Can a general contractor finance a used excavator?

Yes — used construction equipment is widely financed. Most lenders cap used-equipment age at 5–10 years depending on type. You'll need a vendor invoice or private-sale purchase agreement with make, model, year, and serial number. Older equipment or highly specialized machines (e.g., tunnel boring equipment) face tighter underwriting and may require a higher down payment.

Does a construction company need to own the equipment, or can it be leased?

Both structures exist. An equipment loan means you own the equipment and build equity; the lender holds a UCC-1 lien until the loan is paid. An equipment lease means the lender owns it and you make payments to use it, with a buyout option at term end (typically $1 or fair market value). Most construction financing today is structured as a loan, not a true lease — read the contract to confirm which you're signing.

What FICO score does a contractor need for equipment financing?

Most non-bank equipment lenders start at 600+ owner FICO for construction equipment. Best pricing (lowest rates, $0 down) typically requires 700+. Sub-600 approvals exist at higher rates and usually require a 10–20% down payment. The equipment's resale value also matters — a generic skid-steer prices better than a specialty-configured rig with thin resale.

Can I use Section 179 on financed construction equipment?

Generally yes. Equipment that is purchased or financed and placed in service during the tax year can qualify for Section 179 expensing and bonus depreciation, even if you're making monthly payments on it. The IRS looks at the date the equipment is placed in service, not whether it's paid off. Confirm specifics with your CPA — Section 179 limits and bonus depreciation rates change annually.

How long does construction equipment financing take to fund?

Most approvals come back in 24–72 hours for files under $150,000 with strong credit. Funding typically follows within 3–10 business days after vendor invoicing is complete — the lender cuts the check directly to the vendor, and the equipment ships to you. Larger tickets ($500K+) may require additional financial documentation and run slightly longer.

Equipment Financing for Construction Businesses — 2026

Construction businesses run a lumpy revenue cycle — heavy mobilization costs at project start, slow progress billings through the middle, and receivables that pay 30–90 days after invoice. That cash-flow structure means tying up working capital in a single equipment purchase is often the wrong move, even for a profitable contractor. Equipment financing solves that: the excavator, the lift, or the skid-steer generates revenue every month while you pay it off over 24–84 months, keeping your operating account available for payroll and mobilization gaps.