The main options
- Equipment loans. You borrow to buy the machine, and the machine itself is usually the collateral. You own it, with a lien held by the lender until it is paid off.
- Leasing. You pay to use the machine for a term, sometimes with an option to buy at the end. Useful when you want lower payments or plan to upgrade often.
- Dealer financing. Many dealers arrange financing in-house or through partners, which can be convenient but is worth comparing against an outside lender.
What lenders look at
For used equipment, lenders typically weigh your credit and time in business, the size of your down payment, and the machine itself: its age, hours, condition and resale value. Older or higher-hour machines can mean shorter terms or a larger down payment, because the lender is looking at what the machine would be worth if they had to repossess it.
Financing means a lien
This is the part that matters when you later buy or sell. A financed machine has a lien on it until the loan is paid. If you buy a machine that still has an unpaid lien, the lender can have a claim on it even after you pay the seller. Always confirm any lien is cleared before you buy. See our guide on checking title, liens and theft.
Before you finance or buy, check what similar machines actually sell for with the value estimator, and verify the machine is free of liens.
Check a machine before you buy
Enter a serial or VIN for its identity, value, recalls and a due-diligence checklist. Free.
Frequently asked
Can you finance used heavy equipment?
Yes. Common options are equipment loans, leases, and dealer financing. Lenders look at your credit and business, your down payment, and the machine’s age, hours, condition and resale value.
Does financing put a lien on the machine?
Yes. A financed machine carries a lien until the loan is paid off. If you buy a machine with an unpaid lien, the lender can still have a claim on it, so always confirm liens are cleared first.
Is it harder to finance older equipment?
Often. Older or higher-hour machines can mean shorter loan terms or a larger down payment, because the lender weighs what the machine would be worth if repossessed.