Construction Equipment Financing
Construction businesses require specialized heavy equipment for excavation, grading, material handling, and site work. Financing options include traditional equipment loans, capital leases, and contractor-specific lending programs that understand seasonal cash flow and project-based revenue.
Popular Equipment for Construction
Excavators
Site excavation and foundation work
Typical Cost:
$80,000 - $500,000
Bulldozers
Grading and site preparation
Typical Cost:
$100,000 - $600,000
Dump Trucks
Material hauling and debris removal
Typical Cost:
$80,000 - $250,000
Backhoes
Trenching and utility work
Typical Cost:
$60,000 - $150,000
Skid Steer Loaders
Material handling and site work
Typical Cost:
$35,000 - $85,000
Cranes
Heavy lifting and material placement
Typical Cost:
$250,000 - $2,000,000
Financing Options for Construction
Equipment Loans
Traditional equipment loans offer fixed monthly payments and full ownership at the end of the term. Great for equipment you'll use long-term.
Equipment Leases
Leasing preserves cash flow with lower monthly payments. Perfect for equipment that may become outdated or need frequent upgrades.
SBA Loans
SBA 504 loans can be used for major equipment purchases with favorable terms. Visit SBACalculators.com for SBA loan calculations.
Why Finance Construction Equipment?
- ✓Preserve cash flow for operations and growth
- ✓Get equipment now, pay over time as it generates revenue
- ✓Take advantage of Section 179 tax deductions
- ✓Stay competitive with up-to-date equipment
- ✓Build business credit and financial history
Frequently Asked Questions
Common questions about Construction equipment financing
What credit score do I need for equipment financing?
Most lenders require a minimum credit score of 600-650 for equipment financing, though some specialized lenders work with scores as low as 550. Better credit scores (700+) typically qualify for lower interest rates and better terms. Business time in operation and cash flow are also important factors.
What is Section 179 and how does it work?
Section 179 is a U.S. tax code provision that allows businesses to deduct the full purchase price of qualifying equipment in the year it's purchased (up to $1,220,000 for 2024). This immediate deduction can significantly reduce your taxable income and effective equipment cost. Most business equipment qualifies, including machinery, vehicles, computers, and furniture.
What size excavator do I need?
Excavator size depends on your typical projects. Mini excavators (under 10,000 lbs) work well for residential and tight spaces. Mid-size excavators (20,000-40,000 lbs) handle most commercial construction. Large excavators (over 40,000 lbs) are for major earthmoving and mining. Consider reach, dig depth, and lifting capacity for your specific applications.
How much does a semi-truck down payment cost?
Semi-truck down payments typically range from $10,000 to $30,000 (10-20% of purchase price). Owner-operators with strong credit may qualify for no-money-down programs. Larger down payments reduce monthly payments and interest costs. Some lenders offer low down payment options specifically for first-time truck buyers.
What is the lifespan of an MRI machine?
MRI machines typically have a useful life of 10-15 years with proper maintenance. Technology advances may make older units less competitive before mechanical failure. Regular service contracts and upgrades (software, coils) extend useful life. High-volume imaging centers may upgrade more frequently to maintain competitive advantage and diagnostic capabilities.
How much down payment is required for equipment financing?
Down payments typically range from 10-20% of the equipment cost, though this varies by lender, equipment type, and creditworthiness. Some lenders offer 100% financing (no down payment) for well-qualified borrowers with strong credit and established businesses.
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