How does heavy equipment financing work?
Heavy equipment financing works like this: a lender pays for the excavator, dozer, crane, or truck, new or used, and the equipment itself serves as collateral while you repay over a fixed term, typically 24 to 84 months. Because the lender can repossess and resell the machine if things go wrong, approval standards are more forgiving than unsecured loans, and deals run from $5K to $5M+. For construction, logging, agriculture, and transport businesses, this is usually the most accessible way to put six-figure iron to work without draining operating cash.
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Last updated · Reviewed by Cody Dreis
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The mechanics, from quote to delivery
Step 1: get the equipment quote: Lenders finance against a specific machine: dealer invoice or private-party purchase agreement, including model, year, hours, and price.
Step 2: underwriting weighs the asset and the business: Because collateral does heavy lifting, lenders look at the equipment's resale value alongside your revenue, time in business, and credit. Strong, liquid collateral (a late-model excavator) can offset a weaker credit file; specialized or high-hour machines get more scrutiny.
Step 3: terms get set: Rates commonly run about 7%-20% depending on credit, the equipment, and term length. Terms of 24-84 months are typical, usually matched to the machine's useful life. Down payments vary: stronger files sometimes finance 100%; others put some money down.
Step 4: the lender funds the seller directly: You take delivery; the lender files a lien on the machine; you make fixed monthly payments. Once paid off, the lien releases and the equipment is fully yours.
Used heavy equipment is absolutely financeable: lenders simply price for age, hours, and resale demand.
Financing options for heavy iron
Equipment financing: $5K-$5M+, new and used, 24-84 month terms, equipment as collateral. Best for nearly every machine purchase.
SBA 504 loans: up to $5.5M for major fixed assets, with effective fixed rates typically in the 5-7% range (May 2026 debenture: 4.82%). Best for very large equipment packages when you can absorb a slower process.
Business lines of credit: $10K-$250K+ revolving. Best for attachments, repairs, and the working capital that keeps machines running.
Industry-specialty lenders: Quordx Capital's network includes lenders focused on construction and transportation who understand the assets and the seasonality.
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How Quordx Capital Works
With the equipment quote in hand, you complete a 5-minute application and upload bank statements and ID. Quordx Capital's matching process matches your deal, machine, amount, credit profile, against 50+ lenders, including equipment specialists, and surfaces the 3-7 most likely approvals ranked by probability. Most decisions return within 24-48 hours, and funding typically completes in 3-7 business days.
What to Expect
Even with imperfect credit, the collateral often carries the deal: expect realistic approvals at honest rates rather than a flat no. Every offer's rate, term, and total cost is disclosed up front, and if a particular structure doesn't suit the machine or your cash flow, Quordx Capital will say so. The matching service costs you nothing and creates no obligation.
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Written by
Cody Dreis
Founder, Quordx Capital
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Quordx Capital is a business funding broker, not a lender. Lenders make every credit decision and set the rate, fees and terms, and not every business qualifies. Quordx may be paid by a lender when a deal funds. Full disclosures