Construction and Heavy Equipment Financing: Best Loan Options

SBA 504 loans are an affordable option for funding equipment and real estate purchases. These SBA loans offer low interest rates, long repayment terms and large funding amounts. 504 loans also have a fairly low down payment requirement compared to other equipment or real estate loans. To qualify, however, you’ll likely need to be an established business with good credit.

• Be a for-profit U.S. business.
• Net worth of less than $15 million.
• Average net income of less than $5 million for the two years prior to your application.
• Financial qualifications determined by individual lender.

National Funding stands out as an online equipment financing option for startups and borrowers with bad credit — provided they have strong revenue. This lender offers equipment loans or leases for new and used equipment, and unlike some equipment lenders, doesn’t require a down payment. Funding can be available in as little as 24 hours.

• Minimum credit score: 600.
• Minimum time in business: Six months.
• Minimum annual revenue: $250,000.

Triton Capital stands out as an online equipment lender for borrowers with lower credit scores. Triton Capital can finance new or used equipment in a variety of industries. The lender offers competitive interest rates, long repayment terms and flexible payment options. You may be able to get approved and receive funding in as fast as one business day.

• Minimum credit score: 580.
• Minimum time in business: 24 months.
• Minimum annual revenue: $150,000.

JR Capital stands out as a specialized equipment financing lender that can fund equipment in a variety of industries. The lender offers competitive rates and repayment terms, as well as flexible payment options. JR Capital also has higher funding maximum than other online competitors and doesn’t require a down payment.

• Minimum credit score: 620.
• Minimum time in business: Typically 24 months, but can prioritize industry experience in some cases.
• No minimum annual revenue requirement.

Balboa stands out for its robust equipment financing program. The lender’s flexible equipment loans can be used to finance new or used vehicles, supplies or machinery. Balboa works with equipment vendors in a wide range of industries across the U.S. and only requires soft collateral (items that are considered expendable) on applications up to $350,000. Startups or borrowers with fair credit may be able to qualify.

• Minimum credit score: 620.
• Minimum time in business: One year.
• Minimum annual revenue: $100,000.

Commercial Fleet Financing (CFF) stands out for the industry experience it provides to borrowers looking to fund a truck, trailer or construction equipment purchase. The lender offers a variety of loan and lease options — and can customize terms based on your business’s needs. CFF also funds applications in as little as 24 hours.

• Minimum credit score: 640.
• Minimum time in business: Two years.
• Minimum annual revenue: Undisclosed.

Wells Fargo offers a range of financing and leasing options for more established businesses that want a personalized lending experience. Through its commercial financing division, Wells Fargo can fund vehicles, equipment, technology and aircrafts, as well as solar and marine initiatives. To get one of these products, you connect with a Wells Fargo equipment financing professional and talk to them about your business needs.

• Wells Fargo does not specify qualification requirements on its website, but like all bank financing products, you’ll likely need to meet strict eligibility criteria to qualify.