Machinery Loan: 7 Tips You Should Know Buying Second Hand Machinery

Machinery Loan: 7 Tips You Should Know Buying Second Hand Machinery

By admin | March 19, 2021

Most people find it easy to purchase new equipment or machinery as and when required. But what if you have limited financial resources or what if you aren’t looking to keep or use it for a long period? Then there’s always the option of buying second-hand equipment or machinery.

You’ll see many small businesses and start-ups opting in for second-hand machinery. In fact, there’s a huge market for selling and buying used machinery in India.

Entrepreneurs can even register as (Micro, Small, and Medium Enterprises) and apply for equipment financing to MSMEs grow their Business Opportunities. There’s a whole market just for used machinery in cities like Delhi, Pune, Ahmadabad, Rajkot and Chennai.

But buying second-hand machinery or used machinery can be tricky and difficult. Here are some tips to help you narrow down your choice and ensure value for your money.
Know your specifications or requirements

While buying second-hand machinery always bear in mind your requirements like size, model, and attachments as there might be more than one machine that may catch your fancy. So you need to conduct a thorough analysis and market research before choosing.

Inspect Equipment

Make sure that you check or inspect the equipment before buying it. See if it works and operates properly. Ask the relevant questions like- What kind of servicing does it require if it breaks down? How often has it been serviced since it was purchased? How often has it been modified or fixed? Take your time with this process and assess every angle to ensure that it’s the right machine for your use.

Signs of wear and tear

All equipment and machinery are prone to wearing off even after regular repairs and maintenance but the signs you are looking for are- hairline cracks, rust, or damage that may lead to a major equipment breakdown in the future.

Seller/Machine Dealer

While in the market hunting for the best secondhand machinery don’t overlook the reputation of the dealer. Consider all second-hand machinery dealers in your area and their market standing. Go online and check them out or speak to friends and colleagues for reliable information.

There are sites specially dedicated to buying and selling machinery online. Moreover, you can also check out auctions and trade fairs just designed to buy/sell second-hand machinery. You can not only it online but can even sell machinery online.
Check the machine fluid

Analyzing the fluids will give an insight into the present condition of the equipment as well as how well it was maintained over time. Dirty fluids indicate that the earlier owner hasn’t kept up with the required maintenance plan.

Test run before you purchase

A lot can be measured when the machinery in operation. Before you buy, make sure you are able to see the machinery in operation. You can either check the machine in person or request a video of the machine in action. Whichever this may be, inspect the piece of machinery before signing that cheque.


Second-hand machines can save you from high-interest rates of SME loans. You can spend your saved money on buying other equipment. If the asking price is high, then let the seller/dealer know your budget. This helps the dealer decide whether there is any ‘wiggle room’ on the price.

Since there’s a growing demand for a second-hand machine for many business ventures, second-hand machinery dealers and the businesses are here to stay offering attractive prices and some good deals.

Electronica Finance
Electronica Finance

We at Electronica Finance are on a mission to simplify the Finance for MSME businesses & to be a Globally Trusted Financial Partner for MSMEs, with a DNA of 'Customer First Approach'.

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