Heavy Equipment Financing
Heavy equipment financing for excavators, wheel loaders, dozers, skid steers and the rest of the yellow iron: loans and leases, new or used, from $50K to $5M.
Heavy equipment financing for excavators, wheel loaders, dozers, skid steers and the rest of the yellow iron: loans and leases, new or used, from $50K to $5M.
Updated October 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 |
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 financing rates run 6–22% APR in November 2026. Two things decide where a deal lands in that range: the structure you choose, which sets the band, and your credit tier, which sets the position inside it. A machine with a deep resale market, such as a mid-size excavator or a wheel loader, prices toward the bottom of each band; a used, older or specialised unit toward the top.
| Structure | Typical rate | Term | Down payment | Best when |
|---|---|---|---|---|
| Equipment finance loan | 7–14% APR for established contractors | 5–7 years | 10–20% | You will keep the machine for most of its life |
| $1 buyout lease | Quoted as a monthly payment; ask for the implied rate | Matches the loan term | Often first and last payment | You want ownership at term end with lease-style payments |
| Fair-market-value (operating) lease | Quoted as a monthly payment | Shorter than useful life | Low | You replace machines every three to five years |
| SBA 504 | 7.0–8.0% blended | 10 years for equipment | 10%+ | A single purchase of $500K or more |
| Credit | Typical APR | Term | Down payment |
|---|---|---|---|
| 700+ FICO (2+ years in business) | 6–14% | 3–7 years | 0–10% new, 10–25% used |
| 650–699 FICO | 12–18% | 3–5 years | 10–25% |
| 620–649 FICO | 12–20% | 3–5 years | 15–25% |
| 580–619 FICO | 18–22% | 3–4 years | 20–30% |
Below 580 FICO, standard programs generally are not available, and a deal is decided case by case on the down payment, extra collateral and deposits. Leases are usually quoted as a monthly payment rather than a rate, so ask every lender for the implied APR and the total of payments before you compare offers. The example payments above show what the gap between a 9% and a 16% offer costs on the same $250,000 machine.
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.
| Check | What most lenders want |
|---|---|
| Credit and down payment | Standard programs from 580 FICO; 600+ is typical. Down payment, APR and term by credit tier are in the rates by credit score table above. |
| Machine age | About 10–15 years old or newer at the end of the term for mainstream earthmoving equipment |
| Hours | Standard terms come easiest under roughly 5,000 hours; past about 10,000 hours, expect a shorter term, more down or an inspection |
| Used machines | Serial number, hours and photos on every used unit; an inspection or appraisal on larger or older ones |
| Time in business | 1+ year preferred; 2+ years for the best pricing |
| Newer businesses | Under 2 years: stronger personal credit, 10–20% down and a machine with good resale value |
| Revenue | $15K+ a month in business deposits, shown on 3 months of bank statements (6 for larger requests) |
A file that clears every row is still priced on the two questions below: what the machine would bring in an orderly sale, and whether your deposits cover the payment in your slowest months.
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.
Cranes and boom trucks are underwritten on different terms from earthmoving machines: an appraisal instead of a price guide, the annual inspection and load chart, and longer terms on older units. They have their own page, crane financing, with 2026 crane prices, rates and payment examples.
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 1,800+ funding partners.
The lender pays the dealer or seller for the machine, and you repay over 2 to 7 years while the machine serves as the collateral, with a lien on it until the last payment. You apply with a dealer quote and three months of bank statements. The lender checks what the machine would resell for, your credit, and whether your deposits cover the payment in your slowest months, and a clean file can be approved in 1 to 3 business days. Rates run 6 to 22 percent APR with 0 to 20 percent down, and with a loan or a $1 buyout lease you own the machine at the end.
Heavy equipment financing rates run 6 to 22 percent APR. Established contractors with 700+ credit and a machine that resells well sit at 6 to 14 percent; thinner credit, used or specialised machines price higher. SBA 504 financing for a single purchase of $500K or more blends 7.0–8.0%.
Yes. Used excavators, loaders, dozers and skid steers 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, and standard programs fund down to 580 because the machine secures the deal. Below 580, a deal is decided case by case on the down payment, additional collateral and deposits. Strong deposits and time in business matter as much as the score.
Yes. Because the machine secures the deal, standard programs fund down to 580 FICO. Expect at 650 to 699 FICO, 10 to 25 percent down at 12 to 18 percent APR; at 620 to 649 FICO, 15 to 25 percent down at 12 to 20 percent APR; at 580 to 619 FICO, 20 to 30 percent down at 18 to 22 percent APR. A late-model excavator or loader with a deep resale market prices toward the low end of each range; an older, high-hour or specialised machine toward the top.
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 1,800+ funding partners, with no impact on your credit score. Send a quote or invoice and we will come back with real numbers.
