Can you get equipment finance for older machinery?

Often, yes. Plenty of businesses buy used equipment to save money, and some lenders will finance older machinery. The lender will look closely at the equipment itself, because in most cases it's the security for the loan.

Why the age of the equipment matters

With equipment finance, the machine is usually the lender's security. If the loan isn't repaid, the lender relies on what the equipment is worth. Older equipment can be harder to value and may be worth less by the end of the loan, so lenders set their own limits.

A common approach is an age limit at the end of the loan term. In other words, the equipment can't be older than a certain age when the final repayment is made. That means an older machine may only qualify for a shorter loan term. The limits vary between lenders and between types of equipment.

What lenders look at

• The age and condition of the equipment. Well maintained equipment with service records is easier to finance.
• The type of equipment. Assets that hold their value and are easy to resell can be viewed more favourably.
• Who you're buying from. Dealer purchases come with a tax invoice. Private sales can be financed by some lenders, but usually need extra checks.
• Your business. Your trading history, how long you've held your ABN, your financials and your experience in the industry.
• A valuation or inspection. For older or higher value equipment, a lender may ask for an independent valuation or inspection.

Buying older equipment privately

If you're buying from another business or a private seller, the lender will want to confirm the seller owns the equipment and that there's no finance still owing on it. This is usually done with a search of the Personal Property Securities Register (PPSR). You'll also need the seller's details and an invoice or bill of sale.

How older equipment can affect your loan

• A shorter term. If the lender caps the equipment's age at the end of the loan, the term may need to be shorter, which means higher regular repayments.
• Balloon options. Some lenders limit or don't offer a balloon payment on older equipment.
• A deposit can help. Putting money down can strengthen an application for older equipment.

You can see the kinds of equipment we finance on our equipment finance page.

How we can help

We regularly help tradies and small businesses finance used equipment, and we know which lenders consider older assets. Start an equipment finance quote and tell us what you're looking at. Enquiring with us has no impact on your credit score.