Construction and Heavy Equipment Financing

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

Applying is free and won’t impact your credit.

Reviews From Construction Business Owners

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 different financing structures to choose from, allowing you to benefit from competitive interest rates with either a secured loan or lease.

Lendio is a strong partner when searching for financing for construction equipment. We work with construction companies of all sizes and connect you with the right financing company for your needs. From low rates to no-down payment equipment business loans, we make sure your heavy equipment financing holds the perfect balance of enabling growth without overextending your company’s financials.

Lendio is no stranger to funding for construction operations and the type of capital required to grow a profit-driven enterprise. Our network of preferred lenders makes it easy to submit a single application and receive multiple financing options to compare.

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.

Types of Business Loans For Heavy Equipment

Asset or Revenue-Based Financing

Consider getting an advance against assets or future revenue that has yet to be paid. You typically get a lump sum up front that you can  use for a down payment on heavy equipment, delivery fees, or training costs. Once that revenue comes in, you’ll repay the advance as well as a lender fee.

TERM LENGTH

1-15 months
MAX LOAN AMOUNT

Up to 90% of receivables

Debt Financing

Both online term loans and SBA loans can be used to finance heavy equipment and related soft costs. Online loans come with the fastest turnaround times and easiest application processes, while there are several types of SBA loans designed for major asset purchases like equipment.

TERM LENGTH

5-30 years
MAX LOAN AMOUNT

$5 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

Equipment Financing

Using an equipment loan for your purchase comes with competitive rates because the equipment itself is used as collateral. You can borrow large amounts and many lenders even allow you to finance soft costs like taxes and delivery.

TERM LENGTH

1-5 years
MAX LOAN AMOUNT

$5 million

Additional Resources

Equipment Financing with Bad Credit

Construction Accounting: An Introductory Guide

How to Get Construction Equipment Financing

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.

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 leasee 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.

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.

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 620 or above, you have great chances 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.

Many banks offer equipment loans for small businesses. If your business has a favorite bank, it is worth seeing if they offer equipment financing. But don’t be afraid to research your options beyond your neighborhood bank branch. You can easily explore the realm of online-only banks or alternative financers with an internet connection. Some of these options might offer better terms than you can find at your local bank branch. The smart thing to do is to research both banks and alternative financers, so you can contrast, compare, and ultimately, end up with the best possible financing option for your business.

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

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

Quickly Compare Loan Offers from Multiple Lenders

Applying is free and won’t impact your credit

Talk to a rep at (855) 853-6346
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