Disclosure: Our content isn't financial advice. Do your due diligence and speak to your financial advisor before making any investment decision. We may earn money from products reviewed. (Learn more)
If you’re looking to finance heavy equipment in the U.S., there are a few ways to go about it that could make things easier and more effective for your business.
First things first – know what you need. Do you have your eye on a shiny new excavator, or are you considering a reliable used forklift? It’s essential to figure out exactly what kind of equipment you need and what it will cost. This can influence what financing options are best for you.
Here’s where you can start looking for financing:
- Your local bank or credit union: If you already have a relationship with a bank, check in with them. Many big-name banks, like Bank of America and Wells Fargo, offer equipment loans with decent rates. Plus, they sometimes finance more than just the cost of the equipment, covering things like installation and taxes.
- Swoop Funding: this company specializes in heavy equipment financing and can provide large loans as well. They are quick to fund (24h to 72h in most cases) and accept bad credit scores (however the rates won’t be ideal if your credit score isn’t good)
- Online lenders and alternative financing: If you’re after a quicker and less traditional route, companies like National Funding or Balboa Capital could be a great fit. These places often have a simpler, faster approval process and may be more flexible if your credit score isn’t perfect. Some can approve loans as fast as 24 hours and offer up to $150,000.
- Manufacturer financing: Planning to buy directly from a company like Caterpillar or John Deere? These manufacturers often offer their own financing plans. It’s great because they understand the business inside-out and might be more understanding of seasonal cash flow ups and downs.
- SBA loans: If you’re looking for bigger funding with competitive rates, the Small Business Administration (SBA) could be a lifesaver. Their 504 loan program can help you secure up to $5.5 million specifically for equipment, with relatively low-interest rates. Keep in mind, it may take a bit more time and paperwork.
Get Your Docs in Order:
Before you apply, gather your business financials, tax returns, and recent bank statements. Lenders also want to check your credit score—both personal and business. The better it is, the more favorable terms you’ll get.
Finding the right financing option might take a little research, but it’ll pay off when you’re ready to power up your business with the equipment you need.
Heavy Equipment Financing FAQs
1. What is heavy equipment financing? Heavy equipment financing is a type of loan or lease specifically designed for businesses to purchase or lease machinery and equipment necessary for operations. This can include construction equipment, agricultural machinery, trailers, and more.
2. Who are the top heavy equipment financing companies? Some well-known heavy equipment financing companies include Bank of America, Wells Fargo, National Funding, Balboa Capital, John Deere Financial, and First Capital Business Finance.
3. What are typical heavy equipment financing rates? Interest rates for heavy equipment financing can range from 5% to 30%, depending on factors like credit score, loan term, type of equipment, and lender. Commercial banks typically offer the most competitive rates.
4. Can I finance used heavy equipment? Yes, many lenders offer financing for used heavy equipment. The terms may vary based on the age and condition of the equipment.
5. Is heavy equipment financing available for personal use? While most financing is for business purposes, some lenders may provide personal loans for heavy equipment, though terms and interest rates might differ significantly.
6. Can I get heavy equipment financing with bad credit? Yes, there are lenders specializing in bad credit heavy equipment financing. However, interest rates may be higher, and down payments could be larger to offset the risk.
7. How can I find heavy equipment financing near me? To find local heavy equipment financing, you can search for regional banks, credit unions, and specialized lenders in your area. Online directories and reviews can also help identify reputable options nearby.
8. What is a heavy equipment financing calculator? A financing calculator helps estimate the monthly payments and total cost of financing based on input factors like loan amount, interest rate, and loan term.
9. What are the best options for heavy equipment financing? The best option depends on your business’s financial situation. Traditional banks often provide lower rates but stricter approval criteria. Alternative lenders offer quicker approvals with potentially higher rates. Manufacturer financing can be a great option for industry-specific terms.
10. How can I get financing for heavy equipment in Canada? In Canada, you can seek financing through major banks like RBC and BMO, specialized lenders, or local credit unions. Options are available even for used equipment, and bad credit financing can be found, especially in provinces like Alberta, Saskatchewan, and British Columbia.
11. Are there specific lenders for bad credit heavy equipment financing in Canada? Yes, there are lenders that cater to those with bad credit in provinces like Alberta, BC, Manitoba, and Saskatchewan. These include alternative lenders who may offer more flexible terms but at higher rates.
12. What does in-house financing for heavy equipment mean? In-house financing is when the equipment seller, such as a manufacturer or dealership, provides direct financing to the buyer. This can simplify the process and offer tailored payment plans.
13. What are the typical terms for heavy equipment financing? Loan terms can range from 2 to 7 years, depending on the lender and the type of equipment. The age and condition of the equipment may also affect the term length.
14. Can I finance heavy equipment if I live in Canada, the Philippines or Saudi Arabia? Yes, equipment loans are available in international markets, including Canada the Philippines and Saudi Arabia. Local banks, specialized asset-based lenders, and manufacturer financing are viable sources.
15. Is it possible to finance heavy equipment repairs? Some lenders offer financing for repair and maintenance costs associated with heavy equipment, especially if it’s critical for keeping business operations running.
16. Can I get financing for heavy equipment trailers? Yes, trailers are considered part of heavy equipment, and many lenders offer specific financing programs for them.
17. Are there flexible heavy equipment financing options? Yes, flexible options include deferred payment plans, seasonal payment structures, and varying down payment requirements to fit different cash flow scenarios.
18. How do I get financing approval for heavy equipment? To increase your chances of approval, provide detailed financial statements, tax returns, and bank statements. Having a solid business plan and understanding your credit score are also essential.
19. Are there options for small businesses or start-ups? Yes, many lenders cater to small businesses and start-ups, although interest rates may be higher, and collateral might be required.
20. What should I know about heavy equipment financing in Alberta or BC? In Alberta and BC, you can find financing from both large financial institutions and smaller lenders. These regions have local services that cater to businesses in the construction, mining, and agricultural industries.
21. Can I get heavy equipment financing from Wells Fargo? Yes, Wells Fargo is one of the major banks offering heavy equipment financing in the U.S. They provide loans for new and used equipment with competitive rates.
22. What is commercial heavy equipment financing? Commercial heavy equipment financing is specifically geared towards businesses that need funding to buy or lease equipment for operations, including large machinery used in construction, agriculture, and more.
23. Are there financing options for bad credit in Calgary? Yes, certain lenders in Calgary and other parts of Canada offer bad credit financing for heavy equipment, though interest rates and down payments may be higher.
24. What is the role of a heavy equipment financing broker? A broker can help you find the best financing options by connecting you with various lenders and negotiating terms on your behalf.
25. How do heavy equipment financing terms compare to other loans? Heavy equipment loans often have longer terms than regular business loans, ranging from 2 to 7 years, depending on the equipment’s type and age.
Amine Rahal is an entrepreneur and investor. He is passionate about alternative investments, Bitcoin, precious metals and startups. He enjoys covering US politics, retirement investing, alternative investing and geopolitics.
