For an equipment-based business - excavation, landscaping, hauling, demolition, agriculture - the machines ARE the balance sheet. And unlike most business assets, good iron holds value: a well-maintained excavator can retain 50-60% of its price after five hard years. Lenders know this, which makes heavy equipment one of the most financeable purchases in commercial lending.
Here's how to use that to your advantage.
What financing looks like across the market
Deals regularly include delivery, attachments and warranty in the financed amount ('soft costs'). App-only programs - minimal paperwork - commonly reach $150-350K for established businesses; above that expect financials.
| Deal profile | APR range | Term | Advance |
|---|---|---|---|
| New iron, strong credit | 7% - 11% | 4-7 yrs | up to 100% + soft costs |
| Used (dealer), average credit | 10% - 16% | 3-5 yrs | 85-100% |
| Used (auction/private) | 12% - 20% | 2-5 yrs | 80-95% |
| Challenged credit / startup | 16% - 28% | 2-4 yrs | with down payment |
The used-equipment edge
The smartest operators in this space buy 3-6 year old machines at 40-60% of new price, finance them over 3-4 years, and let the shallow end of the depreciation curve work for them. The financing market has caught up: auction purchases (Ritchie Bros, IronPlanet, GovDeals) and private-party deals finance routinely now, with the lender verifying serials, liens and condition.
Get approved before the auction
Pre-approval turns you into a cash buyer at auction speed. Walking in with a $200K equipment line approved means you bid on the machine, not on your financing timeline - and auction prices reward buyers who can close in 48 hours.
60-Second Funding Check
No credit pull. No obligation. Just a straight answer.
What do you need funding for?
Seasonal structures - payments that follow your revenue
Landscaping dead in January? Snow removal idle in July? Seasonal payment structures exist: skip-payment schedules, 90-day deferred starts, harvest schedules for ag. They cost slightly more in total interest and are worth every penny for businesses whose revenue arrives in waves. Ask for them explicitly - lenders don't volunteer.
Equipment-based businesses are in our name
Dealerun exists for businesses built on vehicles and machines. Our equipment-lending partners know a 2019 CAT 305 from a 2014 - and price accordingly, up to $5M, with pre-approvals fast enough for this weekend's auction.
Pre-qualify for your next machine
Two minutes now = cash-buyer speed when the right machine shows up.
FAQ
Can a startup contractor finance equipment?+
Yes - equipment financing is the most startup-friendly commercial credit because the machine secures the deal. Expect 10-25% down, personal credit scrutiny, and stronger terms once you show 6-12 months of revenue.
Can I finance equipment from a private seller or auction?+
Routinely. The lender verifies the serial number, runs a lien search, and may require an inspection on older iron. Build 3-5 extra days into private-party timelines for verification.
Should I use Section 179 on financed equipment?+
Usually a strong play: deduct the full purchase price this tax year while paying over 5. Profitable businesses effectively get the tax savings up front. Confirm limits and eligibility with your CPA.
Get a callback from a funding specialist
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Ready to put this to work?
See what funding your business qualifies for - it takes two minutes and won't affect your credit.