Choosing the Right Heavy Equipment Financing (2023)

Heavy Equipment Financing

Tips for Choosing the Right Heavy Equipment Financing (2023)


Looking for top-quality heavy equipment financing can be frustrating, especially when dealing with a tight budget.

You may feel like it’s impossible to secure financing that meets your specific needs. Have you ever gone through a lending process that left you feeling like you’ve been robbed?

As a business owner, you deserve to have the best financing options available without breaking the bank. It’s time to stop selling yourself short and take control of your business’s financial future.

Let’s get started and look at some of the heavy equipment financing options available.

Is There a Best Heavy Equipment Financing Option?

Heavy equipment financing is a complex and often confusing process. There are many options available. From traditional bank loans to dealership financing, each comes with its own set of drawbacks and limitations.

In this post, we’ll explore the shortcomings of conventional approaches to heavy equipment financing while examining some of the newer methods, including online and third-party lenders.

Heavy Equipment Financing: The Traditional ApproachHeavy Equipment Financing Tips

The traditional approach to heavy equipment financing has typically involved obtaining a loan from a bank. This process is notoriously slow, requiring extensive documentation and multiple rounds of approvals.

Even after all of this effort, there is no guarantee that the loan will be approved. Moreover, if it is approved, there can be significant limitations and drawbacks. Especially when it comes to heavy equipment financing rates. For instance, bank loans that utilize a traditional approach can come with additional bank covenants and collateral tied to the loan, not just the equipment itself.

Dealership financing is another traditional approach to heavy equipment financing. This process allows a borrower to work directly with the dealership to obtain financing. While this approach may be faster than a traditional bank loan, it comes with its own set of drawbacks.

  • First, borrowers must have a good credit score (think high 600’s and up) to be considered for financing at a dealership.
  • Second, financial reports are often required for approval, which can slow down the sales process.
  • Lastly, there can be be lending limitations on used equipment.

Given the many limitations and drawbacks of these conventional approaches to heavy equipment financing, it’s not surprising that many borrowers are turning to alternative methods.

Online and Third-Party Heavy Equipment Financing Companies

Online third-party lenders are becoming an increasingly popular option for heavy equipment financing. These lenders often have many equipment financing options available.

Online Heavy Equipment Financing Companies

One of the main benefits of these lenders is the speed and convenience with which they can provide financing (oftentimes within 24-48 hours). With online lenders, borrowers can complete the application process online, from the comfort of their own home or office. This can save borrowers a significant amount of time and effort compared to traditional bank loans.

If heavy equipment financing bad credit is a problem, these lenders also tend to offer much more flexible and customizable loan terms. These can range from 12-84 months and longer.

Do Your Homework….You Have Options Available

By using online and third-party lenders, borrowers can obtain financing quickly, with more term and rate options. Another benefit is the ability to purchase equipment from whichever seller they want. When you go to a dealership and get approved for their financing, you are tied to buying at that dealership. With online and third-party lenders, when you get approved you can buy from whatever dealer you choose.

When considering heavy equipment financing, it’s important to remember that there are many options available, and that it pays to explore all of them before making a decision.


  • What credit score do you need to buy heavy equipment?

Some heavy machinery equipment-specific funding companies offer several options including a no credit check rent to own option. It will get you the funding up front with no recourse. This puts the equipment in your hands without a credit check.

  • What is the average interest rate on equipment financing?

This varies depending on several factors including:

  • The funding source you are working with – remember, there are thousands of banks out there, and while they all lend money, they lend it at different rates, even for the same credit profiles)
  • The dollar amount you are financing
  • The term you are financing for
  • Your overall credit profile
  • Down Payment Amount
  • Current interest rates
  • How long is the average equipment loan?

Some heavy equipment financing companies offer terms available from 12-84 months. You may even find longer terms available out to 15 years through SBA programs.

You Deserve the Best Financing Options for your Business

We know how challenging it can be to secure financial backing for your business, especially when it

 comes to heavy equipment financing.

By choosing a top-quality heavy equipment lending partner, you’re opening yourself up to a world of benefits. You’ll have access to the equipment you need to make your business thrive, without worrying about high upfront costs.

Plus, you’ll have the peace of mind that comes with knowing you’re working with a reputable lender who has your best interests at heart.

With the right financing in place, you’ll have the tools you need to take your operations to the next level.

Don’t sell yourself short. Let us help you give your business the boost it deserves.


Written by Jason Shea, An Equipment Finance Specialist with The Funding Booth.


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