Heavy Equipment Financing: Rates, Lenders, and How to Get Approved in 2027

By American Business Center | Updated January 2027 | Business Loans

Heavy equipment financing lets construction, agriculture, mining, and industrial businesses acquire expensive machinery — excavators, cranes, bulldozers, agricultural equipment, industrial presses — without paying the full purchase price upfront. The equipment itself serves as collateral, which typically results in lower rates and more accessible qualification compared to unsecured business loans.

Loan vs lease: which is right for heavy equipment?

Factor	Equipment Loan	Equipment Lease
Ownership	You own after payoff	Lessor owns throughout; option to buy at end
Down payment	0%–20%	Often $0 (first/last payment)
Monthly payment	Higher (building equity)	Lower (paying for use, not ownership)
Tax treatment	Depreciation + interest deduction	Full lease payments deductible as business expense
Equipment obsolescence	You bear the risk	Lessor bears the risk (upgrade at end of term)
Balance sheet	Asset + liability (capitalized)	Operating lease: off balance sheet (pre-ASC 842)
Best when	Equipment holds value, long useful life	Technology-dependent, short useful life, or uncertain need

Current rates for heavy equipment financing (2027)

Heavy equipment loan rates vary based on credit score, time in business, equipment type, age of equipment, and loan term:

Borrower Profile	Equipment Age	Typical APR Range
Strong credit (700+), 3+ years biz	New	5.5%–8%
Strong credit (700+), 3+ years biz	Used (under 5 yrs)	7%–10%
Fair credit (650–699), 2+ years biz	New or used	9%–15%
Lower credit (580–649)	New or used	14%–25%
Startup or <1 year in business	New	15%–30%

Top heavy equipment financing lenders

OEM captive financing (best rates for new equipment)

Manufacturer-backed financing programs often offer the best rates for new equipment, particularly during promotional periods. Caterpillar Financial, John Deere Financial, Komatsu Financial, and Case Construction Equipment all offer direct financing, frequently with 0% promotional periods or below-market rates as incentives to buy new equipment from their dealers.

Currency Capital

Specializes in heavy equipment financing specifically. Works with credit scores as low as 600. Equipment loan amounts: $10,000–$5 million. Fast approvals (24–48 hours for under $500K). Good for businesses that need used equipment financing where bank terms are restrictive.

Crest Capital

Equipment loans and leases for new and used heavy equipment. Credit minimum: 650. Business age: 2+ years preferred. Approvals within 24 hours for equipment under $500,000. Longer terms (up to 84 months) for large-ticket equipment.

Wells Fargo Equipment Finance

Traditional bank equipment financing with competitive rates for well-qualified borrowers. Requires 680+ credit, 2+ years in business, strong cash flow documentation. Slower than specialty lenders (1–3 weeks) but significantly lower rates for qualifying borrowers.

What lenders check for heavy equipment loans

Equipment value and age: Lenders will not finance equipment worth less than the loan. Used equipment over 10–15 years old may be harder to finance (or carries higher rates) due to residual value concerns.
Personal credit score: 600 minimum for specialty lenders; 680+ for the best rates
Business history: 2+ years preferred; some startup programs exist through OEM financing
Cash flow: Evidence the business generates enough to service the payment
Down payment: 0%–20% depending on equipment value and borrower profile; more down payment = lower rate

Section 179 and bonus depreciation: the tax math

Purchasing heavy equipment rather than leasing it creates significant tax advantages through Section 179 (immediate expensing up to $1.16 million in 2027) and bonus depreciation (60% first-year depreciation in 2027, phasing down from 100% at 20% per year). A $500,000 excavator purchased in 2027 could generate $300,000+ in first-year deductions under combined Section 179 and bonus depreciation, significantly reducing net cash cost. Consult your CPA for the numbers specific to your situation and tax bracket.

Bottom line

Heavy equipment financing is one of the most accessible forms of business lending because the equipment itself secures the loan, reducing lender risk. For new equipment, start with the OEM's captive financing program — their promotional rates are frequently the lowest available. For used equipment or when OEM financing is not available, Currency Capital and Crest Capital are fast, equipment-specialist lenders with reasonable qualification thresholds.