Heavy equipment financing for contractors
Quick answer
Heavy equipment financing lets you buy dozers, loaders, graders, and other big iron and pay over the machine's working life. The equipment secures the loan, so approval is easier and rates beat unsecured debt.
Expect rates from about 8.99%, terms of two to seven years, and approvals from the low 600s in credit. New and used machines both finance.
A new dozer can run well past $200,000. Paying that in cash to win one job leaves you exposed on the next three.
Financing spreads the cost so the machine pays for itself while it works. Because heavy equipment holds resale value and backs the loan, lenders treat it as solid collateral.
Key takeaways
- → The machine is the collateral, so heavy equipment is easier to finance than unsecured debt.
- → Rates start around 8.99%; terms run two to seven years based on age and your credit.
- → Used dozers and loaders finance fine, often up to 10–15 years old.
- → Section 179 can let you deduct the full price the year you put it to work.
What heavy equipment financing covers
The category spans the biggest machines on the jobsite. Bulldozers, wheel loaders, motor graders, backhoes, and large attachments all qualify.
Whether the machine is new from a dealer or used from an auction, a lender will usually finance it. The equipment's value and condition drive the terms.
Rates and terms
Rates for qualified buyers start around 8.99% and climb with risk — older machines, thinner credit, or shorter time in business push them up.
Terms track the asset's useful life, generally two to seven years. A new loader finances over a longer term than a ten-year-old one.
Down payments range from zero to 20%, lower for strong borrowers and newer equipment.
New, used, and bad-credit options
Used heavy equipment is where many contractors get the best value, and it finances on nearly the same terms as new when hours are low. See our guide to used equipment financing for how age changes the math.
If your credit is thin, a larger down payment offsets the risk — more in our bad-credit equipment financing guide.
Why finance instead of paying cash
Cash buys the machine but drains the reserves you need for payroll and materials between draws.
Financing keeps that cash working in the business while the equipment earns on the job. Pair it with the Section 179 deduction and a financed purchase can be a year-end tax win, covered in the main equipment financing guide.
Best heavy equipment lenders
Best lenders for heavy equipment financing
Best Overall — Same-Day Funding Across Six Loan Types Ad
Best Line of Credit for Cash Flow
Best Invoice Factoring for Contractors
To compare several lenders on one soft-pull application, eBoost Partners includes equipment inside its construction business financing.
Related guides
Equipment financing overview
Rates, lease vs buy, and Section 179 across all machine types.
Excavator financing
Finance new or used excavators.
Skid steer financing
Compact, easy-to-finance machines.
Used equipment financing
How age and hours affect terms.
Financing with bad credit
Options when your score is thin.
Loan calculator
Estimate your monthly payment.