FAQ Categories

Can I finance used equipment?

Yes, you can finance used equipment. Many lenders offer financing options for used trucks, trailers, and heavy machinery, recognizing that quality used equipment can be a cost-effective choice for many trucking businesses. However, there are a few things to keep in mind:

  1. Condition and Age of Equipment: Lenders may have specific criteria regarding the age and condition of the equipment they’re willing to finance. Generally, the equipment should be in good working order and not too old to ensure it retains value over the loan term.
  2. Appraisal: Lenders might require an appraisal to determine the equipment’s current market value. This helps them assess the loan amount relative to the value of the equipment.
  3. Loan Terms: The terms for used equipment financing might differ from new equipment financing. Interest rates may be higher, and loan terms might be shorter, reflecting the reduced lifespan and resale value of used equipment.
  4. Down Payment: A higher down payment might be required to offset the depreciation and additional risk associated with financing used equipment.

Condition and Age of Equipment:

Lenders may have specific criteria regarding the age and condition of the equipment they’re willing to finance. Generally, the equipment should be in good working order and not too old to ensure it retains value over the loan term.

Appraisal:

Lenders might require an appraisal to determine the equipment’s current market value. This helps them assess the loan amount relative to the value of the equipment. It’s important to know that not all used equipment will be eligible for financing. Generally, the older the equipment (or more specifically, the amount of wear and tear it has), the more difficult it will be to finance.

Loan Terms:

The terms for used equipment financing might differ from new equipment financing. Interest rates may be higher, and loan terms might be shorter, reflecting the reduced lifespan and resale value of used equipment.

Down Payment:

A higher down payment might be required to offset the depreciation and additional risk associated with financing used equipment.

Learn more about how to apply for an SBA loan.

BLF is here to assist you

Our goal is to provide you with expert help and guidance for you needs. Whether you need funding or business services for your trucking company, you are in reliable hands.

Scroll to Top