Equipment financing
With heavy iron, the machine itself carries much of the deal. Here is how its age, hours and resale value shape an offer, and when a lease or a different product makes more sense.
✓ Checking what you qualify for does not affect your credit score.
Updated October 13, 2026 · Merchant Fund Express
The funder pays the dealer or seller, and the machine serves as collateral, usually through a lien recorded on the equipment until it is paid off. Because the asset supports the deal, equipment financing can be a cheaper fit than unsecured working capital for the same dollar amount. See equipment financing for the overview.
The file is still read on the business: time in business, credit, revenue and existing positions under the published requirements. Construction businesses applying on the revenue-based tier have their own rules on that page.
| Financing | Lease | |
|---|---|---|
| Who owns it | You, once paid off | The lessor, unless you buy it at the end |
| Upfront cash | Often a deposit | Often lower upfront |
| Best when | You will run the machine for years | You need it for a contract period or want to upgrade often |
| End of term | Machine is yours | Return, renew or buy out |
If you already lease a machine and want to own it, see funding with an equipment lease. For the tax side of buying, read Section 179 for equipment and talk to your CPA.
The gap between the price and what the machine is worth as collateral is usually covered by your deposit.
An excavation contractor, 6 years in business with $140,000 a month in deposits, buys a used 30-ton excavator with 3,200 hours for $185,000 from a dealer.
| Item | Amount |
|---|---|
| Purchase price | $185,000 |
| Deposit (15%) | $27,750 |
| Amount financed | $157,250 |
| Monthly payment test | Sized against the slowest month of deposits |
| Lien | Recorded on the excavator until paid off |
If the same contractor wanted the excavator for a single 10-month job, a lease or rental could cost less overall than owning it.
All figures in worked examples are illustrations of the arithmetic, not offers or quotes. Real terms depend on your file and the funder.
Repairing a machine you already own is usually a working capital need, not equipment financing; see excavation equipment financing and working capital. If you need the machine and cash for the crew, a combined request can make sense. When you have a quote in hand, apply in about five minutes.
Yes. Age, hours, make and condition decide how much of the price the machine supports, and the deposit covers the rest.
It depends on the machine's collateral value and your file. Newer, lower-hour machines from a dealer usually need less.
A lease often fits short contract periods or frequent upgrades. Financing fits machines you will run for years.
Usually, with clean title, proof of no existing liens and photos or an inspection.
Construction files are read on the published requirements, and the revenue-based tier has construction-specific rules. Residential remodeling is restricted.
Same-day decision. Applying takes a few minutes and will not affect your credit score.
