Heavy Equipment Financing: What You Need to Know Before You Apply
Heavy Equipment Is in a Category of Its Own
Financing a $15,000 restaurant mixer and financing a $500,000 excavator are fundamentally different transactions. Heavy equipment loans involve larger dollar amounts, specialized collateral, longer terms, and lenders who understand the residual value of iron. If you’re shopping for heavy equipment financing, here’s what you need to know.
What Counts as Heavy Equipment
In the financing world, “heavy equipment” typically includes:
- Excavators, bulldozers, graders
- Cranes and lifts (boom trucks, spider lifts, forklifts)
- Skid steers and compact track loaders
- Asphalt pavers and road equipment
- Concrete mixers and pump trucks
- Agricultural equipment (combines, large tractors)
- Mining equipment
- Oil field equipment
How Heavy Equipment Financing Differs
- Longer terms available — 60, 72, or even 84 months for equipment over $150K
- Lender inspections — Used heavy equipment may require an appraisal or inspection
- Titles and liens — Lenders will place a lien on the equipment title (UCC filing) until payoff
- Insurance requirements — Most heavy equipment lenders require proof of equipment insurance
- Balloon payment structures — Some deals use a balloon at the end to lower monthly payments
New vs. Used Heavy Equipment Financing
Both are available. Used equipment financing typically comes with:
- Slightly higher interest rates (older collateral = more risk)
- Age restrictions (many lenders won’t finance equipment over 10–15 years old)
- Lower advance rates on older machines (you may need more down)
New equipment typically finances at better rates and with more flexible terms.
What Lenders Review for Heavy Equipment Loans
- Business financials (tax returns, bank statements)
- Equipment quote or appraisal
- Personal credit (and sometimes business credit)
- Proof of insurance
- Equipment spec sheet (age, hours, condition for used)
Champion Equipment Finance and Heavy Equipment
Champion Equipment Finance works with construction, agriculture, oil field, and infrastructure businesses to finance heavy equipment from $25,000 to several million dollars. We have relationships with lenders who specialize in heavy iron and understand that a 2018 excavator with 3,000 hours is still excellent collateral — even if a general bank won’t touch it.
