Construction Equipment Finance Broker Guide | Broker-in-a-Box

Frequently asked questions

What deal sizes are typical for construction equipment finance?

Construction equipment deal sizes vary widely. Smaller items like skid steer loaders and compact excavators start around $30,000 to $80,000. Larger assets like cranes, excavators, and multi-unit packages can push well past $500,000. The sweet spot for new brokers is the $75,000 to $250,000 range -- large enough to generate strong commissions but small enough that lenders can approve without heavy underwriting layers.

Do lenders like construction equipment deals?

Many lenders view construction equipment favorably because the assets hold their value well and have an active resale market. A three-year-old excavator still has significant liquidation value. That collateral strength makes lenders more comfortable extending credit, even to borrowers with imperfect profiles. However, lenders differ on credit tiers, new versus used equipment, and how they handle seasonal revenue patterns common in construction.

How do I handle seasonal revenue when packaging construction deals?

Seasonal revenue is one of the most common sticking points on construction deals. Many contractors earn the bulk of their revenue between April and November, with slower months in winter. When packaging a deal, include a cover note that explains the seasonality upfront. Show the lender 12 months of bank statements so they can see the full cycle. Highlight the strong months and explain the off-season. Lenders who work construction understand this pattern, but you need to present it clearly rather than let them discover it on their own.

What credit scores do construction borrowers need?

It varies widely by lender and deal size. Credit requirements vary by lender and program. Specialized or credit-challenged lenders will go below 600, but the rates are higher and the terms are tighter. Many small contractors have mid-range credit because they reinvest everything back into the business. Knowing which lenders serve which credit tiers is what makes you valuable as a broker.

Where do I find construction equipment finance leads?

Equipment dealers are the single best source. Caterpillar, John Deere, Kubota, Case, and Volvo dealerships sell equipment daily and need financing options for their buyers. Beyond dealers, target contractor associations, attend local AGC chapter meetings, visit active job sites, and connect with commercial real estate developers who hire subcontractors. General contractors are also a strong referral source because their subcontractors constantly need equipment.