How to finance an excavator, skid steer or loader

To finance an excavator, skid steer or loader, get a quote for the machine, then apply with a funder that understands construction and landscaping work. The funder looks at your revenue and time in business, structures the financing, and pays for the machine so you can put it to work. With Royal Funding Group, approvals come in hours and funding arrives the same day.

Why owners finance heavy equipment

Heavy equipment is expensive, and most construction and landscaping companies need their cash for payroll, fuel, materials and the gap between finishing a job and getting paid. Paying for a machine out of pocket can leave you short at exactly the wrong time.

Financing lets the machine start earning right away. A new skid steer means you can stop renting, take on grading and site prep jobs, and move crews faster. The payments come out of the revenue the machine helps bring in.

Step 1: Pick the machine and get a quote

Know what you are buying before you apply. Decide on size, attachments and whether you want new or used. Get a written quote or invoice from the dealer or seller with the make, model, year, hours and price.

Used heavy equipment is common and often smart. A well-maintained excavator with reasonable hours has years of digging left. Have the machine inspected before you buy, and keep the inspection notes.

Step 2: Know your numbers

Funders want to see that your business can carry the payment. Before you apply, have a clear picture of:

• Your average monthly revenue
• How long you have been in business
• Your current debts and payments
• Your upcoming work: signed contracts, bids out, seasonal patterns
• Your credit, both personal and business

RFG looks at the whole business, not only the owner’s score. A construction company with steady deposits and a full schedule is a strong applicant even if the owner’s credit is not perfect. Pull your own credit before you apply so nothing on the call surprises you.

Step 3: Choose the right structure

Heavy equipment can be funded several ways, and the right one depends on the size of the purchase and your plans.

Equipment financing. The machine is paid for and you repay over a set term. The equipment typically backs the deal.

Term loan. For large equipment, a term loan of 12 to 48 months gives you a lump sum to buy the machine outright and spreads the cost over a longer stretch.

Expansion financing. If you are adding several machines, building out a second crew or gearing up for a large contract, expansion financing funds the whole plan, up to $5M.

Working capital. For repairs, a new bucket or attachment, or getting a machine back in service, working capital moves fast with 5 to 12 month terms.

Down payments, term length and payment schedule vary by deal. Your RFG specialist structures the financing with you and shows you the options from our network of funding partners side by side.

Step 4: Apply and get funded

The RFG application takes two minutes. Five quick questions: amount, average monthly revenue, time in business, mobile phone and email. No documents are needed to start. A funding specialist calls you the same day and asks for recent business bank statements by secure link. Approvals come in hours, and funding arrives the same day.

Have the equipment quote ready when the specialist calls. It speeds everything up.

Attachments and add-ons

A machine is only as useful as what it carries. Buckets, forks, augers, breakers, grapples and trailers add up quickly. Ask whether attachments and the trailer to haul the machine can be part of the same financing, so you are not paying for them out of pocket after the machine arrives. Include them on the dealer quote so your specialist sees the full cost from the start.

Things to think about before you sign

• Total payback. Compare the full amount you repay over the term, not only the monthly payment.
• Payment timing. Landscaping and construction can be seasonal. Make sure the schedule works in your slow months.
• Early payoff. Ask whether paying early lowers your cost. Most RFG programs include early payoff discounts.
• Insurance. Expect to insure the machine. Get a quote from your insurer before you buy.
• Rental comparison. Add up what you spend renting the same machine over a year. That number often makes the decision for you.

The funding calculator lets you test payment amounts before you apply.

Who qualifies

RFG funds U.S. businesses with 12 or more months in business. Construction and landscaping companies of all sizes qualify, from owner-operators with one crew to contractors running several. We fund businesses only, not personal purchases. Credit in the 550 to 650 range is a good fit for most programs, and 650+ gets the best pricing and highest limits. See more on how we work with construction companies and landscaping companies.

Get your machine on the job site

If you have a machine picked out and work waiting for it, a Royal Funding Group specialist will structure the financing around your revenue and season so the payments fit. Apply in two minutes or call (929) 506-8133.