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Construction and Heavy Equipment Financing: Best Loan Options

By Randa Kriss, Hillary Crawford
Last updated on May 7, 2024
Edited bySally Lauckner
Fact checked and reviewed
You can get construction and heavy equipment financing from traditional, online and specialty lenders.

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Construction and heavy equipment financing are 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.

How much do you need?

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We’ll start with a brief questionnaire to better understand the unique needs of your business.

Once we uncover your personalized matches, our team will consult you on the process moving forward.

Here are 7 heavy equipment financing companies

LenderNerdWallet RatingMax loan amountMin. credit scoreNext steps

SBA CDC/504 loan

Best for Low-interest heavy equipment financing

$5,000,000680
Read Review

National Funding - Equipment Financing

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4.5/5

Best for Heavy equipment financing for startups

$150,000600

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Triton Capital - Equipment financing

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4.0/5

Best for Heavy equipment financing for bad credit

$250,000575

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JR Capital Equipment Financing

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4.0/5

Best for Heavy equipment financing with no down payment

$10,000,000620

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Balboa Capital - Equipment Financing

Best for Same-day heavy equipment financing

$500,000620
Read Review

Commercial Fleet Financing Equipment Financing

Best for Construction vehicle financing

$1,000,000640

Wells Fargo Commercial Equipment Financing

Best for Established businesses

Undisclosed700
Read Review

Here are 7 heavy equipment financing companies

Best for Low-interest heavy equipment financing

U.S. Small Business Administration

Max Amount

$5,000,000

Min. Credit Score

680

Best for Heavy equipment financing for startups

National Funding

Max Amount

$150,000

Min. Credit Score

600

Best for Heavy equipment financing for bad credit

Triton Capital

Max Amount

$250,000

Min. Credit Score

575

Best for Heavy equipment financing with no down payment

JR Capital

Max Amount

$10,000,000

Min. Credit Score

620

Best for Same-day heavy equipment financing

Balboa Capital

Max Amount

$500,000

Min. Credit Score

620

Best for Construction vehicle financing

Commercial Fleet Financing

Max Amount

$1,000,000

Min. Credit Score

640

Best for Established businesses

Wells Fargo

Max Amount

Undisclosed

Min. Credit Score

700

I'M INTERESTED IN:

Our pick for

Low-interest heavy equipment financing

SBA 504 loans are designed specifically for the purchase of large fixed assets. These loans offer low interest rates and long repayment terms.

SBA CDC/504 loan

Max Loan Amount
$5,000,000
Min. credit score
680
Est. APR
5.00-7.00%
SBA 504 loans are designed to promote business growth and job creation through the purchase or upgrade of major fixed assets.

Max loan

$5,000,000

Min. Credit score

680

Apr range

5.00-7.00%

SBA 504 loans are designed to promote business growth and job creation through the purchase or upgrade of major fixed assets.

Our pick for

Heavy equipment financing for startups

If you have at least six months in business, you may qualify for equipment financing from National Funding.

National Funding - Equipment Financing

Read Review

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Max Loan Amount
$150,000
Min. credit score
600
Borrowers who can't qualify for more traditional loan options might consider National Funding for fast access to capital.

Max loan

$150,000

Min. Credit score

600

Borrowers who can't qualify for more traditional loan options might consider National Funding for fast access to capital.
Read Review

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Our pick for

Heavy equipment financing for bad credit

Triton Capital offers construction and heavy equipment loans to borrowers who have a minimum credit score of 575.

Triton Capital - Equipment financing

4.0
NerdWallet rating 

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Max Loan Amount
$250,000
Min. credit score
575
Est. APR
5.99-34.99%
Triton Capital offers fast equipment loans up to $250,000 for businesses in a range of industries.
4.0
NerdWallet rating 

Max loan

$250,000

Min. Credit score

575

Apr range

5.99-34.99%

Triton Capital offers fast equipment loans up to $250,000 for businesses in a range of industries.

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Our pick for

Heavy equipment financing with no down payment

With JR Capital, you can finance a variety of construction and heavy equipment purchases — no down payment required.

JR Capital Equipment Financing

4.0
NerdWallet rating 

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Max Loan Amount
$10,000,000
Min. credit score
620
Est. APR
6.99-18.00%
JR Capital provides fast equipment loans and leases, specializing in trucks, trailers and heavy equipment.
4.0
NerdWallet rating 

Max loan

$10,000,000

Min. Credit score

620

Apr range

6.99-18.00%

JR Capital provides fast equipment loans and leases, specializing in trucks, trailers and heavy equipment.

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Our pick for

Same-day heavy equipment financing

If approved, Balboa Capital can provide construction and heavy equipment funding within the same day.

Balboa Capital - Equipment Financing

Max Loan Amount
$500,000
Min. credit score
620
Borrowers with fair credit may consider Balboa Capital to get fast funding, especially for equipment loans.

Max loan

$500,000

Min. Credit score

620

Borrowers with fair credit may consider Balboa Capital to get fast funding, especially for equipment loans.

Our pick for

Construction vehicle financing

Commercial Fleet Financing specializes in vehicle and truck financing. Through CFF, you can purchase dump trucks, excavators, dozers, mixer trucks, concrete plants and cranes, among other options.

Commercial Fleet Financing Equipment Financing

Max Loan Amount
$1,000,000
Min. credit score
640
Borrowers looking to benefit from industry expertise might choose Commercial Fleet Financing to fund a truck, trailer or construction equipment purchase.

Max loan

$1,000,000

Min. Credit score

640

Borrowers looking to benefit from industry expertise might choose Commercial Fleet Financing to fund a truck, trailer or construction equipment purchase.

Our pick for

Established businesses

Wells Fargo offers a robust construction equipment financing program, with industry specialists available to help you find the best option for your needs. You’ll likely need multiple years in business and strong credit to qualify.

Wells Fargo Commercial Equipment Financing

Max Loan Amount
Undisclosed
Min. credit score
700
Wells Fargo can provide a range of lease options for more established businesses that want a personalized lending experience.

Max loan

Undisclosed

Min. Credit score

700

Wells Fargo can provide a range of lease options for more established businesses that want a personalized lending experience.

How Much Do You Need?

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What is heavy equipment financing?

Heavy equipment financing refers to a loan that’s used to purchase major equipment or machinery for your business. These loans often serve businesses in the construction, farming, transportation, manufacturing and other similar industries.
Like other types of equipment financing, heavy equipment loans use the machinery you purchase as collateral on the loan.

How does heavy equipment financing work?

Heavy equipment loans are usually structured as business term loans. You receive a lump sum of capital from a lender to buy your equipment and then repay the funds, with interest, over a specific period of time.
Repayment terms on construction and heavy equipment loans typically range from 12 to 84 months, depending on the type of machinery you’re purchasing. Payments are generally made on a monthly basis, although some lenders offer flexible payment schedules (e.g., quarterly, semi-annually, seasonally).
Heavy equipment financing rates can range from 5% to 36% APR. The rate you’ll receive, however, will depend on your business’s qualifications, your down payment and the value of the equipment you’re purchasing.

Construction and heavy equipment financing vs. leasing

When you're trying to acquire construction or heavy 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:
  • Payments. Equipment leases typically have lower monthly payments than equipment loans. You will, however, usually pay more over the course of the lease than you would with a loan.
  • Ownership. With financing, you own your equipment at the end of the term. With a lease, on the other hand, the lender still owns the equipment. You may have an option to purchase it, or start a new lease agreement.
  • Down payment. Equipment financing usually requires a down payment, which is not usually the case with leasing.
  • Lifespan of equipment. Whereas your heavy equipment may become outdated during the loan term, leasing allows you to update your equipment once the lease concludes.

Where to get heavy equipment financing

A green bank.
Banks and SBA lendersBanks 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.
A person looking at a mobile phone.
Online equipment lendersSome 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.
Green paycheck.
Specialty equipment financing companiesCertain 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.

How to finance heavy equipment

You can get heavy equipment financing by following these steps:

1. Evaluate your financing needs

You should consider what type of construction or heavy equipment you need and how much it’s going to cost. Many heavy equipment lenders will require a down payment, so you’ll also want to determine how much you can afford.
A business loan calculator can be a useful tool to help you estimate payments and interest costs.

2. Review your business’s qualifications

Although business loan requirements vary, most lenders will consider your personal credit score, time in business and annual revenue. You should look at these factors ahead of time to determine where you might be able to qualify for a loan.

3. Find the equipment you want to purchase

Many lenders will want you to provide an equipment quote as part of the application process. You should browse vendors and suppliers to find the equipment you need and determine which company can offer the best price.

4. Compare heavy equipment financing companies

You should research and compare several heavy equipment financing companies to see which one can offer you the best deal (and make sure you can qualify). As you browse your options, you should make sure that the lender can fund the type of equipment you’re looking to purchase — some companies may not fund high-mileage trucks, for example.
You should also consider a lender’s repayment terms, interest rates, fees, funding speed and application process.

5. Gather your documents and apply

The application process for your heavy equipment loan will vary based on the lender. Banks and credit unions, for instance, will require more documentation and may require you to visit a branch location to apply. Online lenders, on the other hand, will typically have fewer documentation requirements and can process applications quickly.
You may need to provide some, if not all of the following:
  • Basic information about you and your business.
  • Personal and business bank statements.
  • Personal and business tax returns.
  • Business financial statements.
  • Down payment amount.
  • Equipment quote.
After you’ve submitted your application and received approval, the lender will provide an equipment financing agreement for you to sign. You should review the loan agreement thoroughly and make sure you understand all the terms and conditions. If you have any questions or concerns, you’ll want to contact your lender directly for clarification.

Frequently asked questions

Last updated on May 7, 2024

Methodology

NerdWallet’s review process evaluates and rates small-business loan products from traditional banks and online lenders. We collect over 30 data points on each lender using company websites and public documents. We may also go through a lender’s initial application flow and reach out to company representatives. NerdWallet writers and editors conduct a full fact check and update annually, but also make updates throughout the year as necessary.
Our star ratings award points to lenders that offer small-business friendly features, including:
- Transparency of rates and terms. - Flexible payment options. - Fast funding times. - Accessible customer service. - Reporting of payments to business credit bureaus. - Responsible lending practices.
We weigh these factors based on our assessment of which are the most important to small-business owners and how meaningfully they impact borrowers’ experiences.
NerdWallet does not receive compensation for our star ratings. Read more about our ratings methodology for small-business loans and our editorial guidelines.

Wondering if you qualify?

It’s possible to get a business loan even if you have bad credit. Bad-credit business loans are available from alternative sources, like online or nonprofit lenders.

Learn more