Construction Equipment Financing

How Construction Equipment Financing Works

We’ve built our financing process for contractors who are ready to move fast.

Step 1: Fill Out Your General Profile

Quick questions about you and your business.
No credit check. No pressure. Just enough to get the ball rolling.

Step 2: Complete Your Business & Ownership Profile

Provide:

• Business name, time in operation, EIN, annual sales

• Owner info (SSN, % ownership, home address)

• Equipment details

Upload:

• 3 months of business bank statements

• Driver’s license

• Invoice, bill of sale, or equipment link

Step 3: Review & Match Within 24 Hours

Our underwriting team reviews your profile within 24 hours, evaluating:

• Time in business (2+ years preferred)

• Credit score (650+ ideal)

• Monthly cash flow ($5,000+ ending balance)

We then match you with a trusted lender who understands your industry.

Step 4: Get Approved — Fast

If you qualify, you’ll receive:

• Rate range

• Estimated monthly payment

• Term length and down payment (if any)

From there, it’s just signing docs and getting funded — often within 1–3 business days.

Tip: Uploading your bank statements, ID, and invoice upfront speeds up everything.

Construction Equipment Financing Rates, Terms & Monthly Payment Estimates

Your terms depend on credit, business history, and equipment type — but here’s what most of our borrowers see:

What Affects Your Rate?

• Credit Score: 650+ opens better programs

• Time in Business: 2+ years unlocks stronger terms

• Cash Flow: $5,000+ average balance gives options

• Equipment Type & Age: Newer machines = longer terms

Construction Equipment Loan vs. Capital Lease

When financing construction equipment, you’ll often choose between a loan (traditional equipment financing) and a capital lease.

Equipment Loan (Financing):
Best if you want full ownership and long-term use.

• You own the equipment outright at the end
• Can finance new or used equipment
• Build equity as you pay down the balance
• Typically lower total cost over time

Consider if:

• You plan to keep the machine 5+ years

• You want more flexibility in use and resale

• You’re looking to maximize long-term ROI

Capital Lease:
Structured like financing — but treated differently for tax and accounting purposes.

• Treated as an asset on your balance sheet
• Lower monthly payments than a straight loan in many cases
• Often includes a $1 buyout option at the end (you own it)
• Preserves more cash flow while still giving ownership benefits

Consider if:

• You want tax and accounting advantages

• You’re looking for lower monthly payments than a standard loan

• You want the option to upgrade or buy out later at minimal cost

Pro Tip: Capital leases can be more flexible than traditional loans when it comes to structuring payments around seasonal cash flow — especially in construction where jobs fluctuate.

Who Qualifies for Construction Equipment Financing?

We work with serious contractors ready to grow their business.

Can You Write Off Construction Equipment Purchases?

Yes. Thanks to Section 179 and bonus depreciation, financing equipment can deliver massive tax savings — even if you don’t pay cash.

Section 179 Deduction (2025):

• Deduct up to $1,250,000 of qualifying equipment purchases

• Applies to both new and used equipment

• Must be used 50%+ for business purposes

• Applies even if you finance or lease the machine

Bonus Depreciation:

• Deduct up to 40% of remaining basis after Section 179

• Can be stacked for even larger deductions in year one

Example:
If you finance a $120,000 excavator in 2025, you could deduct the full $120,000 this tax year — even though you’re making payments monthly.

Why It Matters:

• Lowers taxable income significantly

• Keeps your cash available for payroll, fuel, and job expenses

• Lets you expand without draining reserves

Pro Tip: Many contractors time equipment purchases before year-end to maximize Section 179 benefits. Talk to your CPA — then act quickly to capture the deduction.

Construction Equipment Financing for Start-Ups

Getting approved as a start-up can be tough — but not impossible. We’ve built programs specifically for new construction businesses that are still getting established.

Minimum Requirements for Start-Up Financing:

• At least 18 months of verifiable industry experience (construction, excavation, paving, site prep, or related trades)

• Less than 2 years in business

• Minimum 20% down payment on the equipment

• Credit score: ideally 625+, but lower considered with larger down payment

• Proof of contracts or steady work pipeline preferred

Typical Terms:

• Loan Amount: $25,000 – $150,000+

• Term Length: 24–48 months

• Rates: 12%–20% (depending on credit, down payment, and equipment type)

• Down Payment: 20%–30% (sometimes higher for newer or specialized machines)

Best For:

• Owner-operators branching out from employment to self-employment

• Contractors winning new jobs who need heavy equipment to scale

• New businesses building credit history in commercial lending

Pro Tip: Showing signed contracts, job bids, or steady cash flow from side work can significantly improve approval chances for start-ups.

Construction Equipment Financing for Bad Credit

If your credit score is below 625, you still have options. Many contractors face challenges due to personal credit, but strong cash flow and down payment can make the difference.

Minimum Requirements:

• Credit Score: Below 625

• Down Payment: 40%–50% of purchase price

• Equipment: Preferably newer equipment in good working order

• Monthly Cash Flow: Consistent deposits shown in business or personal accounts

Typical Terms:

• Loan Amount: Up to $45,000–$75,000 depending on file strength

• Term Length: 24–36 months (shorter terms common)

• Rates: 15%–30% (based on risk profile)

• Funding Timeline: 2–5 business days once approved

Best For:

• Contractors with steady work but past credit issues

• Businesses with strong cash reserves that can cover higher down payments

• Operators purchasing lower-cost used equipment to stay profitable

Pro Tip: The bigger your down payment, the more flexibility lenders have — and the lower your rate may fall within the offered range.

Construction Equipment Financing FAQs

Q: What credit score do I need?
650+ recommended. Lower scores possible with higher down payment.

Q: How much down payment is required?
Often 0%–20%. Start-ups and bad credit may require more.

Q: How long does it take?
Approvals in 24 hours, funding in 1–3 business days.

Q: Can I finance used equipment from a private seller?
Yes — we finance dealer, private, and auction purchases.

Q: What documents do I need?

• 3 months of bank statements

• Driver’s license

• Invoice, bill of sale, or equipment link