Heavy Equipment Financing for Construction Companies
A complete comparison of loans, leasing and credit lines for excavators, loaders and other heavy equipment — with real rates and the requirements lenders actually check.
Overview
How construction equipment financing works
Construction businesses rarely pay cash for excavators, loaders or dump trucks — the equipment itself typically becomes the collateral for the loan or lease that pays for it. That's what makes this type of financing more accessible than a general business loan, even for companies that haven't been operating for very long.
The right option depends mostly on how long you'll use the equipment and how you want it to show up on your books. Below are the three structures contractors use most, followed by a real comparison of lenders and the requirements each one checks before approving an application.
Types of financing available
Equipment Loans
You own the equipment from day one. Fixed monthly payments, and the machine itself secures the loan. Best when you plan to use it for years.
Equipment Leasing
Lower upfront cost, often $0 down. You return, renew or buy out the equipment at the end of the term. Better for equipment that changes fast.
Business Line of Credit
A flexible credit limit you draw from as needed — useful for smaller attachments, repairs, or covering payroll between projects.
What lenders typically require
- Time in business2+ years for the best rates; some lenders accept 6–12 months with a larger down payment
- Annual revenue$150,000+ is the common minimum for prime lenders
- Credit score600+ for most lenders; 680+ to unlock the lowest rates
- Down payment10–20% for loans; often $0 for leasing
- CollateralUsually just the equipment itself; some lenders add a UCC lien on other business assets
Comparison
Construction equipment lenders compared
Rates shown are indicative starting rates for well-qualified applicants and are reviewed quarterly. See our comparison methodology for how each lender is verified.
| Lender | Rate from | Term | Min. credit | Best for | Status |
|---|---|---|---|---|---|
| Apex Equipment Capital | 6.9% | 24–72 mo | 640 | New equipment loans | Verified |
| Ironline Finance | 7.4% | 36–84 mo | 600 | Longer terms | Verified |
| BuilderCredit Co. | 8.1% | 12–60 mo | 580 | Newer businesses | Verified |
| Northgate Leasing | 7.8% | 24–60 mo | 620 | $0-down leasing | Verified |
| TerraFund Capital | 7.2% | 24–72 mo | 660 | Fast funding (48h) | Verified |
| Crestpoint Lending | 8.6% | 12–48 mo | 560 | Subprime credit | Verified |
Rates last verified: July 2026. Individual offers depend on credit profile, revenue and equipment type.
Process
How to apply, step by step
Gather your financial documents
Bank statements (3–6 months), tax returns, and a revenue summary. Having these ready is the single biggest factor in getting funded faster.
Get an equipment quote
Most lenders want a specific quote from the dealer or seller before approving — it confirms the exact amount being financed.
Compare pre-qualification offers
Pre-qualification usually uses a soft credit check, so you can compare 2–3 lenders without affecting your credit score.
Submit the full application
This triggers a hard credit check. Only do this with the lender you're actually moving forward with.
Sign and fund
Funding typically takes 2–10 business days depending on the lender and how complete your documentation is.
Common mistakes to avoid
- Applying to many lenders at once instead of pre-qualifying first — multiple hard inquiries can lower your credit score.
- Comparing only the monthly payment instead of the total cost of the loan or lease over its full term.
- Not checking the buyout terms on a lease until the end of the term, when options are more limited.
- Underestimating how a large down payment affects short-term cash flow on active projects.
FAQ
Common questions
Can I get equipment financing with bad credit?
Yes, though rates will be higher. Lenders like Crestpoint Lending in the comparison above work with scores as low as 560, usually with a larger down payment or shorter term to offset the risk.
What's the difference between leasing and an equipment loan?
With a loan, you own the equipment once it's paid off and it appears as an asset on your books. With a lease, you typically pay less upfront and can upgrade more easily, but you don't build equity in the equipment unless you choose a buyout option.
How fast can I get funded?
Some lenders, like TerraFund Capital, fund in as little as 48 hours once the full application and documents are submitted. Most others take between 3 and 10 business days.
Do I need a down payment?
For equipment loans, most lenders ask for 10–20% down. Leasing often requires $0 down, though your monthly payment will be higher to offset that.
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