Looking to start a business or expand your business, but you’re worried your credit is too bad to get it done? If so, don’t worry, there are options for bad credit construction equipment financing and leasing. Thank goodness there are options, because according to finimpact.com In the second quarter of 2021 only 13.6% of loan requests were approved by big banks leaving 86.4% disappointed and wondering if there are options for them to get financing. We’ll talk about some of the options here. In terms of the bad credit construction equipment financing options available we’ll talk about a few, but put the toughest scenarios first.

For the most part, you’re most likely to find an equipment leasing option rather than a traditional loan. If you’re worried about equipment ownership at the end of the term, don’t worry. There are many ways to structure a lease. Many of which allow you to take ownership of the construction equipment at the end of the lease financing term.

Also, since we work as a broker, we’re connected to MANY lenders. If we don’t talk about your exact scenario here, please inquire. We may have options.

Please contact us at Info@TheBroker.Finance for more info about bad credit construction equipment financing or at (714) 271-8524.

Construction Equipment Financing with Bad Credit Option 1

This option allows you to finance or lease your construction equipment even with the worst of credit scenarios. In fact, the credit score doesn’t matter. Since the credit is likely to be highly damaged, this option requires skin in the game from the construction business owner (aka collateral). At one point in time, this option required a collateral at a 1 to 1 ratio. For example, you’d have to put up 50% of the purchase price of your equipment as collateral……..or a 50% down payment. Either way, the equipment had to be collateralized at a 1 to 1 ratio.

At this point in time in 2022, the market is a little more favorable and for scenarios like this. Therefore, you can get away with as little as 25% – 40% collateral backings or a down payment in the 25% – 4-% range. For the most challenged credit, construction equipment financing with bad credit would still require a 1 to 1 ratio.

So, if you have the ability to come up with collateral OR a down payment as mentioned above, we may be able to help you finance your construction equipment.

Here is Short list of challenges we can work through (as long as you have the down payment / collateral requirement met:

  • Prior bankruptcy
  • Tax Liens
  • Judgements
  • Equipment Repossessions
  • Slow Pays
  • Low or no credit scores
  • High revolving debt
  • Start-ups and businesses in business for less than 2 years
  • Owner Operator truckers
  • Private party sale

Please contact us at Info@TheBroker.Finance for more info about bad credit construction equipment financing or at (714) 271-8524.

Construction Equipment Leasing with Bad Credit option 2

Keep in mind we work with a ton of lenders since we operate as a business finance broker. However, here is a basic rundown of a tier II type construction equipment financing option and requirements”

  • Application only to $150,000
  • FICO minimum of 600+
  • Terms up to 72 months
  • 2+ years time in business requirement
  • No open liens, BK’s, or judgements

Remember, these are some basic guidelines. We want to hear your story, so we can convey it to our lenders and get you funded with the best possible terms.

Bad Credit Construction Equipment Financing option 3

The tier 3 option is for business owners that fit in the more lax guidelines below. Additionally, it may help to get the story and see if it’s a deal that makes sense, but maybe not with the BEST credit and business scenario. Basic tier 3 construction equipment financing requirements:

  • Application only to $75,000
  • Terms up to 60 months
  • 600 FICO recomendation, but can go lower (and remember, we can always go lower with a big enough down payment or collateral infusion)
  • 2+ years time in business

Another Bad Credit Construction Equipment Financing Option for Those with No Large Down Payment or Secondary Collateral

Not everybody has secondary collateral or a 25-50% down payment to finance construction equipment with really challenged credit. If that is you, BUT you’ve been in business for 4 – 6 months or more, but you’re still considered a start up by bank terms (in business for less than 2 or 3 years), there may be another option. That option is a revenue based funding solution. If you’ve had steady incoming revenue for at least 3 months, this may work for you. Learn more here –> www.BusinessCapital.Biz

Equipment Financing & Equipment Leasing Industries Served

The title of this post makes it clear. We finance construction equipment. However, we also serve many other industries for equipment leasing and financing as well as business working capital. In fact, we now have 4-7 lenders that will help you finance cannabis equipment.

Here’s a list of what we can finance:

  • construction equipment
  • over the road trucking
  • cannabis equipment
  • CBD business equipment
  • HEMP business equipment
  • Medical equipment
  • Food Processing / Food Manufacturing Equipment
  • Fabrication and woodworking
  • Thermoforming
  • Packaging
  • Machine Tool
  • Government and Municipal
  • Presses
  • Fixtures
  • Computers
  • Software
  • Dental equipment
  • Duplicating equipment
  • Yellow Iron

We have a long list of lenders. Therefore, If you do not see your scenario mentioned here, we encourage you to reach out anyway. Perhaps we can help.

Please contact us at Info@TheBroker.Finance for more info about bad credit construction equipment financing or at (714) 271-8524.

photo on the broker business finance website of a man in a hard hat at a construction site

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