Equipment Financing for Construction
That excavator costs $85,000 but would open new project types. A newer dump truck runs $75,000 but yours is costing more in repairs than payments would be. Equipment financing preserves the working capital you need for materials and payroll while building the fleet your company requires.
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Construction Equipment Economics
Heavy equipment represents significant capital investment. Smart financing decisions directly impact project capability, operational efficiency, and competitive positioning.
Equipment Cost Reality
Mini excavator: $30,000-$90,000. Skid steer: $25,000-$75,000. Dump truck: $50,000-$150,000. Backhoe: $60,000-$120,000. Quality equipment represents major investment.
Equipment ROI
Owned equipment versus rental changes project economics dramatically. A $60,000 mini excavator generating $3,000 weekly pays for itself in under 2 years.
Useful Life
Heavy equipment lasts 10,000-15,000 operating hours. With proper maintenance, 10-15 years of productive life is common. Financing over equipment life makes payments manageable.
Section 179 Benefits
Construction equipment purchases may qualify for Section 179 deduction, allowing full cost deduction in the purchase year. Financed equipment qualifies.
The Construction Equipment Challenge
Heavy equipment requires significant investment. Financing preserves operating capital for projects.
Cash vs. Equipment Needs
Purchasing an $85,000 excavator outright depletes working capital needed for materials and payroll. But project capability demands the equipment.
Rental vs. Own Economics
Renting equipment long-term costs more than owning. But the upfront purchase cost is prohibitive.
Fleet Expansion
Growing project volume requires additional equipment. Each piece adds capability but requires capital.
Equipment Aging
Older equipment costs more in repairs and downtime than financing newer equipment would cost.
Project Requirements
Bid requires specific equipment you do not own. Miss the bid or find equipment financing.
Multiple Equipment Needs
Starting or expanding operations requires multiple pieces. Cash purchasing everything is impractical.
Construction Equipment Financing Process
From application to equipment deployment, most financing completes quickly.
Application
Complete online application with business information and equipment details. Provide dealer quote.
15 minutes
Credit Decision
We evaluate business financials, equipment value, and deal structure. Most decisions within 24-72 hours.
1-3 days
Documentation
Sign financing agreement and provide equipment invoice from your vendor or seller.
Same day
Funding & Delivery
Funds released to dealer/seller. Coordinate equipment delivery to your yard or jobsite.
1-3 days
Finance Equipment, Preserve Working Capital
Equipment financing structures payments across equipment useful life while keeping working capital available for projects. The equipment itself secures the financing, often enabling approval even with credit challenges.
100% Financing Available
Finance the full equipment cost for qualified businesses. No large down payment required.
Terms to 72 Months
Spread payments across equipment useful life. 6-year terms match typical heavy equipment longevity.
Equipment as Collateral
The construction equipment secures the financing. No need to pledge additional business assets.
New and Used
Finance brand new equipment from dealers or quality used equipment. Terms may vary by equipment age.
Fast Approvals
Project timelines do not wait. Get approval in 24-72 hours, not weeks.
Tax Benefits
Financed equipment may qualify for Section 179 deduction and depreciation benefits.
Construction Equipment Financing Scenarios
Common situations where equipment financing helps contractors.
Excavators
Mini excavators, compact excavators, and full-size machines for site work.
Typical funding: $30K-$150K
Skid Steers & Loaders
Skid steers, track loaders, and compact equipment for versatile site work.
Typical funding: $25K-$85K
Trucks
Dump trucks, flatbeds, service trucks, and work vehicles.
Typical funding: $40K-$150K
Specialty Equipment
Concrete equipment, paving, cranes, and trade-specific machinery.
Typical funding: $50K-$300K
Fleet Addition
Additional equipment to expand capacity and take on more projects.
Typical funding: $50K-$250K
Replacement
Replace aging equipment with newer, more reliable machines.
Typical funding: $40K-$200K
Equipment Financing vs. Alternatives
Understanding your options for acquiring construction equipment.
| Feature | Equipment Financing | Cash Purchase | Long-Term Rental |
|---|---|---|---|
| Cash Required | 0-10% down | 100% | Monthly rental |
| Ownership | At term end | Immediate | Never |
| Working Capital Impact | Preserved | Depleted | Ongoing cost |
| Tax Treatment | Sec 179 + Interest | Sec 179 | Operating expense |
| Build Equity | ✓ | ✓ | ✗ |
| Total Long-Term Cost | Moderate | Lowest | Highest |
| Flexibility | Own for life | Own for life | Return anytime |
| Best For | Ownership goal | Strong cash | Short-term need |
Construction Equipment Financing Requirements
Equipment financing often has flexible requirements because the equipment provides collateral.
Business History
Established construction business with operating history.
1-2 years preferred
Owner Credit
Owner credit reviewed as part of decision. Higher scores access better rates.
580+ for most approvals
Business Revenue
Revenue sufficient to support payment amounts.
Supports payment level
Equipment Type
Standard construction equipment from recognized manufacturers.
Mainstream equipment
Down Payment
Zero down available for strong credits. 10-20% may be required otherwise.
0-20% depending
Equipment Source
Dealers, auctions, and established equipment sellers.
Reputable sources
Equipment financing decisions weight equipment value heavily. Equipment collateral enables approval for contractors that might not qualify for unsecured financing.
Real Results
Summit Site Services
Site Work Contractor, Utah
The Challenge
Summit needed a larger excavator ($95,000) to bid on commercial site work. Cash reserves were committed to current projects. Purchasing outright would strain payroll capacity.
The Solution
We financed $95,000 over 60 months with the excavator as collateral. Monthly payments of $2,100 were easily supported by the projects the machine would enable.
The Result
Summit won two commercial projects within 90 days that required the larger machine. Equipment paid for itself in the first year. Still generating revenue 4 years later.
“We needed the bigger excavator to compete for commercial work. Financing meant we could grow without risking payroll on current jobs.”
Construction Equipment Data
Industry statistics informing equipment investment decisions.
Construction Equipment Financing Advantages
Strategic benefits beyond simple cash preservation.
Project Capability
Equipment opens new project types and bid opportunities.
Rental Elimination
Stop paying rental. Own equipment generating long-term value.
Competitive Positioning
Right equipment wins bids. Finance the capability you need.
Predictable Payments
Fixed monthly payments replace variable rental costs. Budget with certainty.
Fleet Building
Build equipment fleet over time. Each addition increases capacity.
Used Equipment Option
Finance quality used equipment at lower cost. Same capability, better value.