Can you finance used equipment?
Yes: used equipment is financed every day, through the same structure as new. The lender pays for the machine, the machine serves as collateral, and you repay over a fixed term, typically 24-84 months. Quordx Capital's lender network finances both new and used equipment from $5K to $5M+, including dealer purchases, auction buys, and private-party sales. Used equipment often makes more financial sense than new, you skip the steepest depreciation, and waiting to save up cash usually costs more in lost jobs than financing costs in interest.
Last updated · Reviewed by Cody Dreis
50+ Lenders|Funding in as little as 24 hours
How used equipment financing differs from new
Valuation drives everything: With used assets, the lender's question is resale value: age, hours or mileage, condition, maintenance records, and market demand for that model. A well-maintained, common machine finances easily; an obscure, high-hour unit gets shorter terms or a larger down payment.
Terms track remaining useful life: A new machine might support an 84-month term; a ten-year-old one will be capped shorter so the loan never outlives the asset. Expect 24-84 months across the spectrum.
Pricing runs slightly higher than new: Within the common 7%-20% range for equipment financing, used assets generally land a bit above the equivalent new-equipment rate: collateral risk is priced in. Often the lower purchase price still makes used the cheaper total package.
Private-party and auction deals need extra steps: Lenders can fund individual sellers and auction houses, but expect title/lien searches, possibly an inspection or appraisal, and a clean bill of sale. Dealer purchases move fastest.
One practical tip: get the full spec, year, make, model, hours, serial number, price, before applying. Complete equipment details are the difference between a 24-hour decision and a week of back-and-forth.
Ways to fund a used equipment purchase
Equipment financing: the primary route: $5K-$5M+, used units included, fixed payments, the equipment as collateral. Best for almost every used machine, vehicle, or system.
Business term loans: $10K-$500K+ over 1-5 years. Best when the purchase is part of a bigger project, or the asset is hard for equipment lenders to value.
Business lines of credit: $10K-$250K+, interest only on what you draw. Best for cheaper used items where financing paperwork isn't worth it, plus repairs and transport.
How Quordx Capital Works
Submit one application, roughly 5 minutes, with your bank statements, ID, and the equipment details. Quordx Capital's matching process weighs the asset and your business profile against 50+ lenders, several of which specialize in used and private-party equipment, and delivers your 3-7 strongest matches. Lender decisions usually land within 24-48 hours; funding follows in 3-7 business days.
What to Expect
Age and hours don't disqualify a deal: they shape its terms, and you'll see exactly how before committing. If an asset is priced above what lenders will value it at, Quordx Capital tells you straight rather than letting a doomed deal drag on. There are no fees to you at any stage, and checking your options costs nothing but the 5 minutes.
Apply for Funding
No obligation · Initial inquiry doesn't impact credit · Takes about 10 minutes
Written by
Cody Dreis
Founder, Quordx Capital
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Quordx Capital is a business funding broker, not a lender. We facilitate introductions between U.S. small and medium-sized businesses and lenders or capital providers in our network. All credit decisions, funding amounts, rates, fees, repayment terms, and timelines are determined solely by individual lenders based on their own underwriting criteria.
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