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Financing program

Heavy Equipment Equity Loan

Borrow against excavators, loaders, dozers and skid steers you already own, and keep them on the job while you pay it back.

  • ✓Business-purpose only
  • ✓Keep the machines working
  • ✓Owned outright, or cash-out refinance what you still owe
  • ✓Asset-secured, so credit carries less weight

Quick answer

According to Axiant Partners, a business-loan broker in Boca Raton, a heavy equipment equity loan is business-purpose financing secured by excavators, loaders, dozers or other construction machines you already own. Lenders typically advance 50-80% of forced liquidation value over 24-72 months, and because most yellow iron has no title, they file a UCC-1 lien instead of a title lien. You keep the machines working while you repay.

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A heavy equipment equity loan is business-purpose financing secured by construction equipment you already own: the lender files a UCC-1 lien and advances a share of the machines' liquidation value, while you keep them on the job.

Heavy Equipment Equity Loans at a Glance

50-80%of forced liquidation value, typical advance
24-72 motypical repayment term
UCC-1lien filing, not a title
$25K+where the most lenders compete
Keep workingmachines stay on your jobsite

Typical ranges across lenders, not a quote. Your figures depend on the machines and the business.

There Is No Title on Most Yellow Iron

People search for a title loan on an excavator because that is how a truck works. Construction equipment mostly does not. A dump truck or a lowboy trailer has a state title, and a lender notes its lien on it. An excavator, dozer or wheel loader generally does not, because off-road machines are not covered by state certificate-of-title statutes.

EquipmentTitled?How the lender records its lien
Dump & service trucksYesOn the title (see truck title loans)
Lowboy trailersYesOn the title
Excavators, dozersGenerally noUCC-1 financing statement
Loaders, skid steersGenerally noUCC-1 financing statement
Cranes, graders, backhoesGenerally noUCC-1 financing statement

The practical result is the same: you borrow against the machine and keep using it. The difference shows up in the paperwork - the lender searches and files with the secretary of state rather than the DMV - and in the most common surprise, a blanket UCC lien from another lender that already covers every machine you own.

How a Heavy Equipment Equity Loan Works

  • The machines are valued. From make, model, year, hours, condition and recent auction results - a liquidation figure, not a dealer's price.
  • The lender advances a share of that value. Commonly in the range of 50-80% of forced liquidation value, sized so it stays covered if it ever has to sell.
  • A UCC-1 is filed describing the machines by serial number. Any existing lender is paid off or agrees to its position.
  • You keep working. The equipment stays on your jobsites. Lenders generally require insurance naming them as loss payee, and some require GPS or telematics.
  • You repay over a term - commonly 24 to 72 months - in fixed monthly payments, and the lien is released when the loan is paid.

Not sure what your machines support? Send the make, model, year and hours and get a real number back instead of a guess.

Check My Equipment

What Equipment Qualifies

Lenders want machines with an active resale market, because the resale market is what they are really lending against:

  • Excavators and mini excavators - see excavator financing for what they cost new.
  • Wheel loaders, track loaders and skid steers
  • Dozers and motor graders
  • Backhoes, compactors and telehandlers
  • Cranes and other specialised lifting equipment, case by case

What usually stops a deal: unclear ownership or a machine titled to someone other than the business; a blanket lien that will not be released or subordinated; very high hours with no records; a niche machine with too few buyers; or an open bankruptcy or large unresolved tax lien.

How Much Can You Raise?

The figure comes from the machine, then the business:

  • Hours - the yellow-iron equivalent of mileage, and the biggest single lever.
  • Undercarriage - on tracked machines, remaining track and roller life comes straight off or onto the value.
  • Brand and dealer support - a deeper buyer pool means a higher and faster recovery.
  • Emissions tier - older engines can have fewer buyers, particularly where California's off-road diesel rules apply.
  • What is still owed - comes off the top.
  • Your cash flow - decides how large a payment the business can carry, even when the collateral supports more.

Our guide to what your excavator is worth to a lender walks through each one, and equipment appraisal explains the valuation itself.

A Worked Example

Illustrative arithmetic, not a quote. A contractor owns two machines outright and has a third with a loan on it:

MachineForced liquidation valueOwedAt 65% of FLV, less payoff
Mid-size excavator$96,000$0$62,400
Wheel loader$70,000$0$45,500
Dozer$80,000$38,000$14,000
Total$246,000$38,000$121,900

Pledging all three raises more than any one alone, and the dozer's existing loan is paid off at closing. At an illustrative 12% APR over 48 months, $121,900 works out to roughly $3,200 a month - the number to test against your slowest months, not your best.

Own several machines? Pledging more than one usually means a better structure on the whole package.

See What My Fleet Supports

Equity Loan, Refinance, Sale-Leaseback or Sell?

If the goal is cash and you own the equipment, four structures compete:

OptionYou keep / you raiseBest when
Equity loanKeep the machine and ownership; raise a share of liquidation value; loan paymentYou own it clear
Cash-out refinanceKeep the machine and ownership; raise a share of value less the payoff; loan paymentYou still owe, with real equity
Sale-leasebackKeep using it, give up ownership (usually with a buyout); often raises more; lease paymentYou need the maximum cash
Sell itGive up the machine; raise the full sale price; no paymentThe machine sits idle

The one owners overlook is the last column. A machine that sits more than it works is often worth more sold than borrowed against. See equity loan vs sale-leaseback and equipment refinancing for the detail.

When It Makes Sense, and When It Does Not

It tends to make sense when: you own machines with real equity and need capital for something that earns - a bigger job, a new crew, a down payment on another machine; you are bridging slow progress payments on a contract you have already won; or you are replacing expensive short-term debt such as stacked merchant cash advances with one secured payment.

It tends not to make sense when: the equipment is the business's only asset and revenue is already unstable; the need is small and short enough that a line of credit would serve better; or the shortfall will recur next month regardless. Adding a secured payment to an operation that cannot carry its current payments makes the problem worse.

Compared with an advance, see equity loan vs MCA.

What You Will Need to Apply

  • A list of the machines: make, model, year, serial number and hours
  • Photos of each - hour meter, serial plate, undercarriage, attachments, cab
  • Service records where you have them
  • Payoff letters for anything still financed
  • Proof of insurance
  • Recent business bank statements, typically the last three to six months

Deals in this category move quickly when that list is complete. They stall on liens far more often than on credit, so knowing what is filed against the business before you apply saves the most time. See borrowing with an existing lien.

Have the list ready? One application, real offers, and checking won't affect your credit.

Get Matched

What Happens After You Apply

  1. List the machines. Make, model, year, serial number, hours and photos of each machine you want to borrow against, plus any service records.
  2. Check the liens. Note anything still owed and get payoff letters; know whether a bank, SBA lender or advance provider has a blanket UCC filing on the business.
  3. Get a valuation. A desktop valuation from photos and serials, or an on-site appraisal for larger amounts, establishes liquidation value.
  4. Review the offer. Advance amount, term, payment and any fees, stated against the valuation they come from.
  5. Close and fund. The lender files its UCC-1 (and pays off any existing lender), then funds. The machines never leave your jobsite.

If anything goes wrong later, the lender's remedies are set by the Uniform Commercial Code; what happens if you default explains the sequence and where it can still be stopped.

Sources & Further Reading

Figures above describe ranges commonly seen across lenders and reflect published guidance as of the date on this page. Confirm current terms with the cited source or your lender before acting.

Heavy Equipment Equity Loan FAQs

What is a heavy equipment equity loan?

Business-purpose financing secured by construction equipment you already own, such as excavators, loaders and dozers. The lender files a lien and advances a share of the machines' liquidation value; you keep using them while you repay.

Can I get a title loan on my excavator?

Not in the car-title sense. Most excavators, dozers and loaders are not covered by a state title statute, so there is no title to hold a lien. Lenders secure the loan by filing a UCC-1 financing statement instead. The effect is similar: you borrow against the machine and keep using it.

How much can I borrow against my construction equipment?

A share of what the machines would bring at a quick sale. Lenders commonly advance roughly 50-80% of forced liquidation value, less anything still owed. Hours, undercarriage condition, brand, emissions tier and service records move the valuation.

Do I need to own the equipment free and clear?

No, but you need real equity. If a machine still has a loan on it, the usual structure is a cash-out refinance that pays off the existing lender and advances the rest. If you owe close to what it would sell for, there is nothing to draw.

How long are the terms?

Equity loans against equipment commonly run 24 to 72 months with fixed monthly payments, depending on the age of the machines and the amount.

Can I get one with bad credit?

Often, because the loan is secured by equipment a lender can value and recover. Credit still affects the amount and the price, and an open bankruptcy, unresolved tax liens or disputed ownership can stop a deal regardless of score.

What equipment qualifies?

Construction machines with an active resale market: excavators and mini excavators, wheel and track loaders, dozers, skid steers, backhoes, motor graders, compactors, cranes and similar. Titled units such as dump trucks and lowboy trailers also qualify but are handled through their titles.

How is this different from a sale-leaseback?

An equity loan keeps the machine in your name with a lien against it. A sale-leaseback sells the machine to a lessor and leases it back, which can raise more cash but gives up ownership and can trigger tax on the sale.

Heavy Equipment Equity Loan Guides

Borrowing against excavators, loaders and dozers you already own - what they are worth to a lender, how the lien works, and the alternatives. See all 5 guides.

Find Out What Your Equipment Can Unlock

Start with the value. Tell us what you own and Axiant shows you what an equity loan, a cash-out refinance and the other asset-backed routes would each raise against it, so you can pick the one that frees up the most cash for the lowest cost. One application, real offers, no obligation, and checking won't affect your credit.