What to consider when looking for finance for second hand equipment for your business.
Many businesses choose to purchase second hand or used equipment for their business. Not only does it often prove to be more cost effective, recent shortages and delays in accessing new cars, trucks and plant and machinery has made choosing second-hand items a popular option.
Sourcing an equipment loan for used equipment is much the same as for new equipment however there are some factors that you should take into consideration.
- Due diligence: When buying second-hand equipment, it’s important you do your due diligence. It is advisable to have the equipment you are looking to purchase inspected by a knowledgeable equipment expert or mechanic. You should also take into account the age and condition of the equipment, how long it is likely to last and check for any warranties that might still be in place and transferable to you.
- Age of the equipment: The age of the equipment you can seek finance for varies from lender to lender. We have access to lenders that will finance equipment that is up 20 to 25 years of age at the end of the loan term. This means that if you purchase a piece of equipment that is 20 years old you can take out a loan over 5 years as the equipment will be 25 years old at the end of the loan term.
- Buying privately vs through a dealer: We can finance both dealer and private sales. A couple of things to keep in mind if buying through a private seller is that the lender will likely require an inspection on the asset to ensure the seller and equipment is legitimate. With so much fraud around these days, while an inspection is an extra step in the process it is important to protect both you as the buyer as well as the lender. In some cases, the lender may also request a valuation of the asset to ensure you are paying fair market value.
Types of second-hand equipment we finance
Some of the second-hand equipment we can find you finance for includes:
- Trucks
- Trailers
- Tractors and farm machinery
- Earthmoving equipment
- Construction equipment including forklifts and scissor lifts
- Computers, printers and other office hardware
- Hospitality equipment
Buying used equipment need not be a difficult process. Our brokers can help source the best option for you that suits your business needs. Contact the Asset Finance team for fast finance for your next used or second hand equipment purchase.