How Construction Equipment Financing Works
The right machines make jobs easier and safer. But new equipment can be expensive. Construction equipment financing helps you spread out payments over time so you can buy the machines you need.
What Is Construction Equipment Financing?
Financing means securing a loan or lease to pay for a machine.
Loan: You borrow money, buy the machine, and pay it back with interest over time.
Lease: You pay monthly to use the machine but don’t own it. At the end of the lease, you can return it or buy it.
Leasing is great if you want to try a machine before buying.
Learn more about planning equipment expenses in this guide on construction budget planning.
How to Apply
To get financing, you typically need to provide the following info:
- How much money your business makes and owes
- How long you’ve been in business
- Paperwork like ID, bank statements, and tax returns
Once you apply, the lender checks your credit. Approval usually takes a few days.
What If You Have Bad Credit?
A bad credit score doesn’t mean you’ll be denied. Lenders may still approve financing if:
- You provide a down payment
- Your business is profitable
- You’re ok with the machine being used as collateral
Learn more about reducing risk in this guide to rental advantages for risk control.
Financing Tips for Small Businesses
Small companies don’t always have the financial cushion of larger firms. Financing spreads out equipment costs while still giving you immediate access to machines. Predictable monthly payments also make budgeting easier and help stabilize cash flow.
See how financing and rentals improve workflows in this post on increasing operational efficiency.
Renting Instead of Buying
Renting equipment from The Cat® Rental Store is a smart way to avoid long-term commitments. It lets you access machines for short-term jobs without the financial risk of ownership. The Cat Rental Store offers a wide range of reliable, well-maintained equipment with flexible terms.
Contact The Cat® Rental Store
For short-term construction equipment needs, the Cat Rental Store provides dependable rentals backed by expert support. Browse our full inventory or connect with your local dealer to request a rental quote today.
FAQs About Construction Equipment Financing
What’s the difference between a loan and a lease?
A loan leads to equipment ownership after repayment; a lease gives you temporary use of the equipment with the option to buy later.
Can I get financing with bad credit?
Yes. Lenders may approve with collateral, down payments, or proof of improving revenue.
When should I consider renting?
Renting is ideal for short-term or occasional projects where ownership doesn’t make financial sense.
