Used Production Line Equipment Financing

Throughput does not care whether the machine is new or ten years old. A rebuilt filler running at spec contributes the same units per hour as the day it left the factory, and at a fraction of the acquisition cost. Used production line equipment is one of the most effective ways to add capacity, reduce changeover risk on a secondary SKU, or stand up a redundant station without committing to full OEM pricing.

The financing market for used equipment has historically been tighter than for new, because secondary collateral is harder to value quickly. We have built a program specifically for production line assets, with direct relationships with machinery appraisers and secondary-market dealers who can confirm value on the machines manufacturers actually buy used. Our minimum transaction is $50,000, there is no hard ceiling, and we regularly finance pre-owned assets up to and above $1 million when the equipment and the business both support it.

We finance used equipment from single-station additions like a standalone Checkweigher & Metal Detector Financing to complete pre-owned packaging lines acquired from another facility. The age of the asset matters less than its condition, maintenance history, and remaining useful life relative to the term you need.

Used vs. New: What Changes in Financing

Financing a used machine involves two adjustments compared to financing the same asset new. First, the advance rate is calculated against appraised current market value rather than invoice price. A machine that sold for $500,000 new and is now worth $280,000 on the secondary market will be advanced against $280,000. Second, terms are often shorter, because the machine's remaining useful life defines the outer limit of the loan period. A palletizer with five good years ahead of it is not a candidate for a seven-year term.

Neither adjustment disqualifies the transaction. Used equipment financing is still usually the better economic choice for the manufacturer because the purchase price itself is lower. Paying a slightly higher effective rate on a $280,000 used machine is almost always cheaper than financing a $500,000 new replacement over a longer term. The total debt service is what matters, not the rate in isolation.

Our Equipment Leasing is sometimes a better fit for older used assets, because a shorter lease term can align well with the machine's realistic service horizon. We can model both loan and lease structures for any transaction.

Equipment We Finance Used

The production equipment secondary market is active and well-developed. Machines from OEMs like Krones, Sidel, FANUC, Multivac, GEA, and ProMach retain strong resale demand, which translates to better advance rates and more flexible terms. Equipment from less-established OEMs is still financeable, but values are harder to confirm and advance rates may be more conservative.

• Pre-owned Packaging Line Financing, including formers, fillers, cappers, labelers, and end-of-line automation
• Used industrial robots from FANUC, KUKA, ABB, and Yaskawa with documented hours and condition reports
• Refurbished Conveyor System Financing, including belt, roller, and overhead configurations
• Pre-owned injection molding machines and extrusion systems
• Used material handling equipment: forklifts, reach trucks, AGVs, and AS/RS systems
• Secondary-market CNC machining centers with maintenance records

We work with equipment purchased from dealer inventory, auction, or directly from another manufacturer. Private-party and auction purchases are eligible; we can often pre-approve the financing before you complete the acquisition.

Credit and Documentation Requirements

Used equipment transactions follow the same general documentation structure as new equipment financing. For amounts up to approximately $400,000, we can process with a one-page application and three months of bank statements, no tax returns required. Larger transactions typically add two years of business returns to the file.

Credit standards for used equipment are comparable to new equipment in our program. We work with established businesses (two years or more of operating history) and can consider B/C credit situations where the asset and business cash flow support the transaction. The asset's value and condition provide a secondary source of repayment that allows us to look past credit events that might disqualify a borrower at a conventional bank.

Manufacturers serving sectors like Food & Beverage Manufacturing frequently finance used equipment for secondary lines, seasonal capacity, or facilities where capital is better preserved for raw materials and distribution. We know that logic and underwrite accordingly.

Related Structures to Consider

If you own equipment free and clear, a Cash-Out Refinance for Production Line Equipment can generate working capital to fund a used equipment purchase without taking on a separate acquisition loan. Some manufacturers use this structure to effectively swap equity in their existing line for a new piece of equipment without adding net debt.

For operators adding used equipment to an existing production environment, our Production Line Upgrade Financing covers multi-asset packages where the used purchase is part of a broader capacity addition. Bundling a used filler with new upstream automation into a single facility is a common scenario we structure regularly.

Finance Your Used Equipment Purchase

Share the equipment details and we will give you an advance range and preliminary terms before you commit to the purchase. Used equipment moves fast on the market, so we work on your timeline, not a bank's.