Construction and Heavy Equipment Financing: Best Loan Options

You can get construction and heavy equipment financing from traditional, online and specialty lenders.
Randa Kriss
Hillary Crawford
By Hillary Crawford and  Randa Kriss 
Edited by Sally Lauckner

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Construction equipment financing is available from a variety of sources, including companies that specialize in the construction industry. You can use one of these small-business loans to purchase new or used machinery, including bulldozers, excavators, forklifts and cranes, among other heavy equipment you may need.

Generally, the best construction equipment loan for your business is the most affordable option you can qualify for that meets your needs.

If you want the most competitive terms: Banks and Small Business Administration, or SBA, lenders — usually banks and credit unions — can offer low interest rates and long repayment terms. To qualify, however, you’ll need to meet strict eligibility requirements. These loans may also be slow to fund. Learn more.

If you need capital quickly: Some online equipment lenders can approve and fund applications in as little as 24 hours, and most companies can provide financing within a few business days. These lenders typically offer a streamlined underwriting process and have flexible qualifications. Learn more.

If you want industry experience: Certain financing companies specialize in the construction industry, offering knowledge and expertise to guide you through the funding process. You may even be able to find a lender who works directly with equipment vendors to supply borrowers with the machinery they need. Learn more.

Here are traditional and alternative lenders that offer construction and heavy equipment financing, as well as details on how to choose the right funding for your business.

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Construction equipment financing from bank and SBA lenders

Wells Fargo

Best for: Variety of financing options.

Wells Fargo offers a robust construction equipment financing program, with funding amounts that start at $100,000. Through this program, you can get a loan or lease to finance heavy equipment that’s used for a range of purposes, including highway construction, utility contracting, bridge and tunnel construction and gravel production, among others.

Additionally, this lender provides specific equipment loans for new or used construction vehicles (e.g., boom trucks, crane trucks, work trucks), with repayment terms ranging from 36 to 84 months. You can get up to 100% financing with competitive fixed or floating interest rates.

Wells Fargo also issues SBA 7(a) and CDC/504 loans. SBA 7(a) loans are available in amounts up to $5 million.

For SBA 504 loans — which are designed for equipment and real estate purchases — you can get up to $10 million on the Wells Fargo portion of the loan and up to $5 million on the CDC portion. With either loan type, repayment terms are up to 10 years.

U.S. Bank

Best for: Quick bank financing.

U.S. Bank provides construction equipment financing in amounts up to $1 million. The bank gives you the option to finance multiple pieces of equipment on one contract, with repayment terms ranging from 24 to 60 or more months.

This program also allows you to customize your payment structure — and U.S. Bank offers up to 125% financing, including up to 25% of additional soft costs, such as installation, tax and freight fees.

If you want the benefits of a bank business loan with the speed of an online lender, however, you can apply for equipment financing through U.S. Bank’s quick loan program. With a quick loan, you can purchase one to four pieces of securable construction equipment and receive flexible terms of up to 84 months.

Compared with the bank’s larger equipment financing program, loan amounts are smaller, ranging from $5,000 to $250,000, but funding is available as quickly as the same business day. You can apply for one of these equipment loans online, and existing U.S. Bank account customers can access additional benefits.

Bluevine - Line of credit
OnDeck - Online term loan
Funding Circle - Online term loan
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Construction equipment financing from online lenders

Balboa Capital

Best for: Same-day funding.

If you need quick access to funds, Balboa Capital can issue construction and heavy equipment loans as fast as the same day. To qualify, you need a minimum credit score of 620, at least one year in business and at least $100,000 in annual revenue — making this a good option for borrowers who can’t qualify for bank financing.

Through Balboa, you can purchase new or used equipment for up to $500,000 with terms that typically vary between 24 and 60 months. This lender offers a simple application that can be completed in just minutes — and requires only soft collateral (e.g., inventory, software, intellectual property) for applications up to $350,000.

Balboa doesn’t include interest rate information on its website, however, so you’ll have to contact a funding specialist to learn more.

Triton Capital

Best for: Borrowers with bad credit.

Borrowers with poor or limited credit histories might consider Triton Capital as a good option for construction equipment financing. The lender accepts borrowers with a minimum credit score of 600.

You can get an equipment loan of up to $250,000 with repayment terms that vary from 12 to 60 months. Interest rates range from 5.99% to 34.99%.

To apply, you can submit a simple application with bank statements and an equipment quote. In most cases, Triton can approve loans within two to four hours and provide funding within one to two business days.

Construction equipment financing from specialty lenders

Commercial Fleet Financing

Best for: Construction vehicle financing.

Commercial Fleet Financing, or CFF, is a specialty lender that’s known for its vehicle and truck financing. The lender offers semi truck financing, trailer financing, tow truck financing and construction financing — with a focus on heavy equipment.

Through Commercial Fleet, you can purchase dump trucks, excavators, dozers, mixer trucks, concrete plants and cranes, among other options. The lender finances popular industry brands, including John Deere, New Holland and Caterpillar.

Commercial Fleet offers flexible loan (and lease) options, with repayment terms that range from 36 to 60 months — and some that extend to 108 months depending on the type of equipment. You may also be able to get zero-money-down financing, which is designed for newer businesses or those struggling with cash flow.

To apply, you can fill out a one-page application, provide a bill of sale for your equipment and receive approval in as little as two hours. A CFF representative will contact you to complete the process, and you may be able to access your funds as fast as 24 hours.

Should you finance or lease construction equipment?

When you're trying to acquire construction equipment for your business, it can be difficult to determine whether a loan or a lease is better for your needs.

In general, if you’re going to use the equipment at least 60% of the time, it will be more cost effective to buy it or get a lease-to-own option. If you’re not going to use the equipment that frequently, leasing — or even renting — may be a more suitable choice.

Here are some other differences to note when trying to choose between equipment leasing and financing:

Equipment loan

Equipment lease

Higher monthly payment.

Lower monthly payment.

Equipment owned at the end of the term.

Equipment owned by the lender at the end of the term; may have an option to purchase or start a new lease.

Down payment usually required.

Doesn’t usually require a down payment.

May pay less over the course of the loan than you would with a lease.

May pay more over the course of the lease than you would with a loan.

Equipment can become outdated during the loan term.

Can update equipment once the lease is over.

More NerdWallet resources for construction companies:

Frequently asked questions

Some heavy equipment lenders will accept credit scores as low as 600, while others will require good credit (typically scores of 690 or higher). Although you may be able to access construction equipment financing with bad credit, you’ll likely receive higher interest rates on these loan options.

When you finance construction or heavy equipment, the machinery being financed typically serves as collateral on the loan. You can get an equipment loan up to 100% of the value of the equipment you’re looking to purchase — depending on the lender you work with and your qualifications. Then, you repay the loan over time, with interest.

Repayment terms on equipment financing can range from 12 to 84 months but ultimately vary based on your lender and business’s qualifications. In general, lenders won’t offer financing terms longer than the projected useful life of the equipment.