Heavy equipment financing allows businesses to purchase essential equipment without paying the full cost upfront. The business gets a loan to buy the equipment and agrees to a structured repayment plan, typically involving monthly installments.
From $25,000
7.00%
60 months
Bank of America offers unusually low starting rates, and borrowers may be able to lock in even lower rates by participating in the bank’s Preferred Rewards for Business program, which rewards loyal customers with rate discounts of 0.25% to 0.75%.
To become a Preferred Rewards member, you’ll need to have a business checking account with Bank of America. The specific discount you receive will depend on your membership tier, which is determined by your account balance.
The bank also stands out for its versatile equipment financing options, offering traditional loans, leases and lines of credit, providing businesses with multiple pathways to finance essential equipment.
Keep in mind that not all borrowers qualify for the lowest rates — your credit score, business history and loan terms are a few of the things that affect your rates.
In order to qualify, you’ll need to meet Bank of America’s criteria of:
Bank of America doesn’t disclose its minimum credit score requirements. Apply online or contact the lender directly to determine if your business qualifies for a loan.
From $100,000
Not disclosed
Not disclosed
With loan amounts starting at $100,000, Wells Fargo Bank is a reliable choice for well-established construction businesses. What makes the bank stand out is its understanding of the varied cash flow patterns in the construction industry. By providing flexible financing options, including balloon or seasonal payments and even sale and equipment leaseback transactions, it caters to the construction industry’s unique needs.
Additionally, Wells Fargo Bank isn’t just a financial lender — its Equipment Seller department allows businesses to purchase both new and used equipment and industrial gear.
Wells Fargo Bank does not disclose the minimum credit score, time in business or annual revenue requirements you’ll need to qualify for heavy equipment financing. Apply online or contact the lender directly to find out if your business is eligible.
$500 to $5,000,000
7.90%
84 months
Getting financing can be tricky for startups and early-stage construction businesses, as many lenders require you to be in business for at least two years to qualify for a loan or lease. But Taycor Financial is an ally for startup businesses, offering a new business program for companies that have been operating for less than two years.
With loan amounts ranging from as little as $500 to up to $5,000,000, the lender offers heavy equipment financing for businesses at every stage of development. Prospective borrowers can apply for up to $400,000 with a simple online application, though loans over $400,000 may require additional documentation, including tax returns and financial statements.
Though Taycor Financial is open to financing startups, the lender does not disclose its minimum credit score or annual revenue requirements. For more information on how to qualify, apply online or contact the lender directly.
$10,000 to $1,000,000
Not disclosed
60 months
Commercial Fleet Financing is best known for offering semi-truck and trailer financing, though the lender also offers construction equipment financing. With loans ranging from $10,000 to $1,000,000 and options for term lengths, payment structures and loan and lease programs, Commercial Fleet Financing tailors funding to the unique demands of the trucking and construction industries.
They understand the challenges business owners face in this sector, and even those with prior liens, judgments and bankruptcies may qualify for financing. However, a down payment may be required for borrowers with bad credit.
In order to qualify for a construction equipment loan, you’ll need to meet Commercial Fleet Financing’s criteria of:
You’ll also need to meet the company’s annual revenue requirements, which are not publicly available. Apply online or contact Commercial Fleet Financing directly to determine if your business qualifies for heavy equipment financing.
Up to $2,500,000
Not disclosed
Up to 60+ months
U.S. Bank offers equipment financing up to $2,500,000, but if you don’t meet the requirements for this type of financing, you may be able to work with the lender to secure an SBA loan instead. The U.S. Small Business Association (SBA) partners with lenders to offer loans to small businesses that might not otherwise qualify for financing.
As an SBA Preferred Lender, U.S. Bank has a streamlined application process. This may make it faster and easier to get an SBA loan — a perk that is particularly valuable, as SBA loans can take two or three months to process with other lenders.
U.S. Bank doesn’t disclose minimum credit score, time in business or annual revenue requirements. Apply online or contact the lender directly to determine if your business qualifies for equipment financing or an SBA loan.
Up to $150,000
Not disclosed
120 months
With a low-payment guarantee on equipment leases and no down payment requirement on equipment loans, National Funding offers relatively low upfront and ongoing costs for funding.
National Funding’s equipment financing is capped at $150,000, which means borrowers looking to finance large, specialized equipment may need to look elsewhere. But if your equipment needs are less expensive, National Funding may give you the financing you need while keeping costs low.
In order to qualify, you’ll need to meet National Funding’s criteria of:
Although National Funding does not disclose the credit score needed to qualify for heavy equipment loans, the lender is willing to work with borrowers with a variety of credit profiles. For those with bad credit, loan decisions will be based on time in business and annual gross sales.
$5,000 to $250,000
27.30% Minimum APR offered to at least 5% of customers (not the lowest rate offered)
24 months
If you need fast funds, OnDeck might be the lender for you. OnDeck is an online small business lender offering term loans and lines of credit, both of which can be used to purchase business equipment. What makes OnDeck unique is its funding speed. While lines of credit can be funded instantly, term loans may be funded the same day in certain locations.
However, these funds will need to be repaid within 24 months. This is a relatively short repayment period, meaning OnDeck’s financing options are best suited for borrowers with short-term needs. If your cash flow is low but you expect it to increase in the near future, OnDeck may provide the capital you need to purchase essential equipment.
And if you’re able to pay off your loan early, you may be able to get any remaining interest waived without any fees or penalties. Check your loan details before signing to see if you’re eligible for early repayment.
In order to qualify, you’ll need to meet OnDeck’s criteria of:
| Pros | Cons |
|---|---|
| Access advanced equipment you may not be able to afford out of pocket Predictable, recurring payments free up cash flow for other business expenses Potential tax write-offs can help you save on your heavy equipment | May require a large down payment Some lenders may require additional collateral or a personal guarantee to secure the loan Equipment may become outdated and need to be replaced |
To get a business loan for construction or equipment:
Heavy equipment financing allows businesses to purchase essential equipment without paying the full cost upfront. The business gets a loan to buy the equipment and agrees to a structured repayment plan, typically involving monthly installments.
The credit score you need to finance heavy equipment varies depending on the lender and the loan type.
A higher credit score will generally allow you to secure more favorable loan terms and interest rates, though some lenders may offer equipment loans for bad credit.
If you have poor credit, lenders may be more open to considering your application if you make a down payment.
The length of a heavy equipment loan varies by lender. Many lenders offer loan terms up to five years. However, the SBA’s 504 loan program also provides loans for 10, 20 or 25 years.
Whether you should finance construction and other heavy equipment depends on your business’s financial situation, operational needs and long-term goals. To make the right choice for your business, weigh the benefits of owning the equipment against the costs and commitment that come with a financing agreement.