What Do I Need to Finance Construction Equipment?

Before you submit your application, it can help to understand what most financial institutions will look at before approving construction equipment loans. The quality of your financing services and the overall result of your investment will depend largely on your choice of financing company.

Most lenders will look at three main categories when it comes to the worth of their borrowers, including:


Equipment financing with bad credit can prove to be a stressful endeavor, especially when the terms offered do little to benefit your bottom line. Owners with bad credit and companies with less time in business can suffer from higher interest rates and the possibility of other payment penalties. Your personal FICO credit score ranges between 300 and 850, and plays a role in determining your ability to secure financing for a variety of purchases.

Business credit is different from personal credit, but must be focused on to help make business financing easier in the future. Ranging from 0 to 100, this number is essential for lenders, as it represents your likelihood of repayment. If you’re worried about how your business score will affect your chances of securing beneficial equipment financing, then be sure to do your research and make improvements

Income and Statements

Your credit score will not be the end-all when it comes to construction equipment financing, especially if your business has the cash flow to make payments on time. In most cases, financial statements and your average income will help to overcome any concerns with your FICO number. Conversely, not having a strong income may negatively impact your ability to finance heavy equipment.

Available Down Payment

One way to mitigate the costs and risks for your construction equipment financing is to offer a larger down payment at the time of purchase. By putting more money down, you can lower the sum needed for financing, increasing the odds of achieving payments you can afford. If your FICO score has resulted in a higher interest rate, increasing your down payment toward principal can help to lower costs both now and throughout the life of your loan.

Comprehensive Heavy Equipment Financing

Projects are always changing, making it important for construction companies to keep on the cutting-edge of technology, techniques, and machinery in order to succeed. If you’re looking to start your company off right, replace an essential piece of equipment, or are hoping to expand your inventory, our construction finance specialists can help!

10-4 Financing is here to serve as your reliable source for financing construction equipment both now and in the future. Our team has the relationships and expertise to deliver the most advantageous terms for borrowers with histories of all types. We can help secure advantageous financing for heavy equipment of all types, including:

  • Concrete equipment
  • Bulldozers
  • Skid steers
  • Excavators

  • Drills
  • Grinders
  • Generators
  • Compressors

  • Cranes
  • Forklifts
  • And more

Known Tax Benefits

10-4 Financing strives to provide affordable and effective services for all of our customers, and will discuss all applicable benefits associated with commercial equipment financing. One way to enhance your financial success this year is to plan accordingly for the taxes associated with construction equipment financing. The tax year of 2019 allows businesses to deduct the full cost of equipment up to one million dollars. Beyond this deduction limit, Section 179 also offers a spending cap on businesses at $2.5 million dollars, incentivizing small businesses to make much-needed purchases below the deduction amount.

Depreciation does not often have a positive association, but when it comes to taxes for construction businesses, reporting depreciation on financed heavy equipment yearly can help to save money over the life of the machinery. Businesses planning on acquiring new equipment can take advantage of this process to achieve major savings, further boosting their bottom line.