Finimpact

Conclusion

Getting construction equipment financing isn’t a difficult process, but you will need to take some time to find the right lender. From online options to brick-and-mortar banks, you can find construction loans at most financial institutions. Take the time to shop around for the best rates, and if you don’t have good credit, take the time to improve it before hitting the “apply” button.

FAQ

How hard is it to get construction equipment financing?
Getting a loan for equipment financing isn’t difficult if you’re prepared. Even poor credit borrowers have lending options. Just make sure you have your financials ready to present, and take the time to look around for a lender that offers terms you’re most comfortable with.
Do traditional banks offer construction equipment loans?
Yes, you’ll find many different big and small bank options for construction equipment loans. Bigger name banks are often the ones that require a higher credit score, while online lenders allow those with lower scores qualify.
What are the closing costs of a construction equipment loan?
Some lenders will charge you a fee for taking out a loan with them. These are often called origination fees, and they vary widely between companies. Many online lenders have done away with these fees though.
Can you finance used construction equipment?
Absolutely. Lenders may ask you if it’s new or used so they can ensure they’re lending you the correct amount of money, but it shouldn’t matter if your equipment is used or new.
What if I buy construction equipment with a loan and it becomes obsolete?
Unfortunately, if you’ve already taken out a loan and the equipment you use has become outdated, you’re stuck with it until you can pay off your loan. That’s why leasing is often a better option than buying for equipment that becomes outdated quickly.
Do small businesses qualify for construction equipment financing?
As long as a small business can provide the necessary information needed to apply for a loan, they should be able to qualify no problem.

About the Author

Christopher Murray

Christopher Murray

Personal Finance Expert

Christopher Murray is a professional personal finance and sustainability writer and editor who enjoys writing about everything from budgeting and saving to unique investing options like SRI and cryptocurrency.

More about me

Related Articles