantify savings and consider lifecycle costs — this helps both decision-making and lender assessment. Evidence-based projections that show realistic savings over the finance term improve lender confidence and may secure better terms.
Quick checklist — what to prepare before you apply
1) Clear description of the equipment, age, and refurbishment history with supplier details.
2) Independent condition or valuation report and photographs of the asset in situ where possible.
3) Energy-efficiency case: baseline energy use, expected savings, supplier warranty or service plan, and quotes for installation or commissioning.
Practical steps to improve approval chances and structure finance
Start by compiling a concise business case that quantifies energy savings and projects payback over the finance term. Lenders and brokers prefer evidence: supplier datasheets, measured or modelled energy reductions, and a clear explanation of how the asset integrates with existing plant or processes.
Choose an appropriate finance type: hire purchase and asset finance are typical for specific equipment, while sustainability-linked loans or green asset finance can suit projects with demonstrable carbon or energy reductions. If you want flexibility, operating leases and short-term rental agreements are sometimes available for refurbished items.
Work with a specialist broker or introducer who understands both used equipment markets and energy-efficiency projects. Best Business Loans can match you with lenders and brokers experienced in funding refurbished assets and sustainability upgrades, helping you find suitable options quickly and fairly.
How Best Business Loans helps and next steps
Best Business Loans does not provide loans or credit directly; we act as an independent introducer that matches established UK businesses with lenders and brokers. Our AI-driven matching system considers your sector, the asset type, and your finance goals to connect you with providers likely to lend for second-hand or refurbished equipment.
To get started, complete a Quick Quote so our system can assess eligibility and identify relevant lenders or specialist brokers. The Quick Quote is quick, free, and non-binding and helps reveal whether asset finance, a sustainability loan, or an alternative product is the best fit for your energy-efficiency project.
We aim to be clear, fair and not misleading in line with UK advertising and financial promotion standards. We recommend discussing detailed terms directly with the lender or broker introduced to you, and obtaining specialist tax or legal advice where appropriate.
Key takeaways
Yes — many lenders will finance second-hand or refurbished equipment for energy efficiency when the asset is in good condition and the business can provide supporting evidence. The most common routes are asset finance, hire purchase and specialised sustainability loans.
Prepare a short, evidence-based business case showing expected energy savings, supply and refurbishment records, and an independent valuation where possible. Working with a broker or introducer improves your chance of matching with lenders who understand both used equipment and energy projects.
Start your enquiry today with a Quick Quote to check eligibility and connect with lenders or brokers who specialise in funding energy-efficiency upgrades for UK businesses. Best Business Loans will introduce you to relevant providers — we do not lend directly and are an independent matching service.
Updated: 29 October 2025