Heavy equipment financing typically approves at 550-600+ FICO, 6+ months in business, and $10K+ monthly revenue. Rates run 8-15% APR with 0-20% down depending on credit and equipment age. Terms run 5-7 years on new iron, 3-5 on used. Strong-brand assets (Cat, Komatsu, Deere, Volvo) finance fastest because their resale markets are deep.
Heavy equipment financing is asset-backed lending against iron with established resale markets. Because the equipment itself secures the loan, credit boxes run looser than for unsecured working capital, and approval often turns more on equipment quality and revenue stability than on raw FICO. This guide covers what U.S. contractors and operators actually see when financing excavators, loaders, dozers, cranes, and dump trucks. For broader context see equipment financing; for industry use cases see construction business financing.
What Counts as Heavy Equipment
For lender purposes, “heavy equipment” is iron that moves dirt, lifts loads, or hauls material at scale. Common categories: excavators (mini, midi, full-size, long-reach, crawler, wheel), wheel and track loaders, bulldozers, motor graders, articulated and rigid dump trucks, cranes (rough-terrain, all-terrain, crawler, tower), skid steers and compact track loaders, backhoes, telehandlers, scrapers, and asphalt/concrete equipment. Forestry iron (feller bunchers, skidders, log loaders) is the same financing world. Class-8 trucks and trailers finance through the same asset-based lenders even though they are technically vehicles.
Equipment outside this set — small generators, light-duty pickup trucks, hand tools, computers — finances under different programs (working capital, vehicle loans, or vendor terms). The bright line is: does the asset have a serial number, a five-figure-plus value, and an active resale auction? If yes, it finances as heavy equipment.
Rates and Terms
| Credit Tier | APR Range | Down Payment | Typical Term |
|---|---|---|---|
| A (720+ FICO) | 7-9% | 0-10% | 5-7 years |
| B (660-719) | 9-12% | 5-15% | 5-7 years |
| C (600-659) | 12-16% | 10-20% | 3-5 years |
| D (550-599) | 16-22% | 15-25% | 3-5 years |
Rates are illustrative; actual quotes depend on revenue, time in business, equipment age, and the specific lender. Asset-based lenders price more on collateral quality than on credit when the iron has strong resale; that is why a 600 FICO buying a 2-year-old Cat 320 can sometimes beat the rate a 680 FICO gets on an off-brand 8-year-old machine.
New vs Used Heavy Equipment
New equipment finances at the longest terms (5-7 years) and lowest rates because depreciation is predictable and resale value is documented. Used equipment up to ~7 years old typically finances at 4-5 years; older than that usually requires an independent appraisal and a 3-year max. Hour meter readings matter: a 5-year-old excavator with 2,000 hours finances differently than the same machine with 8,000 hours, even though they are the same model year.
Strong-brand iron with deep secondary markets — Cat, Komatsu, Deere, Volvo, Hitachi, Liebherr — gets better terms than off-brand or imported equipment, because if you default the lender can liquidate fast. See can you finance used equipment for the deeper version of this trade.
Documentation Needed
- Equipment quote or invoice with make, model, year, serial number, and condition
- 3-6 months of business bank statements
- Business formation documents (articles, EIN letter, license)
- Personal financial statement for deals over $250K
- Most recent business tax return for deals over $150K
- Insurance certificate — lender named as loss payee — before funding
Smaller deals (under $75K-$100K) can fund on bank statements and credit alone; larger deals add tax returns and personal financials. See documents needed for equipment financing for the cluster-wide checklist.
Industries That Finance Heavy Equipment
Construction is the dominant buyer (excavators, loaders, dozers, dump trucks). Forestry runs feller bunchers, skidders, and log loaders. Mining finances haul trucks and shovels. Agriculture finances tractors and combines under the same asset-based lenders. Oil and gas finances workover rigs and well-service equipment. Demolition and site-development contractors run mixed fleets of excavators and loaders. Each industry has its own seasonal cash-flow pattern that lenders factor into the underwriting; a forestry contractor with concentrated winter revenue gets a different file shape than a road contractor with even monthly billings. See industry pages for construction, forestry, and agriculture.
How to Improve Approval Odds
- Pick strong-brand equipment with clean hours. A 4-year-old Cat 336 at 3,500 hours finances at A-tier rates; the same year off-brand at 7,000 hours might not finance at all.
- Bring a real down payment. Even 5% extra down can move you a credit tier in the rate matrix.
- Show consistent deposits. Lenders care more about deposit stability than peak revenue. NSF count is a stronger predictor of approval than gross revenue.
- Explain seasonality. If you bill heavy in summer, include a one-page note on your seasonal pattern. Underwriters reward coherent files.
- Apply through one channel. Multi-lender brokers submit a single package and limit credit pulls. Applying serially burns FICO and signals desperation.
Heavy Equipment Financing vs SBA 7(a)
SBA 7(a) loans can finance equipment, but with a slower process (4-8 weeks vs 24-72 hours), more paperwork (3 years of tax returns, debt schedules, P&L), and a 660+ FICO floor. The trade is rate: SBA prime + 2.5-3.0% on a 10-year term beats any asset-based heavy equipment loan. If you need iron in 3 days, asset-based lenders win. If you need iron in 6 weeks and want the lowest payment, SBA may be cheaper. See equipment financing vs SBA loan for the full comparison.
Next Step
If you have an equipment quote in hand and need a real number, the fastest path is one application that goes to multiple asset-based lenders. Get matched for heavy equipment financing — one credit pull, multiple offers, no obligation.