Best Construction and Heavy Equipment Financing Loans
Construction and heavy equipment loans help businesses get the gear they need without having to put all the cash down up front.
| Lender | Best for | Starting rate | Amount | Term | |
|---|---|---|---|---|---|
|
Streamlined business finances | 6.50% | Starting at $25k | Up to 60 months | |
|
Startup businesses | 8.00% (interest rate) |
$5k – $5M |
12 – 84 months | |
|
Trucking industry | Not specified |
$10k – $1M |
Up to 60 months | |
|
SBA loans | Not specified | Up to $12.4M | Up to 300 months | |
|
Low upfront costs | Not specified | Up to $150k | Up to 120 months | |
|
Same-day funding | 35.26% (APR) |
$5k – $400k |
Up to 24 months |
Best construction and heavy equipment financing lenders at a glance
Best for: Streamlined business finances – Bank of America
- Starting rate
- 6.50%
- Can be used for a wide range of heavy equipment, including commercial vehicles over 2.5 tons
- Bank of America Preferred Rewards customers may qualify for interest rate discounts
- Offers loans, leases and lines of credit
- Doesn’t publicly disclose minimum credit score requirements or interest rates
- Must apply in person or over the phone
- Accessing the 60-month loan term requires collateral
If you want to streamline your business finances, Bank of America offers many reasons to do all your business banking with them. They offer a wide variety of business products for businesses of all sizes. And borrowers who have an existing relationship with the bank may be able to lock in 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%.
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.
However, it doesn’t disclose much information about rates or eligibility criteria, making it difficult to tell if these loan options will be a good fit for your business. Plus, you can’t apply for these loans online. You’ll need to apply in person or over the phone.
In order to qualify, you’ll need to meet Bank of America’s criteria of:
- Minimum time in business: 2 years
- Minimum annual revenue: $250,000
- Minimum credit score: Not specified
Best for: Startup businesses – Taycor Financial
- Starting rate (interest rate)
- 8.00%
- Simple application that can be completed entirely online for loans up to $400,000
- No tax returns required for loans up to $400,000
- Requests for loans up to $150,000 may be approved in as little as two hours
- May require a personal guarantee
- May require first and last payments when signing equipment leases
- Origination and documentation fees may apply
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 to 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 $5,000 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, although you should be aware that origination and documentation fees may apply if you are approved for the loan.
In order to qualify, you’ll need to meet Taycor Financial’s criteria of:
- Minimum annual revenue: No specific minimum
- Minimum credit score: 550
- Minimum time in business: Not required
Best for: Truck financing – Commercial Fleet Financing
- Starting rate
- Not specified
640 or higher is preferred, though you may be able to get a loan with a lower score if you provide additional information
- Financing may be available to customers with prior liens, judgments or bankruptcies
- Loans may be approved in as little as 24 hours, with funding disbursed within two business days
- No down payment required for customers with excellent credit
- Doesn’t publicly disclose interest rates
- Borrowers with past credit problems will need to come up with a down payment
Commercial Fleet Financing (CFF) 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 (CFF) 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, you’ll need to meet Commercial Fleet Financing (CFF)’s criteria of:
- Minimum credit score: 640
- Minimum time in business: 2 years
- Minimum annual revenue: None
You must also supply proof that the vehicle or piece of equipment you’re financing is in good, working condition.
Best for: SBA Loans – U.S. Bank
- Starting rate
- Not specified
Terms are limited to 10 years for equipment loans, 25 years for real estate loans
- Multiple funding options available, including equipment financing and SBA loans
- Large loan amounts available (Up to $12,375,000)
- Short time in business requirement (6 months)
- Doesn’t publicly disclose annual revenue or minimum credit score requirements
- Must apply in person or over the phone
Those looking for a loan backed by the Small Business Administration (SBA) may want to consider U.S. Bank. Loan amounts extend up to a generous $12,375,000 for 504 loans. Plus, as an SBA Preferred Lender, this bank can 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.
Still, there’s no ability to apply online for an SBA loan with U.S. Bank. You must apply in person or over the phone. What’s more, the bank doesn’t disclose some of its qualifying criteria, which can make it difficult to tell if your business is a fit.
In order to qualify, you must meet U.S. Bank’s criteria of:
- Minimum time in business: 6 months
- Minimum annual revenue: Not specified
- Minimum credit score: Not specified
Best for: Low upfront costs – National Funding
- Starting rate
- Not specified
- No down payment required
- Submit an application and receive your funds in as little as 24 hours
- Financing options for a variety of credit profiles
- Doesn’t publicly disclose interest rates
- Lowest maximum loan amount on this list
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. Additionally, this lender accepts fair credit scores, making it an option if you need a bad credit business loan.
At the same time, though, National Funding’s equipment financing is capped at $150,000, which means borrowers looking to finance large, specialized equipment may need to look elsewhere. Plus, they don’t disclose their interest rates, which may make borrowing from them harder to budget around.
In order to qualify, you’ll need to meet National Funding’s criteria of:
- Minimum time in business: 6 months
- Minimum annual revenue: Not specified
- Minimum credit score: 580
In order to be eligible for funding, you must also provide National Funding with a quote from your equipment vendor.
Best for: Same-day funding – OnDeck
- Starting rate (APR)
- 35.26%
Minimum APR offered to at least 5% of customers (not the lowest rate offered)
- Online application available
- Same-day funding available
- Can help build business credit
- Loans require daily or weekly loan payments
- High interest rates can drive up the cost of borrowing
- Requires a UCC filing
If you need same-day funding, 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 two years. This is a relatively short repayment period, so you’ll need to budget around it. Also, OnDeck files a UCC lien against your business assets, which may make it more difficult to secure additional financing in the future.
In order to qualify, you’ll need to meet OnDeck’s criteria of:
- Minimum credit score: 625
- Minimum time in business: 12 months
- Minimum annual revenue: $100,000
What is heavy equipment financing?
Heavy equipment, also known as heavy machinery, refers to large, heavy-duty equipment used across multiple industries, including construction and farming.
Some common examples include:
- Cranes
- Excavators
- Forklifts
- Asphalt pavers
Heavy equipment financing can be used to help businesses get the machinery they need to operate. As a type of asset-based financing, the equipment itself acts as collateral to secure the loan.
Heavy equipment financing allows small business owners to spread out the cost of expensive equipment, freeing up capital for other business expenses.
Financing other types of equipment
Notably, other types of equipment that are smaller in size or don’t serve these industries, including vehicles, office equipment and items used in the food and beverage industry, can also be financed.
However, these items should be financed using traditional equipment financing loans, as they don’t require specific heavy equipment financing.Financing vs. leasing heavy equipment
Financing vs. leasing heavy equipment
When acquiring equipment, businesses often have two options: equipment financing or equipment leasing. Financing, also called an equipment loan, allows you to purchase the equipment and pay for it in monthly installments. Once the loan is paid off, your business owns the equipment and it becomes an asset on your company’s balance sheet.
Leasing is akin to renting the equipment for an extended timeframe. At the end of the lease term, your business may have the option to return the equipment, purchase it or renew the lease.
| Heavy equipment financing | Heavy equipment leasing | |
|---|---|---|
| Monthly payments | Higher | Lower |
| Monthly cost breakdown | Fixed principal plus interest | Fixed lease payment |
| Is depreciation tax deductible? | May be tax deductible | May be tax deductible depending on the lease type |
| Who owns the equipment? | The borrower | The lender |
| Can I trade in equipment or does it become outdated? | May become outdated | Can trade in |
Depreciation allows you to deduct the cost of equipment you purchase for your business on your tax return. Traditionally, this is done by deducting a portion of the cost over the course of several years.
However, the Section 179 deduction allows you to save time by taking an immediate deduction for the cost. Notably, you can only take this deduction for the tax year that the equipment was first placed in service and the amount you can deduct is limited by your wages and net business income. There is also a maximum deduction limit, which changes each year. For the 2025 tax year, it is $1,250,000.
Keep in mind that taxes vary by state, and this isn’t tax advice. If how equipment is taxed is a major factor in your decision to lease or buy, consult with a CPA to determine the best options for your business.
Pros and cons of heavy equipment financing
PROS
- 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
CONS
- 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
How to get a heavy equipment loan
To get a business loan for construction or equipment:
-
Assess your needs and budget
Before you begin the application process, take a moment to evaluate what kind of equipment you need and how it fits your business operations. Consider things like the lifespan of the equipment, how often you will use it and the return on investment you expect it to bring. -
Get the essential documents ready
Most lenders have requirements for business loans that include a range of documents to assess your financial health and the viability of the loan. -
Research and choose the best lender
Not all lenders are created equal. Research your options, including banks, credit unions and specialized equipment financing companies. Look for those that offer favorable terms, understand the construction industry and have positive reviews or customer testimonials.
LendingTree takes the guesswork out of comparison shopping. All you need to do is fill out a short interest form with information about your business, after which one of our experienced account executives will call to give you more information about construction and heavy equipment loan products available through our extensive network of partner lenders. -
Choose a lender and submit your application
Based on the information provided, your LendingTree account executive will make a personalized recommendation on the best funding options for you. If you decide to move forward with that lender, they will help you take the next steps in the application process.
Regardless of which lender you choose, the application process may involve filling out an online form or working directly with a loan officer to collect any required documentation. Be thorough and accurate when providing information, as discrepancies can delay or jeopardize your approval. -
Review terms and finalize the deal
If your application is approved, you’ll receive an offer detailing the loan’s terms, including interest rates, the repayment schedule and any associated fees. Review these terms carefully. If everything appears satisfactory, sign the loan agreement.
If you have any questions along the way, be sure to ask them before signing on the dotted line. While this may not be the case with every financial arrangement, your LendingTree account executive will stay by your side through your loan closing, ready to lend a hand if needed.
If you plan on financing used equipment with your equipment financing loan, you may have a few extra hoops to jump through during the loan approval process.
For instance, the lender may require an appraisal to come up with an appropriate valuation of the equipment. You may have to send in photos or other information, like serial numbers, so that the lender can determine how much it is worth.
After the appraisal, your loan-to-value (LTV) ratio may also be lower, meaning you can borrow less compared to what the equipment costs. Typical LTVs for used equipment range from 60% to 85% its cost, compared to up to 100% for new equipment.
Additionally, it’s important to note that you cannot alter the loan term if the equipment breaks or becomes obsolete.
Frequently asked questions
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.
Our methodology: How we chose the best heavy equipment loans
We reviewed more than a dozen lenders to find the best heavy equipment financing companies. To make our list, lenders must meet the following criteria:
- Minimum credit score: While the lenders on this list work with a variety of credit profiles, we prioritize lenders who have a minimum credit score requirement of 680 or lower.
- Rates and terms: We prioritize lenders with more competitive fixed rates, fewer fees and greater options for repayment terms, loan amounts and APR discounts.
- Repayment experience: We consider each lender’s reputation and business practices, favoring lenders that report to all major credit bureaus, offer reliable customer service and provide any unique perks to customers.