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 (6.0-7.5%, 10-year fixed), conventional equipment loans (6-10%), or equipment leases (6-12%). 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% - 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
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-$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. Rates and structures across our money pages — updated weekly.
CMBS Conduit
5.60–7.10%10-yr non-recourse fixed, $5M–$500M+, fully assumable
Bridge Loans
9.00–14.00%12–36 mo transitional, SOFR + 470-970 bps, 65-75% LTV
DSCR Investor
5.95–8.50%30-yr fixed rental, qualifies on property cash flow
Equipment Financing
5.50–12.00%Loan, lease, SBA 504, vendor, captive — Section 179 eligible
Hotel Financing
5.85–11.75%CMBS + SBA 504 + bridge + PIP across all flags
Mezzanine Debt
11.00–18.00%Subordinate to senior, $1M–$50M, capital stack fill
Private Credit
7.80–18.00%Non-bank flexibility, unitranche, recap, transitional
Invoice Factoring + ABL
0.5–3.5% / 30dB2B receivables, trucking / staffing / construction / govt
No-Doc CRE
7.50–11.50%Limited-doc commercial, asset-based underwriting
Connect with PeerSense — Direct Capital Advisory
PeerSense pre-underwrites every deal before presenting it to our institutional capital sources. With 500+ lender relationships and live market rate intelligence, we match your construction equipment deal with the right capital source — right now.
No upfront retainer · Fee at closing only · Complimentary initial consultation
Published by PeerSense Capital Advisory · Written by Ed Freeman, Founder. Updated March 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 March 2026 and may not reflect current conditions at the time of reading. PeerSense is a capital advisory firm, not a lender. We do not originate, fund, or service loans. 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.