The Perfect Guide to Excavator Finance

The Perfect Guide to Excavator Finance

If you are in the business of constructions and is in requirement of an excavator then you must be evaluating whether to get them on a lease or purchase them. There is also the financing alternative which can be considered. In such case, you must calculate your monthly repayments in case you get them on finance.

You are not the only one at this scenario. Many construction companies and professionals go for financing options when they want to buy or lease an excavator machine. They are all trying to figure out the varied questions which arise in the mind about excavator finance.


Here are some basic concepts cleared out to help you clear out all such doubts and concerns about financing for an excavator machine.

Renting vs Buying – which way to go?


The choice of renting or purchasing an excavator completely depends on the frequency of its use in the construction. Consider the following three factors when you make the decision of either renting or buying an excavator:

  • What kind of project will you use the equipment for?
  • How often will you use the equipment?
  • What is your preferred method of excavator finance?

If you are having ready cash in hand, you can simply get to the store and order an excavator. Cost of excavators varies as per its age, usage and model. If you do not possess the upfront cash then you can go for excavator finance.

Advantages of Buying Equipment:

  1. Use it in multiple projects: If you have your own excavator, you can take up more excavation projects in the future. So making one single investment you can increase your business revenue considerably.
  2. Better ROI: Spending thousands of dollars on renting out the excavator equipment makes no sense since you are never the owner.

Advantages of Renting Equipment:


  1. One-time use: Imagine using an excavator for a one time job only It makes no sense to buy a machine for a one time use and hence in this case renting out is a practical option.
  2. Lower Initial Cost: Renting an excavator is cheap and you can pay it in weekly, monthly, or even daily installment schemes instead of having to pay the entire price in a purchase scenario.

Best Excavator Finance

Best Excavator Finance Options:

Here are some of the excavator finance options you can avail:

a) Construction Equipment Finance: In this type of a finance option, the only collateral required is the equipment itself. It is one of the fastest excavator finance method, and normally within 24 hours of applying you get the cash in hand.

b) Construction Business Loans: These are the fastest and easiest loans designed specifically for the construction industry. You can choose between fixed or flexible repayment plans and choose the term of repayment as well.

c) Construction Business Lines of Credit: It is one of the most flexible excavator finance options available. You get an immediate access to large amounts of capital for getting the excavator machine.

How excavator finance benefits you is that it allows you to pay small amounts periodically and once you pay off the entire loan amount, the machine become yours. You can save hundreds and thousands of dollars in this process and earn business revenue at the same time.

Excavator finance will help you get the equipment that you need within a short time, with no extra collaterals and no extensive requirement of documentation. Before diving into the financing option do research the above-mentioned points in complete details. This will help you to decide and zero in the best possible strategy for using and acquiring the excavator for your business.