Dealer
The quickest used option. The dealer issues a tax invoice and handles ownership checks, so lenders can move almost as fast as with new gear.
Used equipment finance
Used Equipment Finance for Dealer, Private and Auction Buys
Found the right second-hand machine at the right price? Here's how to finance it before someone else snaps it up.
Second-hand, sorted
Why buy used, and why finance it?
Plenty of smart businesses buy second-hand. A well-maintained used forklift, excavator or oven can do the same job as a new one at a fraction of the price, and it's often available now rather than in twelve weeks. For a business that needs gear quickly, a good used machine sitting in a yard today beats a new one on a boat.
The challenge is that used deals move fast. The seller wants an answer, the auction closes on Thursday, or another buyer is already circling. Financing a used purchase means you can commit without draining cash reserves, but only if the finance can keep up with the deal. A slow approval is the most common way good second-hand buys slip away.
Loanster helps businesses finance second-hand equipment from dealers, private sellers and auctions. Tell us what you've found and how fast the seller wants paying. A real person looks at your situation and works towards apply today, cashed up tomorrow, so the gear is yours before anyone else gets a look in.
Used equipment finance is a loan or lease for second-hand business equipment, bought from a dealer, private seller or auction, usually secured against the asset. Lenders check the age, condition and ownership of the equipment and that nothing is owing on it. With the invoice or sale agreement, ID, bank statements and ownership proof ready, next-business-day settlement is possible for straightforward applications.
Where you buy matters
Dealer, private sale or auction
Each source has its own paperwork and timing.
Private sale
Often the best price, but the lender needs proof of ownership and confirmation of no existing finance, which can add a day or two.
Auction
Tight payment deadlines, so pre-approval before bidding is essential. Lenders then only need the final invoice to settle.
Can I get finance on a used machine from a private seller?
Yes, it's done every day. The lender's main concerns are that the seller genuinely owns the equipment and that no finance or security interest is attached to it. If there is existing finance, the new lender can usually pay it out at settlement and send the balance to the seller.
To keep it quick, ask the seller for their original purchase invoice, registration papers if it's a vehicle, and a payout letter from their lender if they still owe money. A signed sale agreement with the price, serial number or VIN and both parties' details completes the file.
- Signed private sale agreement with serial number or VIN
- Seller's proof of ownership
- Payout letter if there's existing finance
- Photos and, for larger items, an inspection report
- Your ID and recent business bank statements
How old can used equipment be for finance?
There's no single rule. Lenders typically look at the age of the equipment at the end of the finance term, not just today, and older assets usually attract shorter terms. Equipment with a strong resale market, such as trucks and earthmoving gear, tends to be financed at greater ages than specialised machinery.
If the equipment is too old for an equipment lender, a property-secured business loan may help. Those range from $20,000 to $5,000,000, secured by first mortgage, second mortgage or caveat, and rely on the property rather than the asset's age. See secured business loans.
How do I finance an auction purchase in time?
Get pre-approval before the auction. Tell the lender the type of equipment, your maximum bid and the auction house, and they can assess your business ahead of time. Once you win, the final invoice is all that's left to settle.
Remember to factor in buyer's premium, GST and transport. If the auction house's payment deadline is tighter than settlement, short-term fast cash flow loans can sometimes cover the gap.
Apply today… cashed up tomorrow!
Need the gear on site this week?
Start the 60-second enquiry now. When your documents are ready and the deal is straightforward, being cashed up as soon as tomorrow is possible for eligible applicants.
Is used equipment finance harder to get with bad credit?
It can be a little harder, because the lender has both an older asset and a credit history to weigh up. But it's far from impossible. A trading business with good bank statements and a sensible deposit can still be approved, and ATO debt is considered case by case.
Our bad credit equipment finance page explains what lenders look at and how to put your best case forward.
Used or new: which gets approved faster?
New equipment from a dealer is usually the fastest because there are no ownership questions and the value is clear. Used equipment from a dealer runs a close second. Private and auction purchases take a little longer, mainly because of the extra checks.
That said, a well-prepared used deal can beat a poorly prepared new one. The single biggest factor is having every document ready at the start. Our equipment finance checklist lists everything to gather.
Can I refinance used equipment I already own?
Yes. If you bought equipment for cash, a sale and leaseback or refinance can release that money back into the business. It's a common way to fund a deposit on new gear, cover a tax bill or ease a cash crunch.
Our equipment refinance page explains how it works.
Lock in that second-hand deal
The enquiry takes about 60 seconds, with no credit check when you first enquire and no blasting your details out to a pile of lenders. A real person reviews your deal and comes back with a clear next step.
Fill in the form accurately so we can match you first time. Subject to lender approval, the seller could be paid as soon as tomorrow. Start your 60-second enquiry before someone else buys it.
Trust and process
Clear, secure finance enquiries
Loanster keeps the enquiry process straightforward: no credit check to enquire, a real person looks at your situation, and your details are not sprayed out to a pile of lenders.
Secure online enquiry
Personal details are submitted through a secure form and are not sent through URL query strings.
Australian business context
Enquiries can include ABN, BAS, ATO, bank statement and asset details where relevant.
Lender criteria apply
Approval, pricing, loan amounts and funding times depend on lender assessment.
Clear next steps
Loanster helps identify what information may be needed before a lender can make a decision.
Common questions
Used Equipment Finance for Dealer, Private and Auction Buys FAQs
Do I need an inspection for used equipment finance?
For larger or older items, lenders may ask for an independent inspection or valuation of the equipment. Smaller dealer purchases often don't need one.
Can I finance used equipment from overseas?
It's possible but more complex, since the lender needs comfort about the supplier, shipping and compliance. Allow extra time.
Can I get no-deposit finance on used equipment?
Sometimes, particularly for established businesses buying from dealers. Older equipment and private sales are more likely to need a deposit.
What if the seller still owes money on the equipment?
The new lender can usually pay out the seller's existing finance at settlement and pay the remaining balance to the seller.
Can I finance used equipment bought from a related party?
It's possible, but lenders look closely at related-party sales to make sure the price is fair. Expect extra questions.
Is used equipment finance more expensive?
Pricing depends on the asset, its age, your business and the lender. Every application is priced on its own circumstances.
Related finance options
Explore connected Loanster pages
Equipment Finance for Australian Businesses
Finance eligible equipment for your business while preserving cash flow for wages, suppliers and day-to-day operations.
Bad Credit Equipment Finance
A default from years ago should not stop a busy business getting the truck, machine or tools it needs to keep working.
Equipment Refinance: Unlock Cash From Gear You Already Own
Your yard is full of machines and vehicles that are paid off. Turn some of that value into working capital, fast, without selling a thing.
Equipment Finance Checklist: Everything You Need to Get Approved
A practical checklist to work through before you finance a truck, machine, oven or forklift, so approval and settlement move quickly.
All equipment loan options
See every equipment loan page on Loanster in one place.
Start your enquiry
See what you may qualify for
Tell Loanster what kind of finance you are looking for and the team will guide you through the next step. Please fill in the form accurately so we can match you first time. Finance is subject to lender approval, eligibility criteria, terms and conditions.
Prefer to talk? Call 03 9999 7370.
Last reviewed: 24 October 2026
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