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Discover how heavy equipment loans work, what lenders require, and how to choose the right financing option for your construction business.
Whether you're laying concrete, hauling debris, or managing a full-scale site development project, having the right heavy equipment is non-negotiable. But let’s face it—bulldozers, loaders, and graders don’t come cheap. For many construction businesses, especially small and mid-sized firms, securing a heavy equipment loan is the smartest way to acquire what they need without sacrificing liquidity.
In this guide, we break down how heavy equipment loans work, what lenders expect, and how to position your business for fast, flexible approval.
A heavy equipment loan is a type of business financing used to purchase large, expensive machinery for construction or industrial use. These loans are typically secured by the equipment itself, which serves as collateral.
Unlike unsecured loans, this reduces risk for the lender—making it easier for construction firms with average credit or limited time in business to qualify.
Almost any essential construction machinery can be financed, including:
Some lenders also allow financing for used equipment, provided it meets age and condition requirements. Learn more about construction equipment classifications from RitchieSpecs to help determine what you need.
Financing heavy equipment offers a range of benefits for growing construction businesses:
These loans typically come with terms ranging from 24 to 84 months and can finance up to 100% of the equipment cost, depending on your credit profile.
While each lender is different, most evaluate the following:
Most lenders look for a minimum personal or business credit score of 600–650. Higher scores generally qualify for lower rates.
If your company has been operating for at least 6–12 months, you’ll be viewed more favorably. New businesses may still qualify with strong financials or a co-signer.
Expect to share your business’s gross monthly or annual revenue. Lenders want assurance that your cash flow can handle loan payments.
You’ll need a detailed invoice or quote, including make, model, year, and price. Used equipment may also require an inspection or valuation.
Need help organizing your documents? The SBA’s checklist for loan preparation is a solid place to start.
Here are a few questions to consider:
If your credit score is under 600, don’t panic. Many lenders still work with contractors who have less-than-perfect credit, especially if:
You may pay a higher interest rate, but with consistent on-time payments, it can be a stepping stone to better terms down the road.
Heavy equipment loans are designed for one thing: enabling growth. They help you meet contract demands, improve job site efficiency, and stay ahead of the competition—without compromising your business’s financial health.
If you're ready to finance bulldozers, excavators, or any other mission-critical machines, connect with the experts at National Legacy Capital Group. Their personalized approach, fast approvals, and flexible terms make it easier than ever to access the equipment you need.
Yes, some lenders offer full financing—especially if you have strong credit and business financials. Others may require a down payment of 5%–20%.
With complete documents, approval can happen in 1–2 business days. Funding may follow within 24–72 hours.
Since the equipment is collateral, the lender may repossess it. However, most lenders work with borrowers to find payment solutions first.
Yes—many lenders bundle multiple assets into one loan or allow you to open a line of credit specifically for equipment purchases.
