10 Best Heavy Equipment Financing Loans in America for Businesses & Startups

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In recent years, various news reports have been claiming that the US heavy equipment industry is about to skyrocket. Today, this prediction has been realized; the heavy construction equipment market is growing with a CAGR of 5.2%. Many businesses looking to break into this industry require loans. That’s why a heavy equipment loan has become the need of the hour.

These loans allow you to acquire heavy machinery and equipment without paying substantial upfront payments. This type of financing is helpful in industries like construction, agriculture, manufacturing, etc., where large, expensive machinery is essential for business operations.

Types of Heavy Equipment Available

To start, let’s look into who can use heavy equipment loans. You may need this option if you happen to be:

• Builders and contractors in the construction sector
• Manufacturers who need heavy machinery for production processes, e.g., conveyor systems and packaging machines
• Farmers and agricultural enterprises use heavy equipment like tractors and irrigation systems for more productivity
• Companies in mining & forestry operations
• Logistics and shipping firms expanding their fleet of:
  • Trucks
  • Cranes
  • Forklifts

You can acquire the following pieces of equipment with these financing options:

• Construction equipment, such as bulldozers, excavators, cranes, backhoes, loaders, etc.
• Agricultural equipment, such as tractors, combine harvesters, etc.
• Mining equipment like dump trucks, drilling machines, etc.
• Material handling equipment like forklifts, conveyor systems, etc.
• Road construction equipment like asphalt pavers, compactors, etc.
• Forestry equipment, such as skidders and feller bunchers, used in logging operations

Top 10 Best Heavy Equipment Loans in the US

If you’re looking to make heavy equipment purchases, here are some options to consider:

1.   Swoop Funding

Swoop Funding offers heavy equipment loans for both commercial and industrial companies. With competitive rates and flexible terms, this lender makes it easier for you to acquire the right equipment to resume your business operations.

2.   Business Financial Consulting

This lender doesn’t discriminate whether your credit is good or bad or if your business is old or just a budding startup. You can get $60 million in funding in 2 weeks. If you’re in a hurry and need immediate access to heavy equipment, getting half a million bucks will take just 2 to 3 days.

3.   Maxim Commercial Capital

This lender works with startups, offering up to $250k in funding so your business can purchase heavy equipment affordably. With up to 65% LTV and no FICO minimums, you can term repayment terms of 60 months at max.

4.   10-4 Financing

With 10-4 Financing, you can acquire heavy equipment with no FICO minimums. Even bad credit won’t stop this lender from considering your application. You can get up to $1.5 million in funding, with $250 available in a very short amount of time.

5.   Clear Skies Capital

The very tagline of the Clear Skies Capital Company is that they offer heavy equipment loans to values up to $1.5 million. The approval process takes about 4 hours, and you’re funded 24 hours after getting approved.

6.   Oakmont Capital Services

This lender doesn’t specialize in heavy equipment financing but does offer virtual financing options powered by no down payment requirements. Your term is based on credit approval, and delayed payment options make Oakmont a good lender.

7.   Credit Suite

This Tampa-based business lets you avail yourself of up to $10 million in heavy equipment financing with a simple application. That equipment itself will be your collateral, and the funding will come to you in as little as 2 weeks.

8.   Volvo Construction Equipment

Volvo is ideal for specializing in heavy equipment loan options. For 48 months, you’ll get a rate of 0%. For 60 months, the rate increases to barely 1.5%. This lender also offers unique lease options like $1,000 per month for heavy equipment purchases.

9.   HIL Financial

At HIL Financial, US-based businesses can easily apply for a heavy equipment loan. They have customized payment plans with a wide range of equipment solutions to choose from!

10.               Advance Point Capital

This business has funded 7,500+ businesses, spending 375+ million by offering clients some of the lowest interest rates in the heavy equipment loaning industry. They also offer you a same-day approval process.

Types of Heavy Equipment Financing Options

The national heavy equipment industry today is growing by 6.8% due to rapid urbanization and unchecked infrastructure spending. So, if you want to take out a heavy equipment loan, consider these options besides loaning and leasing:

• Chattel Mortgages: You secure this loan with movable business property, such as your heavy equipment. This way, your business can retain ownership rights, acquire the necessary construction equipment, and keep making payments.
• Vendor Financing: This option often includes promotional rates or deferred payment options. Equipment manufacturers or dealers will offer this loan directly. This way, your logging business can finance a purchase directly through the vendor.
• Working Capital Loans: This option isn’t specifically for equipment. However, these loans can provide businesses with additional funds to cover their operational costs. Meanwhile, you can invest in new construction machinery.

Heavy Equipment Loan: Are You Eligible?

Have you considered construction equipment loans before? If you’ve checked the eligibility of your business for these loans, then you more or less stand eligible to receive loans for heavy equipment purchases as well. Here’s how you can verify your eligibility:

Eligibility Criteria

• You need to have a credit score of 600, at least! However, some lenders are okay with lending money to businesses that have a score of 500 to 575.
• The age of your business – like always – plays a key role in securing you a heavy equipment loan. Lenders prefer working with a business that’s been operational for the last 12 months.
• You should have an annual revenue of at least half a million dollars. That’s how you can qualify for larger loans.
• Some lenders require a down payment of about 10% to 20% of the cost of the heavy equipment in question. If you can afford to pay this amount, your chances of getting a loan increase.
• Your company’s financial health and debt status are very important factors. That’s why lenders ask for necessary documentation, such as:
  • Balance sheets
  • Financial statements
  • Profit and loss statements
• A solid business plan can enhance your startup’s chances of securing a loan since you can demonstrate how this equipment will contribute to revenue generation.

Application Process

• Gather all the necessary documents, including these:
  • Personal/business bank statements
  • Tax returns
  • Financial statements
  • Proof of down payment
  • Equipment quote/invoice
• Identify potential lenders that fit your financing needs; don’t forget to look into their eligibility criteria and terms offered.
• Apply for heavy equipment loans and wait for the approval process to take its time.
• Review terms and conditions and get financing to buy heavy machinery.

Financing Heavy Equipment: Pros and Cons

Choosing the Right Lender for Heavy Equipment Financing

Did you know that the three largest heavy equipment rental companies in the US made a lot of profit and saw revenue growth in the 1^st quarter of 2024? However, not all lenders are the same. Here’s how you should look into which lender works for you:

• Check the interest rates of different lenders and see who offers the lowest rate based on your credit history.
• Check the maximum amount your lender offers you based on the cost of the heavy equipment under consideration.
• Look into the repayment terms offered by that lender (these terms usually range from 12 months to 7 years).
• Watch out for hidden costs like:
  • Origination fees
  • Prepayment penalties
• Prefer working with lenders who offer fast funding options, especially within 24 hours or less.
• Check the lender’s credit score requirements and consider working with those who specialize in heavy equipment loan options.

If you need help understanding which heavy equipment financing option is better for you, we provide amazing reviews of different lenders and their services.

Get in touch with Sophisticated Investor to learn more about your loan/leasing options in the United States. Take your building company to new heights by purchasing or leasing the ideal heavy equipment to take your business to new heights.

Heavy Equipment Financing: FAQs

Q. What are the typical repayment terms for heavy equipment loans?

1. Repayment terms depend on the lender, after all. Normally, they can be 12 to 84 months. The type of machinery being financed and the lender’s policies determine the period of repayment, too.

Q. Are there any tax benefits associated with heavy equipment financing?

1. Yes, you get tax benefits due to a heavy equipment loan. As per Section 179 of the IRS, you can deduct the full purchase price of qualifying equipment in the same year it’s placed in service.

Q. What makes leasing and buying heavy machinery different from each other? Leasing means you’ll pay lower monthly payments and avoid down payments as well. However, leasing doesn’t give you ownership rights of that equipment. If you’re buying that item via a loan, you can own it after continuously making large payments.