That paid-off excavator in your yard is doing two jobs: digging, and quietly sitting on $60K of equity that earns nothing. Equipment refinancing - borrowing against machines you own - is one of the most underused capital moves in small business, and often the cheapest money available to asset-rich, cash-tight companies.
The two structures
- Equipment term loan (refi): the lender lends 50-75% of the machine's appraised value, secured by a lien. You keep using it exactly as before. Rates typically 10-18% - far below unsecured alternatives for the same profiles.
- Sale-leaseback: the lender buys the machine and leases it back to you, often with a buyout at term's end. Can free slightly more cash and sometimes carries tax angles - at the cost of title.
When this is the right move
And when it isn't: funding losses. Equity extracted to feed a business model that's underwater doesn't fix the model - it just transfers your last asset to the problem.
- Consolidating expensive daily-payment debt into one sane secured payment
- Funding a contract's mobilization costs when the margin clearly beats the interest
- Bridging a slow season with an asset instead of a stack of advances
- Grabbing a time-boxed opportunity (inventory buy, discounted equipment) at secured rates
What your iron is worth to a lender
Expect advances around 50-75% of orderly liquidation value - not what you'd get selling it retail with time and detailing. Trucks and trailers with titles fetch the top of the range; specialized machinery the bottom.
60-Second Funding Check
No credit pull. No obligation. Just a straight answer.
What do you need funding for?
Fast appraisals, real advances
Send us the machine list - year, make, model, hours, serial - and Dealerun partners can quote refi advances within a day or two. Equity you already earned, put back to work.
Unlock the equity in your equipment
List your machines, see your number.
FAQ
Can I refinance equipment that still has a small balance?+
Yes - the new loan pays off the old lien and advances against the remaining equity. Common on machines that are 70-80% paid down.
Does equipment refinancing hurt my ability to sell the machine later?+
You'll need to clear the lien at sale (payoff from proceeds, standard process). Practically it's identical to selling any financed asset - just factor the balance into your sale price math.
Get a callback from a funding specialist
Real questions, straight answers - no scripts, no pressure.
No credit impact. We never sell your information.
Ready to put this to work?
See what funding your business qualifies for - it takes two minutes and won't affect your credit.