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5 Heavy Equipment Financing Tips

Posted On: February 13, 2023 author Paul Kendall

 When you’re trying to take your construction company to the next level, it takes a lot of resources, time and energy to get there. That’s why construction firms like yours constantly rely on additional, outside funding through heavy equipment loans and heavy equipment financing. In other words, getting your company’s heavy equipment financed can be the “make or break” ingredient for a successful business.

As you start looking for outside financing, make sure that you are taking the time to recognize what a good deal is and how to avoid falling for false advertising.


1. Know Your Business Financials and Statistics

Knowing the status of your business is important when seeking out heavy equipment financing. You’ll want to know exactly what your credit score is, how long you have been in business, debt to income ratio, how much you have in assets, what you have available to provide as collateral, net operating capital and the cash flow of the business. These are statistics that outside lenders will be looking for when they make you an offer.

2. Not All Heavy Equipment Loans Are the Same

When you see heavy equipment financing companies advertising an offer, realize that the offer may be different than an offer you saw from another financier. The metrics that heavy equipment financing companies go by when running their ads will differ. This is why it helps to look beyond the advert and figure out what the true offer will be.

3. Preview All Heavy Equipment Financing Options

Before you commit your business to any single deal, make sure that you exhaust all of your options. Shop around for a while until you’ve found a deal that fits the best for your business plan and budget. Avoid taking the very first offer that looks appealing, as it may not actually be the best deal when you get to the end of the contract.

4. Contact Local Businesses for Advice

One of the easiest ways to find great heavy equipment financing companies is to chat with other local businesses. If you know another reputable construction company who may not be a direct competitor (or perhaps from another market region), you can learn other financing pointers from their experience.

5. Know What Your Heavy Equipment Financing Rates Will Be

After you’ve found a great heavy equipment financing company to work with, you will want to verify exactly how much your heavy equipment loan will cost you. As you know, going in blind to any transaction is a bad idea. Knowing how much you will owe and for how long can help you factor it into your monthly budget.

Heavy Equipment finance rates will depend on these factors:

  • The price of the equipment.
  • Money down.
  • The age of the equipment you're buying.
  • Your personal and business credit history.
  • How long you've been in business.


When comparing finance offerings from several companies. Here's what to compare in order to compare apples to apples:

  • Term of the agreement.
  • Final funding amount paid to the vendor including taxes, freight, etc.
  • Final Monthly payment including or excluding taxes.
  • Number of payments or % down due up front.
  • Fees such as doc fees and titling fees due up front.
  • Buy out at the end of the agreement.


Once you have all of this information you should be able to compare apples to apples your finance and lease options.

Click here for a heavy equipment financing calculator to calculate how much your heavy equipment financing payments could be and how much heavy equipment you can afford to buy based on your monthly budget.

If you plan on buying out early make sure to get there pre-payment policy in writing or at least in an email. 

Getting heavy equipment financing can be a huge boost to any construction company, whether you’re a small time business or operating on massive jobs. Getting the right financing can be tricky, but as long as you know what’s affordable for your business and get the right deal, you’ll be well on your way to taking your construction company to the next level.

Having the most reliable and upgraded heavy equipment for your business, acquired with affordable and flexible monthly payments, can have a lot of benefits for your business.  With heavy equipment financing you get section 179 tax benefits. With the passage and signing into law of H.R.1, aka, The Tax Cuts and Jobs Act, the deduction limit for Section 179 increases to $1,000,000 for 2018 and beyond. The limit on equipment purchases likewise has increased to $2.5 million.

Ready for a no obligation Heavy Equipment financing quote? Feel free to call a heavy equipment financing specialist at 866-458-4777

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