Construction Equipment Financing: Excavators, Loaders and More

By Diane, PBC Finance

Most people know us for trucks, but I’ll let you in on something: a lot of my calls come from people who move dirt. Excavating contractors, site prep crews, landscapers who’ve outgrown renting, and dump truck owners who want a machine to load their own trucks.

If that sounds like you, this one’s for you. PBC Finance is an equipment finance broker, not a lender. Over 30 years I’ve worked with many lenders, and some of them really understand heavy equipment. Here’s how I approach these deals.

What Kinds of Equipment Can Be Financed?

Pretty much anything that earns its keep on a job site, including:

• Excavators and mini excavators
• Wheel loaders and track loaders
• Skid steers and compact track loaders
• Backhoes
• Dozers
• Motor graders
• Compactors and rollers
• Forklifts and telehandlers
• Attachments, in many cases

If it’s not on the list, ask me. Chances are I’ve seen it.

How Lenders Look at Heavy Equipment

With trucks, lenders look at mileage. With heavy equipment, it’s usually hours. They’ll also want to know:

• Year, make and model
• Hours on the machine
• Overall condition, including undercarriage, hydraulics and attachments
• Price, and whether it makes sense for that machine
• What you’ll use it for and how steady the work is

A well-maintained machine with service records is easier to finance. Older machines can still work, but your options may be narrower.

Rent, Lease or Buy?

I hear this question a lot from contractors. Here’s how I think about it:

• Renting makes sense for short jobs or equipment you only need now and then.
• Financing a purchase can make sense when you use the machine regularly and want to build equity.
• Leasing can be an option when you want lower payments or plan to upgrade.

I always tell my clients to run the numbers with their accountant. I can tell you what financing options are available; your tax professional can tell you how they fit your books.

Dealer, Auction or Private Seller

Heavy equipment changes hands in lots of ways. Dealers are the simplest. Auctions can have good prices, but you need financing lined up first. Private sales, like buying from a contractor who’s retiring or downsizing, can be excellent value. Many finance companies won’t do private party deals. We do them regularly and we’ll help with title, lien and verification steps.

Getting Your Application Ready

• A completed credit application
• Business information and time in business
• Recent bank statements, and possibly tax returns or financial statements on larger deals
• Equipment details: year, make, model, serial number, hours and price
• An invoice, quote or bill of sale
• A short description of your work: the types of jobs, key customers and any contracts

About Credit

I’m going to give you the same honest answer I give everyone: there’s no single credit score that applies to every construction equipment deal. It depends on the lender, your history, your time in business and the equipment. Generally, stronger credit means more choices. Credit with some bumps may mean more down or a different structure. That’s general information, not a promise.

Tips for Contractors

• Keep service records for every machine. They help when you finance and when you sell.
• Know your hours. Have the exact reading when you call.
• Talk about seasonality. If your work slows in certain months, tell me how you handle it.
• Think about attachments. Ask whether they can be part of the deal.

Frequently Asked Questions

Can I finance a used excavator?
Yes. Hours, age and condition will affect which lenders will look at it.

Can I finance more than one machine at once?
Sometimes, depending on your file and the lender. Let’s talk about what you need.

Do you finance equipment for new contractors?
Start-ups are considered. Your experience in the trade will matter a lot.

Can I buy from another contractor instead of a dealer?
Yes. Private party deals are one of our strengths.

What size deals do you handle?
From $25,000 to $5 million.

Let’s Get That Machine on Your Job Site

If you’re ready to stop renting or need to add capacity, give us a call. Shellie and I return calls fast, the quote is free, and we’ll find a lender that fits.

👉 Fill out our credit application or Contact Diane and she’ll get back to you. Want a quick estimate first? Try our equipment finance calculator.