Can I finance used equipment or second-hand machinery or vehicles?

Short answer

Yes — many UK lenders and brokers will finance used equipment, second-hand machinery and pre-owned commercial vehicles. Terms, eligibility and pricing depend on the age, condition, market demand and expected residual value of the asset, plus your business’s credit profile and sector.

Who will finance used assets and what they look for

Specialist asset finance companies, some banks, and independent brokers regularly provide funding for second-hand plant, machinery and commercial vehicles. Lenders vary: some focus on newer assets with strong resale values, while others specialise in older or niche equipment for particular industries.

Key things lenders assess include the asset’s age, remaining useful life, maintenance history and marketability at resale. They also check your business turnover, trading history, sector risk and existing security or charges against the company.

For high-value or specialist equipment (for example CNC machines or agricultural harvesters) lenders often request valuations from independent valuers or brokers. For vehicles, mileage, service history and MOT records will typically be required to support a funding decision.

Common finance types suitable for used equipment

Asset finance (hire purchase and finance leases)

Hire purchase (HP) and finance leases are the most common routes to buy second-hand assets while spreading the cost. With HP you usually become the owner after the final payment, whereas with a finance lease the lender retains ownership and you have the asset for the lease term.

Many asset finance providers will accept used equipment as security, although deposit levels, term length and rates may differ from new equipment finance. You can learn more about this route via our asset finance overview here: asset finance.

Operating leases, hire and short-term funding

Operating leases and rental agreements suit businesses that need flexibility and prefer not to own older equipment. These are often available for second-hand fleets and specialised plant through rental companies and broker networks.

For shorter cashflow gaps related to a purchase, invoice finance or a small business loan may bridge the cost before a formal asset finance arrangement is put in place.

Eligibility, valuation and documentation required

To speed approval for used equipment finance, prepare clear documentation: invoices or quotes, proof of ownership if you already own the asset, service history and evidence of income or business accounts. Lenders usually want at least 12–24 months of trading history for small businesses, although exceptions exist for established directors and specific sectors.

Valuation is critical. Lenders prefer independent valuations or up-to-date market data that demonstrate realistic resale value at the end of the term. This is especially important for specialised or niche machinery with limited secondary markets.

Security arrangements vary. Many lenders take a fixed or floating charge over business assets and retain ownership under lease or hire purchase until obligations are met. Some regional or sector-specific funders will accept parent company guarantees or personal guarantees where appropriate.

Pros, cons and typical costs when financing second-hand assets

Financing used equipment can reduce upfront capital outlay and help conserve working capital for growth or operating needs. It often delivers a lower headline cost than unsecured borrowing because the asset acts as security for the finance.

However, rates can be higher and deposit requirements larger than for new equipment, reflecting higher residual-value and maintenance risks. Lenders may also limit maximum term lengths for older assets because of accelerated depreciation.

Other practical risks include unexpected repair costs, obsolescence and a smaller secondary market which can affect the asset’s resale value. Factor in warranty coverage, service contracts and anticipated downtime when assessing value for money.

How to get started, checklist and next steps

Start by gathering key information: the asset description, age, serial numbers, recent valuation or comparable sale prices, service history and two or three years of business accounts. Have details ready about how the asset will be used and where it will be kept.

Compare quotes from multiple providers — including specialist asset finance firms, bank asset lenders and brokers — to ensure you see a range of terms and costs. A broker or matching platform can save time by identifying the lenders most likely to approve finance for your specific asset and sector.

If you’d like a quick eligibility check, submit a Quick Quote with Best Business Loans and we’ll match your enquiry to appropriate lenders or brokers in our network. We don’t provide loans directly, but our AI-driven matching helps you find providers who regularly fund used machinery, plant and vehicles.

Practical tips and FAQs

What age limits apply? Age limits vary by asset type and lender; some will finance vehicles up to 7–10 years old, while others limit plant to 5–7 years depending on expected life. Specialist lenders sometimes accept older, high-value assets if resale is strong.

Should I get an independent valuation? Yes — an independent valuation strengthens your application, helps set realistic expectations and can reduce delays. Lenders may accept up-to-date market comparables from recognised valuers or auction results.

Is warranty or service cover necessary? While not always mandatory, having valid service contracts or transferable warranties improves lender confidence, lowers perceived risk and can sometimes secure better terms.

Key takeaways

Yes, you can finance used equipment, machinery and vehicles — provided the asset has sufficient value and marketability, and your business meets lender criteria. Options include hire purchase, finance leases, operating leases and rental agreements tailored to second-hand assets.

Prepare strong documentation, obtain a valuation, consider warranty or service cover and compare lenders to find terms that match the asset’s expected lifespan. If you prefer help comparing options, use Best Business Loans’ Quick Quote to be matched with lenders and brokers who specialise in asset finance.

Ready to check your eligibility? Complete our Quick Quote form for a fast, no-obligation introduction to funders who commonly finance used plant and vehicles.

Important compliance note: Best Business Loans is an independent introducer and does not lend directly. We help UK businesses find and compare lenders and brokers. Submitting a Quick Quote is free and does not constitute an offer of credit. Always read provider terms carefully and seek regulated advice if you are unsure whether a product is suitable for your business. Best Business Loans is not authorised by the FCA; however, we aim to present clear, fair and non-misleading information consistent with FCA and ASA guidance.