Construction and heavy equipment financing and leasing

Faster, easier small business financing with one simple application—no bank needed.

Applying is free and won’t impact your credit.

LOAN AMOUNT

$5,000- $5,000,000

TIME TO FUND

As Fast As 24 Hours

LOAN TERMS

1-10 Years

INTEREST RATE

As Low as 7.5%

Reviews from construction business owners.

Mitchell Wynne

OCTOBER 13, 2021


Great Company and customer service.

This was the best experience I have ever had dealing with working capital financing. Anthony Melhado Senior Funding Manager was great to work with. If he said it your could believe it because he was very truthful and down to earth to deal with. I have been in the Construction industry for over 30 years and have dealt with a lot of financing. Lendio and Anthony were great. Thanks again Anthony Melhad for your business and help on financing.

DANIEL TERRELONGE

SEPTEMBER 26, 2019


I’m forever grateful to Jeff for…

I’m forever grateful to Jeff for delivering the line of credit that my business needed. We are a small construction firm and this LOC now makes it possible for us to go after more work without having to worry about how to fund the projects. This is an amazing time for our company and a game changer. We can expand our operations. Jeff was very professional, knowledgeable and understanding of our needs. He delivered the line of credit in a quick turnaround. I couldn’t ask for a more favorable outcome. Thanks Jeff!

Lendio knows construction small businesses.

Whether you’re looking to expand your operations or upgrade your current machinery, financing construction equipment can be an affordable solution for your business. You can find a range of financing structures to choose from, allowing you to benefit from competitive interest rates with either a secured loan or lease.

Benefits of heavy equipment financing.

  1. It preserves your cash: Financing can help you keep cash on hand for other business needs. Instead of spending a big chunk of money, you can spread the cost over time.
  1. Stay Current: If you choose to lease your equipment, it will be easier to stay current with the latest equipment by upgrading when the lease is up.
  1. Tax Advantages: The equipment you purchase could be tax deductible under Section 179 of the U.S. tax code.
  1. Flexibility: Lastly, financing gives you flexibility. With access to the right equipment, you can bid on more jobs to grow your business.

Should I finance or lease my heavy equipment?

Leasing and financing heavy equipment are similar in that the person obtaining the equipment won’t need to purchase the machinery outright before using it. Instead, the lessee or borrower makes monthly payments on the equipment.

But financing and leasing also have their differences. For example, an equipment lease has a fixed term with a monthly rental fee that can’t be paid off early, while an equipment loan can be paid off early, with any remaining interest wiped clean.

Leasing also allows you to use the equipment itself as collateral, while you may need to provide additional collateral to secure equipment financing.

So, if your equipment has a long lifespan, it may be more cost-effective to finance it or get a lease-to-own option. If the equipment has a short lifespan, leasing may be the more cost-effective option.

There are multiple structures available for equipment leasing. Depending on the structure, at the end of the lease you may either own the equipment in full, exercise the option to purchase the equipment, or return the equipment.

Equipment financingEquipment leasing
Higher monthly payment.Lower monthly payment.
You own the equipment at the end of the term.The lender owns the equipment at the end of the term.
Usually requires a down payment.Does not usually require a down payment.
Could be less expensive than a lease.Could be more expensive than a loan.
Equipment may potentially become outdated by the end.Can upgrade equipment when the lease is over.

Estimate the cost of an equipment loan.

Ready to get the capital you need?

Take 15 minutes to find out what you qualify for from 75+ lenders.

Why Lendio?

Quick & easy

After completing a 15-minute application, you’ll get a fast funding decision and money in the bank in as little as 24 hours after choosing your loan.

Expertise to make the best choice

All Lendio applicants get a dedicated funding manager who understands their business and is available for personalized support throughout the entire application process.

Access to more financing options

Lendio’s network is filled with more than 75 lenders. That means you’re more likely to find an ideal match for your funding needs.

How our loan matching process works.

STEP
1

Fill out our simple application.

Answer just a few questions about your business to see which lending products you qualify for. We’ve partnered with over 75 lenders, allowing us to find the best option or your business.

STEP
2

We’ll connect you with a funding specialist.

One of our funding specialists will reach out to you to get to know your business better. Since every business is unique, we want to make sure we find the loan type that’s perfect for your needs.

STEP
3

Compare loan offers.

Compare different offers curated for your business. Select the capital amount and rate that will help take your business to the next level.

STEP
4

Get funded.

We work with lenders that can fund you fast. Once you’re approved, you’ll be able to access your capital in as little as 24 hours.

Other business loan options for construction equipment financing.

SBA Loan

SBA loans can be used to finance heavy equipment and related soft costs. There are several types of SBA loans designed for major asset purchases like equipment.

TERM LENGTH

10-30 Years
MAX LOAN AMOUNT

$5 million

Term Loan

Term loans provide a fixed sum repaid in fixed monthly payments. Term loans can be used to cover any business expense including equipment purchases.

TERM LENGTH

6 months-10 years
MAX LOAN AMOUNT

$2 million

Line of credit

A line of credit gives you ongoing access to funds you can borrow. So if you want to purchase some equipment now and wait to buy more as your projects grow, you can borrow only what you need at the time. And as you pay down your balance, your credit line is replenished and you can borrow more as needed.

TERM LENGTH

1-2 years
MAX LOAN AMOUNT

Up to $500,000

FAQs

Heavy equipment financing is a type of loan where a lender or other financier provides funding for the borrower to purchase heavy equipment, like bulldozers. Lenders offer these loans for small businesses in the construction industry that either don’t want to use their working capital to buy the equipment up front or can’t pay for the equipment in cash. The borrower then repays the loan with interest over a specified time period. In heavy equipment financing arrangements, the heavy equipment itself usually serves as collateral for the funding. In some cases, additional collateral may be required to secure the financing.

  

Each lender wants to feel confident that your construction company can repay the loan, and each lender’s requirements will vary. They may look at your business’ cash flow, credit score, and time in business, along with the type of equipment you want to finance.

 

Heavy equipment financing can be used for any type of equipment or machinery your company may need, including bulldozers, pavers, lifts, compactors, and trucks.

Heavy equipment loans are not as difficult to qualify for as some other forms of financing, like a traditional term loan from a bank. If you have been in business for several years and have a credit score of 500 or above, you have a great chance of qualifying. The higher your credit score and the longer you’ve been in business, the higher the probability that you will qualify and get a favorable rate and term. If your business is very new, you might still qualify for heavy equipment financing if you have a higher credit score.

Generally, heavy equipment financing has repayment terms that are linked to the expected lifespan of the equipment being financed. This is so the borrower isn’t paying a loan on equipment that can no longer be used. Expect heavy equipment loans to have repayment periods from one to five years, with some lenders offering terms up to 10 years.

This will depend on your lender. Some lenders will accept credit scores that are as low as 500, while others will only accept good credit scores (690 or higher).

The machinery being financed typically serves as collateral on a construction or heavy equipment loan. Depending on the lender and your qualifications, you can get a loan that is up to 100% of the value of the equipment that you are looking to buy. After that, you’ll repay your loan with interest.

8 out of 10 Lendio employees* or their families own a small business.

*based on 136 Lendio employees who responded to an internal poll

Compare loan options from multiple funders.

Applying is free and won’t impact your credit.
Talk to a rep at (855) 853-6346
Mon-Fri 7:30am-5pm MST