Construction Equipment Financing: Excavators, Skid Steers, Attachments and Work Trucks
The machine carries part of the decision. The provider pays the seller and collects on a schedule.
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Rates, factor rates, fees and terms are set by the funding provider that makes your offer and are disclosed in that provider's agreement. Figures on this page are illustrative ranges from providers in our network, not offers.
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This page is part of our guide to financing for construction companies and contractors and applies the general rules of equipment financing to excavators, skid steers, trucks and lifts.
How the deal works when the asset is a machine
You pick the machine first, then apply for that asset.
Send the document
The dealer quote, auction lot or bill of sale, with the serial number or VIN.
A provider decides
It reads the machine's age, value and resale market, then your file.
Funds go to the seller
Not into your account. The provider records a lien on the machine.
You pay on schedule
The amount, frequency and term are set in the financing agreement you sign.
The size of the deal
Larger deals need full documentation, up to $5M with some providers. A credit profile that would stop a term loan can still reach an equipment offer, at a smaller amount and a shorter schedule.
Loan or lease
Providers write it as a loan or as a lease. The agreement says which it is, who holds title at the end and what a purchase option costs. Leasing vs buying business equipment covers the choice.
What contractors actually finance
Earthmoving
Excavators and minis, skid steers, track loaders, backhoes, wheel loaders and dozers.
The easiest to place: a deep resale market and known models.
Attachments
Breakers, augers, grapples, mulching heads, buckets, compactors and trenchers.
Easiest with the carrier; some providers have a deal minimum.
Work trucks and trailers
Service bodies, dump trucks, flatbeds, equipment and dump trailers.
Titled assets: recording the lien adds a step, sometimes a fee.
Lifts, cranes and concrete
Telehandlers, cranes, boom and scissor lifts, rollers, mixers, pumps and generators.
Small items such as welders go easiest with a larger machine.
New, used and bought at auction
In this trade the asset moves the decision as much as the file does.
New from a dealer
The provider gets an invoice, a serial number, a warranty and a known resale market to read.
Schedules tend to run longest here: a new machine has the most working life left.
Used
Age, hours, condition and service history all count. More hours usually mean a shorter schedule and sometimes a larger deposit.
Private sale: some providers limit it; others inspect, check liens and pay the seller.
At auction
Settlement comes in days: get approval before you bid. A machine sold as-is may need work before it earns.
- Buyer's premium: not in the hammer price
- Transport from the yard: yours to arrange
Deposit, schedule and the tax question
Deposit
Some providers ask for one, or the first and last payment up front; others need none. A larger deposit can help a weaker file.
Schedule
Match the schedule to the working life of the machine, not to the length of the job that justified it.
Nor should the payments outlive the machine.
Tax
Financed equipment may qualify for a depreciation deduction, including Section 179 or bonus depreciation.
Whether it applies: consult your tax advisor.
Worked example
Illustrative example, not an offer.
A grading contractor needs two assets in one month: a compact machine with attachments at auction, and a service truck from a dealer.
- A used skid steer with a breaker and a grapple, at auctionEquipment financing, approved before the bid$75,000
- A service truck with a utility body, from a dealerEquipment financing, titled, with the lien recorded$62,000
Amounts, rates, fees and schedules are set by the funding provider that makes each offer and are disclosed in that provider's agreement.
Decisions from some providers the same day, depending on the provider. Subject to provider approval and document turnaround.
What you need to apply
Some providers consider applications at these minimums.
- time in business
- 12 months
- monthly revenue
- $15K
- credit considered from
- 525
- bank statements
- 3 months
Meeting a minimum does not guarantee an offer.
Bring, on top of the statements
- The quote or dealer invoice, with the serial number or VIN
- Your contractor license number
- A certificate of insurance that will cover the machine
- A government ID
Buying private-party or at auction? Say so: it changes which providers can look at the file.
Where this fits, and where it does not
It fits
- A machine you will still be running in several years
- Replacing a rental you keep re-renting, job after job, at a monthly cost
It does not fit
- A machine for one job: usually cheaper rented
- A repair to a machine you own: not a purchase
- A pay-application gap: timing, not an asset problem
Frequently asked questions
In short
Construction equipment financing ties the deal to the machine. A provider in our network pays the seller, takes a lien on the excavator, skid steer or work truck, and collects on a schedule. Because the asset carries part of the decision, some providers consider up to $500K on the application alone, depending on the funding provider.
Can I finance used construction equipment?
Yes, and used machines are financed every day. Age, hours, condition and the depth of the resale market set the terms rather than the word used. A machine from a dealer is the straightforward case. A private-party or auction purchase narrows the field of providers and usually adds an inspection or an appraisal, depending on the funding provider.
Can equipment financing be arranged before an auction?
It has to be, in practice. An auction wants settlement in days, so apply and get an approval in place before you bid rather than after you win. Tell the provider which sale you are bidding at and what the lot is. Then bid inside the amount that was approved, because the premium and the transport sit on top of the hammer price.
How much deposit does construction equipment financing need?
It varies by provider, by machine and by file. Some providers ask for a deposit or for the first and last payment up front; some structure the deal with nothing down. A larger deposit is also the most common way a weaker file gets to an offer. Ask what each provider requires before you compare two schedules.
Do attachments count as financeable equipment?
Usually, and most easily when they go on the same deal as the carrier. A breaker, auger, grapple or mulcher bought with the excavator is normally included in the amount financed. Bought on its own, a small attachment can be an awkward ticket: some providers have a minimum deal size, so a standalone attachment may be better paid for out of working capital.
What credit profile do providers want for a machine?
Lower than a term loan asks for, because the machine carries part of the decision. Some providers consider credit from 525 with 12 months in business and $15,000 in monthly revenue. Some providers consider applications at these minimums. Meeting a minimum does not guarantee an offer. A weaker profile generally means a smaller first amount, a larger deposit and a shorter schedule.
Is financed equipment tax deductible?
Financed equipment may qualify for a depreciation deduction, including Section 179 or bonus depreciation, and the cost of funds may be treated differently again. What applies depends on your entity, your year and the asset, and the rules change. Nothing on this page is tax advice — consult your tax advisor.
Still have a question?
talk to a funding advisorCapital Gurus is not a lender. Rates, fees and terms are set by the funding provider and disclosed in your agreement. Capital Gurus · 1700 S Pavilion Center Dr, Ste 420, Las Vegas, NV 89135.
Nothing on this page is financial, legal or tax advice.
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