The practical answer
Both matter, alongside service history, condition and market value; neither number gives the complete picture.
A lightly used older machine can differ from one that has worked continuously in harsh conditions. Provide accurate hours, maintenance records, photographs and details of major component replacements.
The lender may request an inspection or valuation. Propose a term that fits the machine’s expected remaining productive life, and allow cash for repairs rather than assuming financing includes a mechanical warranty.
Commercial finance is subject to status, lender approval and the specific asset and transaction. The right structure depends on the complete circumstances of the business.
What should I do next?
Have the asset details, supplier information and an outline of what the business needs ready. DCF can then discuss the requirement and identify which lenders may be suitable.
Read: Excavator finance →Explore the relevant guides
VAT on asset finance — For VAT timing and the cash needed alongside funding.
Plant & machinery finance — For construction, agricultural and other productive equipment.