Quick answer: Used equipment financing lets you buy pre-owned trucks, machinery or tools and pay over time, with the equipment usually serving as collateral. It costs less up front than new equipment, but lenders may offer shorter terms on older equipment and want an inspection or appraisal. A business term loan is an alternative if you also need money for repairs, delivery or installation.
New vs. used equipment
| New | Used | |
|---|---|---|
| Price | Highest | Often much lower |
| Depreciation | Fastest in the first years | Slower |
| Warranty | Manufacturer warranty | Limited or none |
| Financing terms | Longer terms available | Often shorter, based on age and condition |
| Availability | May have waiting lists | Often available right away |
What lenders look at for used equipment
- Age, hours or mileage, and condition
- Remaining useful life
- Whether it’s bought from a dealer or a private seller
- Your business revenue, time in business and credit
How to qualify
- Get a written quote or bill of sale with the make, model, year, serial number and price.
- Have recent business bank statements ready.
- For private sales, be ready for an inspection or appraisal.
- Plan for extra costs — transport, repairs, installation and insurance.
Equipment financing vs. a term loan
Equipment financing covers the equipment itself. If you also need money for repairs, delivery, training or working capital, a business term loan can cover everything in one loan. Brookestone Funding term loans range from $10,000 to $2,000,000 with terms up to 36 months and rates starting at 8% for qualified businesses.
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Frequently Asked Questions
Can I finance used equipment?
Yes. Many lenders finance used equipment, though terms may be shorter than for new equipment and older items may need an inspection.
Is it easier to finance used equipment from a dealer?
Usually. Dealer sales come with clear paperwork and pricing. Private sales may require an appraisal and proof of ownership.
How old can equipment be to finance?
It varies by lender and equipment type. Lenders look at remaining useful life, condition and value.
Can I use a business loan instead of equipment financing?
Yes. A business term loan can cover the equipment plus repairs, delivery and installation in one loan.
Need financing? Brookestone Funding offers business term loans, lines of credit and SBA loans from $10,000 to $2,000,000, with same-day funding available for qualified businesses. We’re rated 4.5 on Trustpilot by more than 240 customers. Apply in minutes, see our business loan options, or call 212-258-0602.
