Equipment financing
Ask about collateral, down payment, personal guarantees, fees and early payoff. Confirm the seller is paid only after required delivery or acceptance steps.
Contractors & equipment operators
Construction equipment financing
Financing a skid steer, excavator or other jobsite equipment starts with the exact machine, seller and scope of use. Compare the full acquisition cost and the contract’s ownership terms.
Independent education. No application or credit check on this page.
Before you finance
Match the financing to the machine and the workload.
Review the equipment’s age, hours, service information and intended work before borrowing. Ask what inspection, title or lien documentation the lender requires, particularly for used equipment or a private-party sale.
Machine and attachments
Include the specific unit, attachments, transport, delivery and applicable tax in the quote.
Seller and condition
Confirm lender rules for dealers, auctions and private sellers, and ask which inspections or records are needed.
Operating cash flow
Budget for maintenance, insurance, transport and downtime. Test the payment against work you can reasonably support.
The complete purchase cost
How much should you budget?
There is no single price that represents every scope, location and seller. Build your financing budget from written, itemized quotes. The payment examples below are hypothetical borrowing amounts, not estimates of what this purchase should cost.
| Budget item | What to confirm |
|---|---|
| Machine condition | Document model, serial number, hours, inspection, attachments and service history. |
| Transport and readiness | Price delivery, hauling equipment, setup and immediate repairs. |
| Contract requirements | Identify insurance, down payment, security interests and any personal guarantee. |
| Utilization and downtime | Compare committed work, rental alternatives, service availability and payment obligations during downtime. |
Decide the scope before the payment.
For used equipment, ask about age, hours and private-seller restrictions before paying a deposit. Compare financing with renting for the specific workload rather than assuming every job requires ownership.
Prepare before applying
What affects eligibility?
There is no universal business-credit or owner-credit cutoff for equipment financing. Ask each provider which requirements apply to your business and purchase before authorizing a credit check.
- Business history, revenue and cash-flow records, including seasonal changes.
- Owner information, possible personal-credit review and any personal guarantee.
- Vendor quote, equipment condition, intended use and down payment.
- Collateral, insurance, payoff method and any end-of-term obligation.
For a startup, ask explicitly whether the program accepts your business stage and what evidence of repayment ability it needs. Do not assume a business registration or a strong personal score alone guarantees approval.
Compare offers on the same basis.
Get the same information for each written offer: amount financed, cash available after deducted fees, payment amount and frequency, total scheduled payments, all separate fees, collateral and early-payoff terms.
For a lease, also compare ownership, residual or buyout price, return conditions and renewal notice deadlines. A quoted factor rate or lease payment is not directly comparable to an installment-loan interest rate. Ask for the full payment schedule and a written payoff quote for the date you expect to exit.
Another financing route
Could an SBA program fit?
SBA microloans support eligible business equipment purchases up to $50,000 through participating intermediaries. SBA 7(a) financing also permits equipment purchases, subject to program and lender requirements. These are business programs, not household equipment loans.
Read SBA microloan requirements · Read SBA 7(a) requirements
A worked financing example
What does a longer repayment term change?
Purchasing a skid steer, excavator or other jobsite machine? To see the tradeoff, assume you borrow $80,000.00 at a fixed 12% annual interest rate, with no fees and equal monthly payments.
| Term | Monthly payment | Total repayment | Total interest |
|---|---|---|---|
| 3 years | $2,657.14 | $95,657.21 | $15,657.21 |
| 5 years | $1,779.56 | $106,773.35 | $26,773.35 |
| 7 years | $1,412.22 | $118,626.36 | $38,626.36 |
Original calculations by The Loan Yard. Payments are rounded for display; totals use unrounded payments. These are not lender offers, market rates, typical project prices or an approval estimate. The example excludes fees and does not model leases, balloon payments, variable rates or seasonal schedules.
A longer term reduces the monthly payment in this example but increases total interest. Try your actual written terms in the payment estimator.
03 / The numbers
Estimate an installment payment.
Try a loan amount, interest rate and repayment term. Then look at total repayment—not just the monthly number.
Illustrative fixed-rate installment loan. These inputs are examples, not advertised loan terms. The interest rate is not the APR, which can include fees. This does not model leases, balloon payments, variable rates or seasonal schedules.
Estimated monthly payment$1,779.56
Total repayment$106,773.35
Total interest$26,773.35
Cash after deducted fee$80,000.00
Deducted origination fee$0.00
Assumes the fee is deducted from the original loan amount, not added to principal. Excludes other charges. Actual repayment depends on the lender's terms. Values stay in this page; no credit information is requested.
Before you sign
Ask the seller
and finance provider.
- Is this seller and the machine’s age or condition eligible?
- Who verifies ownership and resolves any existing lien?
- What must happen before the lender pays the seller?
Common questions
Construction equipment financing FAQs
Can I finance used construction equipment?
Some lenders permit it. Eligibility may depend on the machine, condition, seller and documentation. Confirm these details before paying a deposit.
Can attachments and delivery be included?
Possibly. Provide an itemized quote and ask which related costs are financeable and which you must pay separately.
Is renting better than financing?
Compare the expected workload, rental costs, ownership expenses and contract obligations. A short or uncertain job pipeline may lead to a different decision from steady recurring work.
Sources & further reading
Review the terms
and eligible uses.
Published by The Loan Yard editorial team · How we research our guides
Reviewed October 13, 2026. Payment inputs are illustrative, not equipment price averages or lender offers. Commercial source links are unpaid examples, not partner endorsements.