Heavy Equipment Financing
Loans and leases for excavators, wheel loaders, dozers, cranes and the rest of the yellow iron, new or used, from $50K to $5M.
Loans and leases for excavators, wheel loaders, dozers, cranes and the rest of the yellow iron, new or used, from $50K to $5M.
Updated September 2026
Heavy equipment financing is a loan or lease secured by the machine itself. For most construction and earthmoving businesses it runs 6–22% APR over 2–7 years with 0–20% down, and a clean file (a dealer quote plus three months of bank statements) can be approved in 1–3 business days. Lenders price the deal on two things: how easily the machine resells, and whether your deposits cover the payment in your slowest months.
| Typical amount | $50K–$5M per transaction, from one machine to a multi-unit package |
|---|---|
| Rates | 6–22% APR; established contractors with strong credit sit at the low end |
| Terms | 2–7 years, limited by the machine’s remaining useful life |
| Down payment | 0–20%; more for newer businesses or older machines |
| Credit | 600+ typical; 550–600 with a larger down payment or extra collateral |
| Time in business | 1+ year preferred; 2+ years for the best pricing |
| Revenue | $15K+ a month in business deposits |
| Used machines | Financed routinely; hours, condition and age at term end set the limits |
| Speed | 1–3 business days for a clean file; most close within about two weeks |
| Equipment | New | Used |
|---|---|---|
| Mini excavator (1–6 tons) | $30K–$110K | $20K–$70K |
| Mid-size excavator (11–25 tons) | $190K–$300K | $80K–$200K |
| Large excavator (30+ tons) | $350K–$700K+ | $150K–$450K |
| Skid steer / compact track loader | $40K–$120K | $15K–$85K |
| Wheel loader | $150K–$450K | $60K–$300K |
| Crawler dozer | $150K–$600K+ | $60K–$400K |
| Rough-terrain / mobile crane | $500K–$2M+ | $200K–$1M |
Typical 2026 dealer and auction pricing for common configurations. Attachments, hours, emissions tier and region move the number; lenders size the deal from your written quote, not from a table.
Illustrative level monthly payments on the amount financed after any down payment. Your rate depends on credit, time in business, the machine and the lender.
| Example | Financed | APR · term | Payment |
|---|---|---|---|
| New mid-size excavator, established contractor | $250K | 9% · 60 mo | $5,190/mo |
| Same machine, thinner credit file | $250K | 16% · 60 mo | $6,080/mo |
| Used wheel loader | $150K | 12% · 48 mo | $3,950/mo |
| Two-machine package | $500K | 10% · 72 mo | $9,260/mo |
Heavy equipment is some of the best collateral in commercial lending, because a lender that has to repossess an excavator or a wheel loader can sell it in weeks. That is why approvals often exceed what the same business could borrow unsecured. The lender still underwrites two separate questions, and a file has to pass both.
The lender estimates what the machine would bring in an orderly sale, not what the dealer is asking. Popular sizes of excavators, loaders and skid steers from established manufacturers have deep auction markets and finance on the best terms. Specialised machines with a thin resale market (a tunnel boring machine, a custom attachment) finance on shorter terms or need more down. On used equipment the lender will ask for the serial number, hours and photos, and on larger or older units an inspection or appraisal.
Construction revenue arrives in draws and retainage, so lenders read bank statements for the pattern: average monthly deposits, the lowest month, existing equipment payments, and whether the new payment fits in the slow season. A contract backlog, bonding capacity and a history of repeat customers all help. Expect a personal guarantee from owners with 20% or more of the company, a UCC lien on the machine, and a requirement to name the lender as loss payee on your equipment insurance.
Machine-by-machine detail, with 2026 prices and payment examples, is on the pages for excavators, wheel loaders, bulldozers, skid steers and track loaders, backhoes and cranes.
In much of the country, earthmoving slows from December to March. Many equipment lenders will match the payment schedule to that season rather than force twelve equal payments. The common structures:
Interest keeps accruing during a skip or deferral, so the total cost is slightly higher than a level schedule. Availability varies by lender and it has to be set up at signing, not requested in January. Ask for it in the application.
Used machines typically cost 30–50% less than new and finance routinely. Lenders set limits in three ways: the age of the machine at the end of the term (commonly 10–15 years for mainstream earthmoving equipment), hours and condition, and how the machine is being bought.
Budget for what a used machine will need in its first year. Undercarriage, hydraulics and after-treatment systems are the expensive items, and a lender will not lend against a repair you have not priced.
The right structure depends on how long the machine will stay in your fleet.
Our equipment financing guide walks through lease types and total-cost math in more detail.
Financed equipment qualifies for Section 179 the same as a cash purchase. For tax years beginning in 2026 the maximum deduction is $2,560,000, reduced dollar-for-dollar once qualifying purchases for the year pass $4,090,000 (IRS Publication 946). The machine has to be placed in service, delivered and available for use, by December 31 to count for the year, so a fourth-quarter purchase needs the financing approved before the dealer can deliver. Bonus depreciation is a separate first-year deduction with its own rules. Confirm the treatment with your CPA before you time a purchase around it.
Equipment financing is the cheapest way to buy the machine, because the machine secures it. It is the wrong tool for what surrounds the machine: mobilization, fuel, payroll during a slow draw, or the repair that has to happen this week. For those, working capital funds in days against your deposits, and invoice factoring for construction companies turns approved pay applications into cash.
For construction-specific equipment strategy, see construction equipment financing. To compare every equipment product we place, start at equipment financing, where one application goes to 100+ funding partners.
Yes. Used excavators, loaders, dozers and cranes finance routinely, usually at a slightly higher rate and shorter term than new. Lenders look at hours, condition and how old the machine will be at the end of the term, and larger or older units may need an inspection or appraisal.
Many lenders want mainstream earthmoving equipment to be no more than about 10 to 15 years old at the end of the financing term. An older machine can still qualify with a shorter term, a larger down payment or an appraisal showing strong resale value.
Most lenders look for a 600+ personal credit score. Scores from 550 to 600 can still qualify, usually with 10 to 20 percent down or additional collateral, because the machine secures the deal. Strong deposits and time in business matter as much as the score.
Yes. For a private sale the lender runs a lien search and pays the seller directly. For an auction, get pre-approved before you bid, because auction terms usually require payment within a few days.
Many equipment lenders offer seasonal schedules that skip two to four winter months or defer the first payment 60 to 90 days. Interest still accrues during the skipped months, and the schedule has to be arranged at signing.
Yes, though with more conditions. Businesses under two years old usually need stronger personal credit, 10 to 20 percent down, and a machine with good resale value. Compact equipment such as mini excavators and skid steers is the easiest starting point.
Financed over 60 months at 9% APR, $250,000 is about $5,190 a month. At 16% APR the same amount is about $6,080 a month. Your rate depends on credit, time in business and the machine.
One application goes to 100+ funding partners, with no impact on your credit score. Send a quote or invoice and we will come back with real numbers.
