When you’re growing a business, especially as a small business owner, equipment is essential but it can also be expensive. That’s why many companies explore financing as an affordable way to acquire the tools they need. One of the most common questions we hear is: “Can you finance used equipment?” The answer is yes. Used equipment financing is a smart option for many businesses, especially when you want to save on upfront costs while still preserving cash and working capital.
In this guide, we’ll cover how used equipment financing works, the benefits, what lenders look for, and how to set yourself up for success.
What Is Used Equipment Financing?
Used equipment financing allows you to purchase pre-owned equipment through a loan or lease with monthly payments over time. Instead of tying up capital, you spread out the expense while still putting the equipment to work in your business right away. This can apply to a wide range of assets, from construction machinery, manufacturing equipment, and trucks to office technology, medical devices, and more.
Why Finance Used Equipment?
Financing used equipment can offer several financial advantages:
- Lower Upfront Cost: Used equipment typically costs significantly less than new.
- Faster ROI: With a lower purchase price, businesses often see a quicker return.
- Cash-Flow Friendly: Financing preserves working capital for payroll, inventory, marketing, and other operational needs.
- Access to Quality Equipment: Many pre-owned machines are well-maintained and have years of productive life left.
What Lenders Look For
While used equipment financing is widely available, lenders will evaluate a few key factors before approval, including:
- Equipment Age and Condition – The asset must still have a useful lifespan.
- Fair Market Value – The lender will confirm the equipment’s current worth.
- Maintenance or Service Records – Proof of proper upkeep can strengthen your application.
- Business Financials – Time in business, credit profile, and cash flow still play a role.
Lease vs. Loan: Which Is Right for You?
Used equipment can be financed through either a loan or an equipment lease:
| Option | Best For | Key Benefit |
| Loan | Long-term ownership | Build equity in the equipment |
| Lease | Lower monthly payments or short-term needs | Flexibility and potential tax advantages |
A trusted financing partner can help you compare both options and choose a structure that aligns with your goals, budget, and equipment lifespan.
Tips for a Smooth Approval Process
To get the best terms when financing used equipment, consider these best practices:
- Choose reputable sellers or dealers
- Obtain photos, equipment specs, and service documentation
- Be prepared with basic business financial information
- Match the financing term to the remaining useful life of the asset
Being prepared helps lenders move faster and often leads to better rates and terms.
Your Next Steps
Yes, you can finance used equipment and for many businesses, it’s one of the smartest ways to grow without overextending cash reserves. With the right partner, flexible structures, and a clear understanding of your equipment needs, you can secure affordable monthly payments and keep your business moving forward.
If you’re considering equipment financing, the experts at Lease Consultants can help you compare options and create a plan that fits your goals. Contact us today to get started.