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Explore smart financing options for excavators, including loans, leases, and business lines of credit. Learn how small contractors can scale with flexible terms.
Excavators are the workhorses of the construction industry—handling everything from trenching and site prep to demolition and material handling. But for many small and mid-sized contractors, owning or upgrading one isn’t as simple as signing a check. The price tag for even a mid-sized excavator can reach well over $100,000.
That’s where flexible financing comes into play. Whether you're acquiring your first excavator or replacing aging machinery, the right financing strategy can help you scale operations, preserve cash flow, and bid on bigger jobs with confidence.
A reliable excavator improves productivity, reduces labor costs, and positions your business for more complex and higher-paying projects. But outright purchases can eat into working capital that’s better spent on materials, payroll, or unexpected repairs.
According to Equipment World, demand for compact and mid-size excavators has surged as contractors seek versatile equipment that offers strong ROI.
That makes financing not just a practical solution—but a strategic one.
With an equipment loan, you borrow a specific amount to purchase the excavator. The equipment serves as collateral, reducing the risk for the lender and increasing your chances of approval.
Best for: Contractors who plan to keep the excavator long-term and want to build equity in their equipment.
Leasing offers flexibility, particularly for contractors who frequently upgrade machinery or need access to specialized excavators for short-term projects.
For a full breakdown of leasing structures, see this guide from Investopedia.
Best for: Contractors who prioritize lower upfront costs or regularly rotate equipment.
If you want on-demand access to funds for repairs, attachments, or even down payments on used equipment, a business line of credit offers unmatched flexibility.
Best for: Contractors who need occasional access to funds or plan staggered purchases over time.
Approval depends on a few key factors:
The SBA’s loan preparation checklist can help you get organized before applying.
You’re not limited to a single style of machine. Most lenders provide financing for:
Financing is typically available for both new and pre-owned models, provided they meet condition and age criteria.
If you purchase (not lease) the excavator, you may qualify for the IRS Section 179 Deduction, allowing you to deduct the full cost of the equipment in the year it’s placed in service.
Leased equipment often allows you to deduct monthly payments as an operational expense, which can also reduce your taxable income.
Whether you’re prepping foundations or clearing land, your excavator is central to getting the job done. Financing gives you access to these essential tools—without forcing you to compromise growth, liquidity, or opportunity.
Ready to explore financing solutions tailored to your needs? Reach out to National Legacy Capital Group to see how fast, flexible options can power your next phase of growth.
Yes—many lenders allow financing for used excavators, especially those under 10 years old or from reputable manufacturers.
In many cases, approval takes less than 24 hours, with funding within 1–3 business days.
Startups can often lease equipment or secure financing with strong personal credit or a co-signer.
The excavator itself typically serves as collateral. No additional business or personal assets are usually required.
