Best Heavy Equipment Financing Options For Good & Bad Credit

Whether you run a construction business or you’re operating a factory or production line, heavy equipment is an essential part of the business and is often one of the biggest expenses. Chances are, you might not be able to fund the entire cost of that out of pocket. That’s where heavy equipment financing comes in. 

What is heavy equipment financing?

Heavy equipment financing is any form of business financing that allows you to purchase a product outright without having to front the entire cost of the item. 

How does heavy equipment financing work?

You’ll apply for heavy equipment financing like you would for any other standard or online business loan. With this form of financing, the equipment purchase functions as the collateral for the loan. However, a standard business loan can also help you finance your equipment purchase as well. 

What qualifies as heavy equipment?

Heavy equipment refers to heavy vehicles or machinery that are designed to assist with tasks related to construction. This can include large machines, trucks, heavy vehicles and engineering equipment. 

How long can you finance heavy equipment?

You will normally repay the cost of the heavy equipment over its projected lifetime, or the time until the item is no longer useful. With some lenders, you might have to repay everything within just 12 months, while others offer repayment periods as long as 10 years. 

What is the interest rate on heavy equipment loans?

The interest rate on heavy equipment loans is dependent on the lender as well as the borrower’s financial qualifications. However, interest typically ranges from 10.1% to 35.99% on the high end. Some interest rates may also fall outside of this range. 

Are there any tax benefits to heavy equipment financing?

There are several tax benefits for heavy equipment financing. These include Section 179, which gives businesses the ability to deduct the full cost of the equipment by up to $1 million in the first year that it was purchased. 

Borrowers can also write off lease payments and loan interest as business expenses on their tax returns, while another option allows business owners to depreciate the construction equipment every year in exchange for a small tax deduction. 

How to qualify for heavy equipment financing


Your credit is the biggest factor in determining your eligibility for a loan. To secure large amounts of cash, you should have a credit score of at least 620. However, having a score above 680 will help you gain access to large loans at the lowest interest rates. 


Even if your credit score isn’t totally up to snuff, your monthly or annual revenue can still help you get approved for large amounts of funding. Equipment financing in particular is often very cash flow-dependent. 

Down Payment

Sometimes being able to offer a portion of the entire payment can help you secure funding, even with lower revenue and average credit. For example, if you’re looking for funding for a piece of equipment that costs $50,000, and you can front $8,00 for that overall cost, you might be able to secure most or all of the remaining amount. 

Best Option For Heavy Equipment Financing

Currency Capital

Loan Amount: $5,000 – $2 million
APR Range: 6.00% – 24.00%%
Time to Fund: As early as same day
Loan Term: One to five years
How To Qualify: 620+ Personal Credit Score
$120,000+ Annual Revenue
Great Option For: Equipment Financing
Competitive Interest Rates
Click “Check Rates” to apply to Currency Capital

» MORE: Currency Capital Business Loan Review

Other Options For Heavy Equipment Financing

There are a number of providers that can help you secure funding for your next heavy equipment purchase. Let’s take a look at the benefits and downsides of some of those lenders.

Funding Circle

Loan Amount: $25,000 – $500,000
APR Range: 4.99% – 26.99%%
Time To Fund: 10 days on average
Loan Terms: One to five years
How To Qualify: 660+ Personal Credit Score
No Minimum Annual Revenue
Great Option For: Established Businesses, Not Sole Proprietors
Click “Check Rates” to apply to Funding Circle

» MORE: Funding Circle Business Loan Review


  • Funds faster than traditional bank loans or SBA loans
  • Works with a wide variety of business lenders and investors
  • Borrowers have access to multiple lenders with just one application
  • APRs as low as 10.1%
  • Origination fees as low as 0.99%
  • No prepayment penalty


  • Difficult for new borrowers or borrowers with low credit to qualify, with a minimum credit score requirement of 620 and a minimum of two years in business
  • Not a great option for borrowers who need quick access to cash, with an average funding time of around 10 business days
  • Lengthy application process

Credibility Capital

Loan Amount: $10,000 – $350,000
APR Range: 8.00% – 25.00%%
Time to Fund: Typically 7 days
Loan Term: Up to 3 years
How To Qualify: 680+ Personal Credit Score
$250,000+ Annual Revenue
Great Option For: Borrowers With Good Credit
Short & Medium-Term Financing
Click “Check Rates” to apply to Credibility Capital

Crest Capital


  • Access to up to $500,000
  • Repayment terms as long as 74 months
  • No liens or collateral required beyond the equipment financed
  • Applications evaluated within four hours


  • $275 administrative fee
  • Difficult for applicants with average credit to qualify, with a minimum required score of 650
  • Difficult for new businesses to qualify, with a minimum time in business requirement of two years

National Funding


  • High loan amounts of up to $500,000
  • Quick to fund, with funding as soon as the next business day
  • Fixed repayment schedule
  • Easy for new business or businesses with average credit to qualify
  • Works with businesses in several different industries 


  • Potential for APR as high as 30%
  • Weekly or daily repayment schedule
  • Maximum repayment period of 15 months 

» MORE: National Funding Business Loan Review

Direct Capital


  • Access to up to $150,000 
  • Lender offers wide variety of financing products
  • Loans disbursed within just 24 hours 


  • Short maximum repayment term of just 18 months
  • Potential for daily repayments
  • Unclear eligibility requirements and criteria

Leasing vs. Financing Heavy Equipment


  • With leasing, you’re not required to purchase the equipment outright
  • May be easier to qualify for if you have bad credit or are a new business owner
  • Makes upgrading equipment easier, because you own it for a shorter amount of time
  • You don’t have to make a full down payment, like with financing


  • You’re still responsible for the overall cost and maintenance of the equipment 
  • You don’t own the equipment outright, so if it breaks, you still have to pay for it
  • Is sometimes more expensive than just purchasing the equipment


Buying new heavy equipment for your business can be an expensive process, but luckily, the wide variety of traditional and online lenders and financing options makes that process a whole lot easier. In addition, business owners can also take advantage of some pretty steep tax breaks. While financing may look like the best option for some, you should still make sure to evaluate multiple options and offers before making a final decision on the financing option that’s right for your business. 

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