Spend Less Money by Financing Your Subsequent Used Equipment Purchase

Heavy equipment may be expensive for your construction firm

Used equipment saves money. Financing construction equipment might help you avoid utilizing your cash flow or savings.

Rental experts opine that It’s good for a customer that doesn’t have a lot of money and wants to save for something else, like raw materials or new labor. 

“Rates can be very competitive. Financing heavy equipment like a forklift, boom lift, or excavator may reduce taxes. Section 179 of the tax code allowed accelerated depreciation on capital investments.”

Consult a tax specialist to learn how financing construction equipment might reduce your taxable revenue and tax bill.

Where to acquire financing: businesses that finance heavy equipment

There are a few ways you may get a loan or lease. Both new and current clients may get loans from conventional banks, credit unions, and lenders like Charter Capital. Vendors of equipment may also provide financing via a lending associate. 

Like you would when financing a vehicle or a house, it’s crucial to compare rates, terms, and fees when looking for a heavy equipment loan. Whether you can finance the warranty in addition to the equipment is an excellent topic to ask. Some lenders let you include the warranty expense in the selling price and loan. Through Captive Capital, United Rentals offers financing that covers warranty and freight expenses. 

Rates and conditions of equipment financing

Rates of interest

Interest rates and conditions for a heavy equipment loan or lease might change. The prime rate, which varies over time, is the benchmark for interest rates. However, lenders also consider other aspects when determining interest rates.

It will also rely on the consumer themself, their credit rating, and how much equipment they’re buying.

In rare circumstances, lenders could even provide financing at 0% APR, which means you pay no interest.

Loan conditions

Depending on your product, terms might vary from 12 months to 6 years. Choose the term based on the monthly payment you can make; longer periods result in lower monthly payments but a larger total cost. Many lenders won’t provide a loan longer than the equipment’s usable life. 

While some clients could be eligible for a loan that covers the whole purchase cost, certain lenders can demand a down payment, particularly for borrowers with less than ideal credit. 

What is the basic paperwork I need to submit a finance application?

Lenders may have varying application criteria. Applicants often need identification (such as a driver’s license), a social security number, a corporation ID number if appropriate, bank account statements to show cash flow, and business or personal tax filings. You must supply information from the seller on the equipment you are buying if you want to use it as loan security. 

How soon will I learn whether I’m eligible for financing?

The lender will do a credit check. Some lenders may get approval in as little as 24 to 48 hours, while bank loans might take up to 10 business days. Customers who submit a full application and all the supporting documentation and request financing via United Rentals often hear back within 24 hours. 


Poor or lackluster credit may increase your chances of getting a heavy equipment loan (all lenders have credit score requirements, although scores below 630 are often considered bad). 

This makes the equipment loan collateral. If you can’t make payments, the lender may seize and sell the item, which pays off your debt but puts a black mark on your credit score.