Logging and forestry equipment financing covers the full fleet: skidders ($150K–$500K), feller bunchers ($300K–$700K), processors and harvesters ($350K–$650K), log trucks ($80K–$200K), delimbers ($100K–$250K), log loaders ($120K–$280K), and chippers/grinders. Equipment loans typically run 8–14% APR with 36–60 month terms and 10–25% down at 600+ FICO. Specialty heavy-equipment lenders (PEAC Solutions, Wells Fargo Equipment Finance), OEM captives (John Deere Financial, Cat Financial, Tigercat Capital), and generalist equipment lenders all compete. Used equipment up to 10–12 years old finances at the same rate with a 12-month warranty.
Logging and forestry equipment is some of the most specialized heavy equipment financed in the U.S. The machines are expensive ($150K–$700K for the major pieces), the duty cycle is brutal, and the resale market is thinner than for general construction equipment — which is exactly why lenders who understand logging price differently than generalists. This guide covers the full equipment fleet, what financing typically looks like, and how logging operators structure deals around the seasonality and commodity exposure of the industry. For the broader product hub see equipment financing.
Logging Equipment Types and Cost Ranges
| Equipment | New cost | Used (3–7 yr) | Useful life |
|---|---|---|---|
| Skidder (cable or grapple) | $150K–$500K | $80K–$300K | 8–12 yr |
| Feller buncher | $300K–$700K | $150K–$450K | 8–12 yr |
| Processor / harvester | $350K–$650K | $180K–$400K | 8–10 yr |
| Delimber | $100K–$250K | $50K–$150K | 8–12 yr |
| Log loader / knuckleboom | $120K–$280K | $60K–$160K | 10–15 yr |
| Log truck | $80K–$200K | $40K–$120K | 5–10 yr |
| Chipper / grinder | $75K–$300K | $40K–$180K | 8–12 yr |
| Forwarder | $250K–$500K | $130K–$320K | 8–12 yr |
The brands that dominate the U.S. market: John Deere Construction & Forestry, Caterpillar Forestry, Tigercat, Komatsu Forest, Ponsse, and TimberPro. OEM captive financing is available on new equipment from each.
Why Logging Equipment Financing Is Priced Differently
Logging equipment runs 1–2% higher in rate than mainstream construction equipment. Three reasons:
- Commodity price exposure. Logging cash flow tracks lumber prices, which are volatile. Lenders price for the risk that an operator could see a 30% revenue drop in a soft lumber year.
- Seasonality. Many logging operations run 9–10 months a year due to weather, ground conditions, or mill seasonality. Lenders structure payments around the operating months but still need debt service every month.
- Thinner resale market. A used skidder has fewer buyers than a used excavator. Repossession recovery values are lower — lenders price the higher loss-given-default into the rate.
The trade-off: specialty heavy-equipment lenders who understand these dynamics will fund deals generalist lenders pass on. PEAC Solutions, Wells Fargo Equipment Finance, Pawnee Leasing, and several smaller specialty shops dominate this niche.
Loan vs Lease vs OEM Captive
Equipment loan
- Structure: 36–60 month term, 8–14% APR, 10–25% down. You own the equipment outright at the end.
- Tax: Full Section 179 deduction in year one (up to $1.16M in 2026) plus bonus depreciation on the remainder.
- Best for: Established operators with 2+ years history and equipment they plan to run 8–12 years.
Operating lease (less common in logging)
- Structure: 36–48 months, lower monthly than equivalent loan, $0 down possible.
- Best for: Operators who want to refresh equipment every 4–5 years rather than running a full 8–10 year cycle. Less common in logging because operators typically run equipment to its full useful life.
OEM captive financing
- Structure: Direct from the manufacturer. John Deere Financial, Cat Financial, Tigercat Capital. Often includes promotional rates, deferred payments, or bundled extended warranty.
- Best for: Brand-new equipment purchases at the dealer. Captives compete hardest when they know a third-party lender is also bidding.
Approval Requirements
- FICO: 600+ minimum, 680+ for best rates. Specialty heavy-equipment lenders are flexible if the deal economics are strong.
- Time in business: 2+ years standard. New operators with strong personal credit can sometimes qualify with 25–30% down.
- Mill or wood-yard contracts: Lenders want to see active contracts demonstrating revenue. Sole-proprietor independent logger without contracts is a tougher file than a corporate logger with a Weyerhaeuser or Georgia-Pacific contract.
- Insurance: Workers comp, equipment insurance, general liability. Prior coverage history (claims, premiums) matters.
- Equipment quote: Itemized with model year, hours, attachments, warranty, and any service contract bundled in.
- Financials: 2–3 years business tax returns, 2–3 years personal tax returns, YTD P&L, 3–6 months bank statements.
Structuring Financing Around Logging Seasonality
Most logging operations have 2–3 slower months per year — spring breakup in the North, fire season in the West, wet season in the Southeast. Three financing tactics that work around this:
- Skip-payment loans — some specialty lenders offer 1–3 "skip months" per year baked into the loan structure. Payments lower in operating months to compensate.
- Seasonal payment schedules — lower payments in known-slow months, higher in peak. Less common than skip-payment but available from a few lenders.
- Pair the equipment loan with a working capital line — the line covers payroll and fixed costs during slow months; equipment payments stay on the regular schedule. Cleaner accounting; more flexibility.
Next Step
Get matched with logging-equipment specialty lenders — one application, offers from specialty + OEM captive + generalist sources for skidders, feller bunchers, processors, log trucks, and supporting equipment. For broader context see equipment financing, what lenders look at for equipment approval, and can you finance used equipment.