Personal Loans for Heavy Equipment

Heavy Equipment Loan Calculator

Can I get heavy equipment financing through a bank?

Yes, many banks and credit unions offer heavy equipment loans, but you will need to be in prime financial shape (both you and your business!) to qualify.

How many years can you finance heavy equipment for?

In almost all cases, you can finance heavy equipment for 1-10 years.

What is the average interest rate for heavy equipment financing?

This depends on how much you borrow and your personal circumstances, but in general most will sit between 3% and 13%, though can be anywhere from 2% to 20%.

Is it hard to finance heavy equipment?

It depends - it’s easier than getting a business loan of an equivalent value since the equipment acts as collateral, but you still need to keep in mind that the equipment costs tens of thousands, if not hundreds of thousands of dollars. The good news is heavy equipment tends to hold its value well, so the equipment will act as collateral.

Your lender will look at:

• Your time in business (they want to know that you’re stable)
• Your personal credit score (they want to see you have a history of managing your borrowing well)
• Business credit score, where possible
• Debt-to-revenue ratio (they want to ensure your debt does not eat up all your revenue)

Can you finance heavy equipment with bad credit?

Likely not - or at least, not without it coming at a high price for you. Heavy equipment financing interest rates can be as low as 2%, but also as high as 20%. If you’re paying 20% interest on a loan for $120,000, you’re going to need to be seriously profitable to be able to swallow those kinds of fees - most of the time, that’s simply not going to be the case, even if you’re willing to pay another 20% for your equipment.

What credit score do you need for heavy equipment financing?

Generally, you’re going to need a credit score of at least 620, though 660 or higher will give you the best chance of securing the loan or lease you need.

Best Heavy Equipment Financing Loans

Here are some of the best options for heavy equipment financing:

• Direct Capital - they offer funding of up to $500,000 over terms of 6 months to 6 years, with rates starting at 5.49%.
• Funding Circle - offers financing up to $500,000 over terms of 6 months to 5 years, with rates starting at 4.99%.
• Balboa Capital - offers funding up to $1 million over terms of 2 to 5 years.
• eLease - a good option for those with less than perfect credit scores. They offer financing up to $500,000 over terms of 2 to 5 years, with rates starting at 6%.
• Crest Capital - offers funding of up to $1 million over terms of 2 to 7 years, with rates starting at 5%.

How do I apply for heavy equipment financing?

The application process varies depending on what type of financing you choose and who you want to borrow from. If you want to borrow from a bank, you will need to get your documentation together and in most cases, make an appointment with a loan officer at the bank once they’ve approved your documents.

Online lenders make it much easier - you can usually complete the entire application process online.

Regardless of who you apply to, and for what, you’ll usually need the following documents:

• Business tax returns
• Personal tax returns
• Balance sheet
• Profit and loss statements
• Income statement
• A quote for the equipment you want to buy

Compare and apply

Ready to get the funding you need for your new heavy equipment? You’re in the right place. Compare the best heavy equipment loans in our tables and when you find the loan that’s right for your business, simply apply. Our recommended lenders generally make a decision in less than a week (sometimes in just hours) and give you the funding you need to move your business forward.