The yellow toy bulldozer with pile of coins against blurred background for saving money, investment, business and finance. concept: Heavy Equipment Financing
Timothy R
By: timothy-ronaldson
Read in 18 minutes

Best Heavy Equipment Financing For Your Construction Business In 2023

Seeking heavy equipment financing is a must for growth, and you can upgrade your business with the right lender.

In this blog post, we’ll discuss some of the best financing alternatives available in 2022, lenders, pros, cons, and all you need to know for acquiring reliable heavy equipment.

So if you’re looking for options for your business, then be sure to read on!

Table of Contents
1. Top 3 heavy equipment financing companies
2. 5 business equipment financing options
3. The best construction equipment financing options
4. How to get a business loan for equipment
5. How to finance heavy equipment
6. What is heavy or construction equipment finance?
7. Equipment financing vs. equipment leasing
8. Pros and cons of equipment financing
9. FAQs

Top 3 Heavy Equipment Financing Companies

Camino Financial

Perhaps the best loans for heavy equipment are in Camino Financial.

We offer some of the most attractive loan terms and serve many customers.

  • To qualify for a Camino Financial loan, you can have an SSN or ITIN.
  • You need to own at least 50% of the business. Your company has to be active and registered for at least nine months, with at least $30,000 in annual gross sales.
  • We offer small business loans of $5,000 to $400,000, with monthly repayment terms between 24 to 60 months.
  • We fixed business loans’ annual interest rates of 21.07% a 47.78% with a 5% origination fee.
  • We don’t charge any early payment penalties, and you can get your money fast—within two to 10 days.

In addition, after making 12 months of timely payments, you can graduate with Camino Financial. When you do this, you could get a second loan, which will make your heavy equipment financing even cheaper. Read here our small business loan requirements.

Apply for a business loan today

National Funding

Business financing for equipment from National Funding is an excellent solution for businesses that need to purchase new or used equipment but don’t have the cash on hand to do so.

There are a few things to consider before taking out a loan for your equipment:

  • Flexible repayment terms: National Funding offers loans with repayment terms that range from 12 to 84 months, so you can choose a plan that fits your budget.
  • No prepayment penalties: You can pay off your loan early without any penalties or fees.
  • Bad credit: Even if you have poor credit, you may still be able to qualify for a loan from National Funding.
  • High-interest rates: The interest rates on National Funding loans can be higher than other lenders.
  • Origination fees: You’ll have to pay an origination fee.
  • You must purchase the equipment from a National Funding partner: To finance your equipment through National Funding, you must buy it from one of their approved vendors. This limits your options when choosing the right equipment for your business.

Crest Capital

There are a few key things to consider when determining whether or not Crest Capital is the right provider for financing for construction companies.

  • First and foremost, it’s important to understand what type of financing you need. Crest Capital specializes in equipment leasing and loans, so if you’re looking for something else – like lines of credit or venture capital – they may not be the best fit.
  • Secondly, consider the total cost of ownership when making your decision. Leasing may have lower monthly payments, but it generally means you’ll end up paying more in the long run.
  • On the other hand, loans have higher monthly payments, but you’ll own the equipment outright once you repay the loan.
  • Third, think about the length of time you need the equipment. If you only need it for a short-term project, leasing may be the better option. But a loan makes more sense if you plan on using the equipment for many years.
  • Finally, consider your credit history and financial situation. If you have good credit, you may be able to get better terms and rates from Crest Capital. But if your credit is less-than-perfect, you may end up paying more in interest and fees.

5 Business Equipment Financing Options

When you need machinery to keep your business going—or take it to the next level—you need it fast.

These funding sources are among the most popular construction equipment loan and lease options you can access. Let’s take a detailed look at each one.

Equipment financing loans

Many financial institutions, such as banks and credit unions, offer easy equipment financing to small businesses.

There are 2 financial products you will find: equipment financing and heavy equipment financing (the latter is what construction businesses most commonly need). Make sure to find a lender that fits your needs.

These heavy equipment loans work similarly to other types of small business loans.

Some financial institutions may allow you to finance the machinery’s full cost, while others may require you to put a down payment—much like with a car or a house.

The financial institutions often won’t force you to put up separate collateral for this type of loan because the equipment will serve as the collateral.

This heavy equipment loan typically has interest rates between 8% and 30%. Few people would qualify for that low end of interest rates, though. You’ll need a credit score of at least 600 to qualify and be in business for at least one year.

  • Most financial institutions won’t accept ITINs on applications and won’t offer loans to people with no credit history.
  • Companies that offer equipment financing loans typically offer repayment terms of up to 10 years.
  • However, they won’t offer loans that stretch longer than the useful life of the equipment you are financing.

Lines of credit

A line of credit works similarly to a credit card. You’ll open an account with a financial institution with a set amount of credit available for you to use.

You can tap into this credit any time you need it.

You won’t get a full lump sum of money deposited into your bank with a line of credit.

The positive of this is that you don’t have to use the entire line of credit that’s extended to you.

While a line of credit may work for your heavy equipment financing, there are some downsides.

  • The first is the high-interest rate of between 15% to 25% (this rate will also depend on your credit score and history).
  • Depending on the financial institution, you can access from $10,000 to $1M with a line of credit, more than enough to finance the necessary machinery.
  • Most lenders who offer lines of credit will not accept ITINs on the application.

When you tap into your line of credit, the financial institution will require you to pay a minimum monthly payment. There is usually no set term on a line of credit.

They will continue to charge this interest rate as long as there is an outstanding balance.

Therefore, the longer it takes you to pay off the line of credit, the more interest they will charge you.

A line of credit is a great alternative if your company makes regular expenses that require external capital, but if you only want it to finance machinery once, it’s not a great option.

SBA loans

Loans offered through the Small Business Administration (SBA) are a good option for many small businesses.

The most popular program they offer is the SBA 7(a) loan program, which extends up to $5 million for use on financing heavy equipment.

Private financial institutions that work with the SBA offer heavy equipment loans.

The best equipment finance rates for these loans depend on your loan amount and length. Financial institutions cap all loans at an interest rate plus a maximum markup of 4.75%.

Heavy equipment loan rates range from a base rate plus 2.25% (for loans of $50,000 or more and a loan length of seven years or less) to a base rate plus 4.75% (for loans of $25,000 or less with a maturity of more than seven years).

This all means that your effective interest rate will likely be between 7.5% and 10% with today’s rates.

This is all subject to change, though, as rates can vary.

Each SBA loan comes with a 3.5% origination fee. Repayment terms for heavy equipment can be flexible for up to 10 years.

You must meet your business type and size requirements to qualify for an SBA loan.

You’ll need a Social Security number to apply, and you must have a solid credit history (640 and up).


There could be instances where leasing would be more beneficial than purchasing the equipment outright.

If the equipment you need doesn’t have a long lifespan, it may make more sense to lease it.

Heavy equipment lease also allows you to upgrade your equipment constantly, so you have the most up-to-date technology and features.

The downside, of course, is that you won’t own this equipment.

You’ll simply borrow it from the company you get the lease from for the length of the loan.

So, while the cost of a lease may be cheaper monthly than a heavy equipment financing purchase loan, the trade-off is you will have to give back the equipment at the end of the lease—or enter into a new lease.

And, in the long term, leasing might be more expensive than buying.

  • The typical lease period for construction equipment is roughly three to five years.
  • The interest rates will dramatically affect your monthly payment, ranging from 10% to 20%. This will depend on your credit score and history.
  • You’ll also need an SSN to apply.

Typically, for every $1,000 that the equipment is valued, the heavy equipment leasing costs roughly $40 to $60 per month.

So, for example, if the value of the equipment you’re leasing is $50,000, you would expect to pay between $2,000 and $3,000 per month.

With those types of monthly payments, you could very well finance the machinery you need with a loan (and it will end up being your property).

The Best Construction Equipment Financing Options

AmountRepayment termsAPRFeesCredit score neededAccept ITIN?
Camino Financial Microloan$5,100 – $35,00024-60 months31.55% – 54.90%6.99%Yes Yes
Equipment Financing Loans$10,000 – $350,000Up to 10 years8% – 30%*TBDYes No
Lines of CreditUp to $1,000,000Revolving15% – 25%*TBDYes No
SBA LoansUp to $5M10 years7.5% – 10%*Up to 3.5%Yes No
LeasesUp to $100,000Up to 10 years10% – 20%*TBDYes No

*New rates for 2022 may have been updated for financing marked with an asterisk.

Construction equipment is not only expensive but many times it also requires special training (or even a license) to operate.

Apply for a business loan today

How to Finance Heavy Equipment

Here are some suggestions for purchasing equipment:

  • Contact the bank you have your business accounts with. They may offer affordable and competitive financing options.
  • Consider getting an SBA loan, such as a CDC/504 loan. This type of loan is perfect for purchasing larger assets.
    This loan has 10 – 25 year repayment terms, rates between 10% and 20%, and a minimum credit score of 650.
    In addition, applicants must have an average net income of $5 million or less.
  • If you only plan to be in business for a short time, consider getting a loan to lease the heavy equipment.
  • Compare lenders to see which one offers the best rates and terms. Some may not require collateral or a downpayment, while others do.
  • Get preorders for work prior to getting a loan so you can start work as soon as you get the funding.

How to Get a Business Loan For Equipment

Getting a loan for a construction business or heavy equipment is similar to applying for a small business loan.

The following steps will help you to get credit approval.

  • First, make sure you have your financial documents in order, including a business plan, tax returns, financial statements, bank statements, a copy of your business license, and tax ID number.
  • Most construction equipment loans require higher credit scores because the machinery has a higher value and represents more risk for the lender.
  • If you have a bad score, you may not want to apply for a loan until you’ve saved enough to make a substantial down payment.
  • Know the lender requirements, such as the number of years in business, annual revenue, and your credit score. If you don’t meet a specific lender’s requirements, you probably won’t qualify.
  • Ask if the lender has any special requirements regarding the equipment itself.
  • Once you’re confident that you have everything you need, complete an application. In most situations, the lender will allow you to complete a paper application or submit your information online.
  • Wait to hear from the lender to see how they intend to proceed. They may need more information from you to move forward.
  • If the lender approves the loan, carefully review the loan agreement noting the specific terms. Once you agree to the loan terms, the lender will distribute the loan proceeds.

At Camino Financial, we have minimal requirements for machinery financing (for example, we don’t need you to show a business plan, and you can apply with ITIN).

Heavy equipment financing rates and terms

Heavy equipment businesses pay rates and terms based on their qualifications and a lender’s requirements.

Rates average between 2% to 20%, and you can repay it in terms of 1 to 25 years.

Lenders may require a minimum credit score or request a business’s financial history for a specific period.

What is Heavy or Construction Equipment Finance?

Heavy equipment finance is a type of financing that helps businesses acquire the equipment they need to operate. You can use this type of financing to purchase new or used equipment.

There are many benefits to getting heavy equipment finance, which include:

  • Access to the latest and best equipment: By financing your equipment purchases, you can ensure that you have the latest and most efficient equipment for your business. This can help you save money in the long run as you can get more work done with less downtime.
  • Preserve working capital: If you use cash to purchase your equipment, you may be short on working capital when you need it most. Financing your equipment can make your working capital available for other purposes.
  • Tax advantages: In some cases, the interest paid on heavy equipment finance can be tax deductible. This can help you save money on your taxes and improve your bottom line.
  • Flexible repayment terms: A business’s cash flow can structure the heavy equipment finance to fit your business’s cash flow. This means you can make smaller, more manageable payments that fit your budget.

Construction equipment financing can be a great way to get your business’s equipment to succeed.

How Heavy Equipment Financing Works

You borrow money from a lender to acquire large machineries such as bulldozers or forklifts and repay the principal amount plus interest and other fees the lender charges.

Collateral isn’t usually required since the lender could repossess the machinery if a borrower fails to repay the loan.

Some business owners get a loan as the best way to finance equipment than lease the equipment and pay for machinery that depreciates and loses value quickly.

Equipment Financing vs. Equipment Leasing

Equipment Financing

The borrower gets a loan to purchase equipment and makes payments over a specified term.

The lender normally places a lien or personal guarantee on the equipment until the borrower pays for the equipment in full.

Read more about the differences between leases vs. loans.

Equipment Leasing

The borrower pays the construction equipment owner to rent the equipment for a specific time detailed in the lease agreement.

After the leasing period ends, you return the equipment to the owner. Sometimes, you can renew the lease agreement or purchase the equipment from the owner.

Lease construction equipment is costly when the borrower doesn’t want or have the means to buy the equipment at the end of the lease period.

Pros and Cons of Equipment Financing


  • As you make timely payments, you build a credit history and score, which helps you qualify for future loans.
  • Allows you to obtain the necessary equipment to increase revenue and profit and take on more work.
  • You own the equipment.
  • Financing equipment is an unsecured loan because the equipment serves as collateral.


  • A more expensive option compared to having cash to buy equipment without paying interest and fees.
  • Cash flow can suffer unless you have sufficient income to offset regular payments.
  • You run the change of going out of business and ruining your credit if you can’t repay the loan.
  • The equipment depreciates, which decreases your assets.
  • Some lenders require a down payment.

It’s Time You Finance the Construction Equipment You Need

Construction companies often need to purchase new equipment, but they don’t have as many options for heavy equipment financing loans.

While some of the above options may work, they could come at a high cost, and not everyone will qualify.

Apply for a business loan today


Learn more about business

Best Credit Union for a Small Business

Investing in a Recession: Taking Advantage of an Economic Downturn

How to Get Financing for a Business: Best Ways in 2022




What is equipment finance?

It is a type of financing that covers equipment items you use to run your business.

How long can you finance heavy equipment?

Heavy equipment financing loans typically last from 3 to 10 years, with most requiring a 15% down payment.

Longer terms aren’t usually available since machinery depreciates quickly over time.

What heavy equipment makes the most money?

The highest-paid heavy equipment jobs include crane operators, construction equipment operators, riggers, front load drivers, backhoe operators, and winch truck drivers.

Also, a business owner must have a steady revenue stream and a favorable debt to income ratio to generate the most money.

How to start a heavy equipment business?

  1. Decide what type of service you want to provide
  2. Write a business plan
  3. Register your business
  4. Get the funding to purchase the heavy equipment and cover startup cost
  5. Get required licenses and insurance
  6. Hire employees unless you’re a solopreneur
  7. Market your business to acquire clients

Can I use a working capital loan for construction equipment purchase?

The use of working capital loans to purchase construction equipment will depend on the lending institution’s specific terms and conditions.

You can use a working capital loan for short-term financings, such as covering day-to-day expenses or meeting near-term liabilities. As such, a lending institution would likely not approve using a working capital loan to purchase construction equipment, which they would consider a long-term investment.

How long can you finance heavy equipment?

Generally, you can finance heavy equipment for anywhere from one to seven years. However, it’s important to note that the longer the term of your loan, the higher your interest rate will be. So, weighing your options and choosing the financing option that best suits your needs is essential.

What credit score do you need to buy heavy equipment?

A lender will ask you for a score of at least 650 to approve you for a loan to purchase heavy equipment.

Is it hard to get financed for equipment?

The simple answer is yes; it can be challenging to obtain financing for equipment. The primary reason for this is that lenders view equipment as riskier security than other types of collateral, such as real estate or vehicles. This is because equipment can often depreciate in value quickly, making it a less-than-ideal investment for lenders.

What is the interest rate on heavy equipment?

The interest rate on heavy equipment can vary depending on the type of equipment, the size of the loan, and the terms of the agreement. Generally speaking. However, interest rates on loans for heavy equipment will be higher than those for other types of loans.

Where to get easy equipment financing?

There are a few ways to get easy equipment financing.

You can try contacting your local bank or credit union and asking for a loan. You can also look online for companies that offer loans specifically for equipment purchases.

Another option is to lease the equipment you need. This can be especially helpful if you don’t have the full amount of money needed to purchase the equipment outright.

*Terms and requirements subject to change without notice.

Check if you
qualify for a loan