Lender Appetite for Used Assets
The specialist asset finance market is generally comfortable with used industrial machinery, though appetite varies significantly by lender. Tier 1 lenders (Aldermore, Shawbrook, Close Brothers) typically accept assets up to 10 years old. Tier 2 and private funders can accommodate older assets or those from less common manufacturers, at slightly higher rates.
Age Restrictions and Valuation Requirements
Most lenders assess used machinery on a combination of: age (years since manufacture), remaining useful life, asset type and manufacturer reputation, and maintenance history. A 5-year-old Mazak machining centre is viewed very differently from a 5-year-old piece of bespoke processing equipment. Valuations are typically required for assets over £50,000, commissioned from independent engineers rather than the seller.
What DBF Does for Used Asset Finance
DBF maintains relationships with lenders who have strong appetites for used industrial machinery. We commission valuations, prepare the credit submission highlighting asset quality and depreciation curve, and often negotiate advance rates higher than the borrower could achieve directly. We also help with insurance requirements.
£35k Used CNC Lathe (5 Years Old) Financed
Asset: Doosan Lynx 220 CNC lathe, 2019 manufacture, £35,000 (private sale) Challenge: 5-year-old machine, private sale (no VAT invoice from dealer) Solution: Desktop valuation confirmed £33,000 value; HP advance of £28,000 (80% LTV) Rate: 8.5% APR over 48 months Monthly payment: £690/month Business deposit: £7,000 (20%) DBF lender: Time Finance