Construction Equipment Finance

We finance virtually all construction plant and machinery including excavators (from 1.5-ton mini diggers to 90-ton mining excavators), wheel loaders, backhoes, bulldozers, skid steer loaders (Bobcats), cranes (mobile, tower, crawler), graders, compactors, concrete pumps and mixers, dump trucks, telehandlers, drilling rigs, and specialized equipment. Both new equipment from authorized dealers (Caterpillar, Komatsu, Hitachi, Volvo, JCB) and quality used equipment are eligible. We assess each machine individually based on age, condition, hours, and market value. Loan amounts range from $20,000 for compact equipment to $2 million+ for large excavators or crane packages.

Yes, we regularly finance used construction equipment. Most lenders approve machines up to 10-15 years old at loan end, meaning equipment can be 5-10 years old at purchase for a 5-year loan. Well-maintained equipment from reputable brands (Cat, Komatsu, Hitachi) is easier to approve than lesser-known brands. Expect to provide recent service records, hour meter readings, and independent valuations for equipment over $100,000. Interest rates on used equipment are typically 1-3% higher than new (8-11% p.a. vs 6-9% p.a.), and you'll need larger deposits (25-30% vs 10-20% for new). Machines with low hours and excellent condition may qualify for better rates.

Deposit requirements vary by equipment age and business strength. New equipment from authorized dealers typically requires 10-20% deposit for established businesses. Used equipment needs 20-30% deposit, and older machines (10+ years) may require 30-40%. Startup construction businesses usually need 30-40% deposit regardless of equipment age. However, strong businesses with excellent credit and 2+ years trading can sometimes access lower deposits or even 100% finance for new equipment. If you're trading in old equipment, the trade-in value counts toward your deposit. Larger deposits result in better interest rates and higher approval chances.

Construction equipment finance rates typically range from 6% to 11% p.a. for established businesses. New equipment from major brands attracts the best rates (6-9% p.a.), while used or older equipment is higher (8-11% p.a.). Your rate depends on: business trading history (2+ years preferred), credit profile, deposit size (20%+ is ideal), equipment age and condition, and loan amount. Businesses under 2 years old or with credit issues may pay 10-14% p.a. Specialty equipment like cranes or drilling rigs sometimes attracts higher rates due to narrower resale markets. We shop your application across multiple specialist heavy equipment lenders to find the best rate.

Yes, seasonal repayment structures are available for construction businesses with predictable cash flow patterns. This is ideal if your business is busier in certain months (e.g., summer construction season) and quieter in others (wet winter months). You might pay $8,000/month in high season (October-March) and $3,000/month in low season (April-September), with the same total repayment over the year. This matches cash flow to revenue and prevents cash shortages during quiet periods. Seasonal structures typically require 2+ years trading history to demonstrate the seasonal pattern. Not all lenders offer this, but we work with specialists who understand construction cash flow cycles.

Balloon payments (residual values) are common in construction equipment finance. Deferring 20-40% to loan end significantly reduces monthly repayments, preserving cash for wages, materials, and business growth. For example, a $300,000 excavator over 5 years at 7.5% with a 30% balloon reduces monthly payments from $6,012 to approximately $4,509. This saves $1,500/month in cash flow. At loan end, you can pay the balloon, refinance it, trade in for newer equipment, or sell privately. Balloon payments make sense if you upgrade equipment regularly (every 3-5 years) or want to match payments to equipment revenue. However, you pay more total interest over time.

Yes, but approval is more challenging and requires stronger financials. Lenders want to see: (1) relevant industry experience from the business owner (e.g., 5+ years as excavator operator before starting earthmoving business), (2) solid cash flow and profitability in the months you have been trading, (3) larger deposit (typically 30-40%), (4) good personal and business credit, and (5) a clear business plan showing how the equipment will generate revenue. Some specialist lenders offer startup packages specifically for new construction businesses. Equipment purchased for specific contracts (showing contract value and duration) is easier to approve. Expect rates of 9-12% p.a. for startups vs 6-9% p.a. for established businesses.

You remain responsible for loan repayments even if equipment breaks down — the loan is secured against the asset, and lenders expect you to maintain it. This is why comprehensive insurance is mandatory for financed construction equipment. Your insurance should cover mechanical breakdown, accidental damage, theft, and fire. Some lenders require extended warranties on used equipment. If equipment is written off (accident, fire, major breakdown), insurance pays out the loan and you receive any excess. To minimize breakdown risk, maintain regular servicing, keep detailed service records, and consider extended warranties for used equipment. Some finance packages include maintenance programs that spread servicing costs across the loan term.