The economics are decided by utilisation, not by purchase price
Used equipment typically costs 30–60% of new for the same nominal capacity, but arrives with lower availability, higher energy consumption per unit, shorter remaining life and weaker financing eligibility. On a single-shift operation with modest volumes, that trade is often excellent. On a three-shift plant where one hour of downtime costs more than a month of depreciation, it rarely is.
| Factor | New | Used / refurbished |
|---|---|---|
| Purchase price | 100% | 30–60% |
| Lead time | 16–40 weeks | 2–10 weeks |
| Expected availability | 95–98% | 85–93% |
| Energy per unit output | Baseline | +10–30% |
| Warranty | 12–24 months | 0–6 months, often parts only |
| Financing tenor | 5–12 years (ECA/bank) | 2–5 years, often leasing only |
| Remaining useful life | 15–25 years | 5–12 years |
| Resale value in 5 years | 45–60% | 20–35% |
When used equipment is the right decision
- Speed to market matters more than lifecycle efficiency — a contract must be served this quarter
- The process is proven and stable, with no product-mix change expected
- Capacity is being added in parallel to an existing new line as surge capability
- The market is being tested before committing to a full-scale investment
- The specific machine type is mechanically simple with widely available spares
- Local engineering capability exists to maintain equipment without OEM support
Watch the financing consequence
Export credit agencies and most development banks will not fund used equipment. Choosing refurbished frequently means switching from 8-year concessional debt to a 3-year lease — which can raise the annual cash cost even though the purchase price is lower.
Pre-purchase inspection protocol
Never buy used equipment without these
- Machine seen running under load, on product, not just powered on
- Operating hours or cycle count verified from the control system, not the seller
- Control system supportability confirmed — obsolete PLCs are a hidden replacement cost
- Wear parts inspected: bearings, gearboxes, seals, belts, knives, screens
- Documented maintenance history and last major overhaul date
- Compliance status assessed against your market's current safety standards
- Dismantling, packing and re-installation scope priced before committing
- Spare parts availability confirmed with the original manufacturer
Questions & answers
Frequently asked questions
How much cheaper is used industrial machinery?
Typically 40–70% below new on purchase price, but only 15–35% cheaper on a five-year total cost of ownership once energy, downtime, spares and shorter life are included.
Can used machinery be financed?
Usually only through leasing companies or asset-based lenders, at shorter tenors and higher rates. Export credit agencies and development banks generally require new equipment.
Does used equipment meet CE or UL requirements?
Not automatically. Machines placed on the EU market or substantially modified may require re-assessment. Budget for a compliance review before purchase, not after installation.
Can you source both new and refurbished options in the same RFQ?
Yes, and we recommend it. Running both in parallel makes the true cost difference visible instead of theoretical.
Industrial financing
Financing routes for buying & procurement
Financing is scoped alongside the RFQ, not after supplier selection — the funding route changes the optimal supplier, currency, incoterms and delivery schedule. Global B2B Group never lends, never takes a success fee from buyers and is not tied to any institution. Below are 7 routes buyers commonly compare; amounts, tenors and eligibility are set by each institution.
Export Credit Agencies
State-backed cover (Euler Hermes, SACE, EKF, UKEF, Atradius, K-Sure) on equipment exported from the supplier's country, usually combined with a commercial bank loan.
Best for: Imported production lines and turnkey plants from EU, UK, Korea or Japan
- Eligible country content
- Equity contribution
- Bankable feasibility study
Development Banks & DFIs
IFC, EBRD, AfDB, ADB, IDB, FMO, Proparco and bilateral development windows funding industrial capex with concessional pricing and long grace periods.
Best for: Food security, cold chain, energy efficiency and job-creating projects in emerging markets
- ESG / E&S compliance
- Audited financials
- Development impact case
Commercial Lending
Bank term debt and capex facilities secured against project cash flow, equipment and corporate balance sheet, in local or hard currency.
Best for: Established operators expanding proven capacity
- Debt-service capacity
- Security package
- Sponsor equity
Equipment Leasing
Operating and finance leases that keep machinery off the balance sheet, preserve working capital and align payments with production ramp-up.
Best for: Single machines, packaging lines, handling fleets and phased upgrades
- Asset resale value
- Insurance
- Upfront deposit
Vendor Financing
Supplier-supported deferred payment and instalment structures negotiated inside the RFQ, before supplier selection narrows your leverage.
Best for: Buyers who want a single contractual counterparty for supply and payment terms
- Supplier credit appetite
- Bank guarantee or LC
- Milestone schedule
Project Finance
Limited-recourse SPV structures where the facility's own cash flow repays the debt, with independent technical and market due diligence.
Best for: Greenfield plants, integrated processing complexes and utility-scale infrastructure
- Offtake agreements
- EPC contract
- Independent engineer report
Government Programmes
Industrial localisation incentives, capex grants, interest subsidies, free-zone benefits and agri-processing schemes that reduce effective project cost.
Best for: Projects in priority sectors, special economic zones or import-substitution plans
- Local registration
- Job creation targets
- Application windows
How financing is structured
1. Scope & budget
Technical scope and realistic capex band are fixed first — lenders price the project, not the wish list.
2. Route selection
We map which of these routes may fit your country, sector, project size and sponsor profile.
3. Bankable package
Feasibility, offtake, DSCR model and equipment quotations assembled into a lender-ready file.
4. Introductions
Independent introductions to ECAs, DFIs, banks, lessors and equity partners — no exclusivity, no success fee to buyers.
Get a funding route assessment
Human-led, with no paid placement and 100% free for buyers. We return the routes that realistically fit your project, with the requirements and documentation checklists each institution publishes.
Next steps
Put this into practice
Request machinery quotes
No paid placement · Human-led · No cost to buyers
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Hand-picked next steps for this topic — special purpose machinery and industrial project financing.
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