Equipment Financing
Term debt secured by the machine — the standard route for iron a contractor plans to run through its full service life.
Industries · Construction
Construction equipment financing
Excavators, cranes, and paving spreads earn on the job, not in the yard. This page covers how construction equipment is typically financed, what gets reviewed, and the documents to have ready.
The work
Equipment reality
Construction is a machine-heavy trade. Excavators, loaders, dozers, and cranes carry the production schedule, and they are usually the largest capital items a contractor owns. The equipment ages in hours, not years — owners track engine hours and undercarriage wear the way accountants track depreciation. When a bid lands, the iron has to be on site by mobilization day whether or not cash is free to buy it.
Financing structures for construction equipment include term loans secured by the machine, leases with end-of-term options, and sale-leasebacks on iron a contractor already owns. New and used machines are both routinely financed, including dealer, auction, and private-party purchases. Requests are typically reviewed against the machine's age and hours, the contractor's revenue history, and existing equipment debt. The machine itself serves as collateral, which is why iron with a strong resale market is familiar ground for equipment lenders.
Eligible equipment
What typically qualifies
- tracked and wheeled excavators
- wheel loaders
- dozers
- skid steers and compact track loaders
- motor graders
- articulated haul trucks
- backhoe loaders
- mobile and rough-terrain cranes
- asphalt pavers and cold planers
- compaction rollers
- concrete pumps and mixer trucks
- telehandlers
- trenchers and directional drills
- hydraulic attachments — breakers, augers, grapples
Structures
Ways to structure it
Equipment Leasing
Fits machines matched to a contract's length, or fleets turned over before major component overhauls come due.
Sale-Leaseback
Converts paid-off machines into working capital while they keep working the job.
Large-Ticket Commercial Financing
For crane packages, paving spreads, and multi-machine purchases that outgrow a single-machine request.
Qualification
What lenders typically weigh
- Time in business — established contractors read differently than first-year operators, and newer businesses typically see more weight on down payment and owner history.
- Machine age, hours, and condition — used iron is normal here, and lenders typically weigh remaining useful life against the term.
- Revenue consistency across the season — winter slowdowns are expected, and reviews typically read a full year rather than one strong quarter.
- Existing equipment debt and payment history on it.
- Down payment or trade-in equity available.
- Awarded work — a backlog of signed contracts is a point in the file, not a requirement.
Descriptive, not a promise — factors and weightings vary by file.
Checklist
Documents to have ready
- Recent business bank statements — several months is typical
- Business tax returns, typically the last two years
- Equipment quote, purchase order, or auction listing
- Current equipment list and debt schedule
- Government ID for the owners
- Contractor's license, where the trade requires one
- Insurance agent contact for the certificate of insurance
Questions
Asked and answered
Used equipment is routine in construction financing. Requests for used iron are typically reviewed on age, hours, condition, and the machine's resale market. Dealer sales, auction purchases, and private-party deals are all common — private-party purchases usually involve extra steps, such as a lien search and an inspection or appraisal.
Usually, yes. Buckets, breakers, augers, grapples, and other attachments quoted with the machine are commonly rolled into the same request. Attachments bought separately can also be financed, though small attachment-only requests are handled differently than a machine purchase.
Seasonality is normal in construction, and lenders in this space expect it. Reviews typically look at revenue across a full year rather than judging the slow months alone. Some structures allow payment schedules shaped around the working season; terms vary by lender and situation.
Time in business is one factor among several, not a cutoff. Newer contractors are typically reviewed with more weight on down payment, the owners' credit history, trade experience, and the specific machine. The eligibility check on this site gives a directional read without collecting contact details.
Related industries
Run the numbers. Then decide.
The calculators and the eligibility check show results on the page — no email required, no contact details collected. When the structure makes sense, the application asks for the equipment, the amount, and your timeline. Terms arrive in writing before anything is owed.