Published: ·Last updated: ·By Ed Freeman, Capital Advisor. PeerSense
What is the best financing for construction equipment at Up to 100% (equipment as collateral) LTV?
Construction companies can finance heavy equipment through SBA 504 loans (6.0 to 7.5%, 10 year fixed), conventional equipment loans (6 to 10%), or equipment leases (6 to 12%). SBA 504 provides the lowest rates for equipment with 10+ year useful life, while conventional equipment loans offer faster closings and leases preserve balance sheet capacity for bonding purposes.
Published by PeerSense Capital Advisory · Written by Ed Freeman, Founder
Heavy Equipment Financing for Construction
Finance excavators, cranes, dozers, and heavy construction equipment with SBA 504, equipment loans, or leases. Rates from 6%, terms up to 10 years, and preserve working capital.
Minimum 30-35% equity required. Construction companies with 2+ years operating history, established revenue, and a need for excavators, cranes, loaders, dozers, concrete equipment, or other heavy machinery.
Deal Parameters at a Glance
LTV Target
Up to 100% (equipment as collateral)
Est. Rate Range
6% to 12%
Term
3-10 years
Recourse
Full recourse (equipment loans) / Off balance sheet (leases)
DSCR
1.20x minimum (business cash flow)
Closing Speed
7-30 days
Min Loan Size
$50K
Loan Products
SBA 504, Equipment Loan, Equipment Lease
Indicative only, as of October 1, 2026. Not a quote, commitment or offer of credit. Final pricing, leverage and terms are determined by the lender at underwriting, after full transaction materials are reviewed. PeerSense sources the file. The lender sets pricing. What these terms mean.
When Is This the Right Fit?
Equipment financing is right when your construction company needs to acquire heavy machinery without depleting working capital or bonding capacity. Use SBA 504 for major equipment purchases ($250K+) with 10+ year useful life to lock in the lowest rates. Conventional equipment loans work best for mid size purchases ($50K to $500K) needing fast execution. Equipment leases are ideal when preserving bonding capacity is critical, lease payments are operating expenses that do not reduce your balance sheet equity. If you are purchasing both equipment and the facility to house it, combine SBA 504 real estate and equipment financing in a single structure.
Want the full program overview, current rate sheet, and underwriting matrix? See the SBA Loans guide →
Key Benefits
Strategic Alternatives
65% LTV Industrial Owner User Financing
If you need to finance a construction yard or shop building alongside equipment
Learn moreWorking Capital Line of Credit
If you need working capital for project mobilization rather than equipment purchase
Learn moreSBA 7(a) to 504 Refinance
If you hold variable rate equipment loans you want to convert to fixed SBA 504 rates
Learn moreFrequently Asked Questions
See Related Rates by Program
PeerSense covers the full commercial capital stack. These are indicative levels direct capital sources have been pricing across these programs as of October 1, 2026.
Originator warehouse
$100M a monthFocus $100 million a month. Will look at $10 million a month. $10 million is not the focus.
Invoice Factoring
0.5 to 3.5% / 30dB2B invoices from $20 million a month. Advance 80 to 95 percent of face.
CMBS Conduit
5.60 to 7.10%10 year Non Recourse fixed, $10 million and up, fully assumable
Bridge Loans
9.00 to 14.00%$10 million and up. Cash in about 35 percent. Name the takeout first.
Data Center
CRS to 89%$1 billion to $30 billion plus. Signed or guaranteed hyperscaler lease.
Contracted revenue sale
Up to 89%15 year lease signed or guaranteed by a hyperscaler. Size follows the lease.
Hotel Financing
SearchHotel financing is search only for $10 million and up, with cash in about 35 percent.
Private Credit
7.80 to 18.00%Non bank flexibility for commercial real estate at $10 million and up.
DSCR Investor
SearchSearch path. Portfolio and multi property DSCR of $10 million and up.
Indicative only, as of October 1, 2026. Not a quote, commitment or offer of credit. Final pricing, leverage and terms are determined by the lender at underwriting, after full transaction materials are reviewed. PeerSense sources the file. The lender sets pricing. What these terms mean.
Connect with PeerSense, Direct Capital Advisory
PeerSense pre underwrites every deal before presenting it to our institutional capital sources. With a curated network of lender relationships and live market rate intelligence, Talk to PeerSense about your construction equipment deal with the right capital source, right now.
Fee at closing only · Complimentary initial consultation
Published by PeerSense Capital Advisory · Written by Ed Freeman, Founder. Updated September 2026.
Disclaimer: The information on this page is provided for educational purposes only and does not constitute financial, legal, or investment advice. Rates, terms, and availability are subject to change based on market conditions, property characteristics, and borrower qualifications. The rate ranges cited reflect approximate market pricing as of September 2026 and may not reflect current conditions at the time of reading. PeerSense sources capital through a curated network of commercial lenders and capital sources. All financing is provided by third party lenders subject to their own underwriting criteria and approval processes. Borrowers should consult with qualified financial and legal professionals before making any financing decisions.