Crestmont Capital Blog

Equipment Financing for Baling Machines and Compactors

Written by Mariela Merino | September 3, 2025

Equipment Financing for Baling Machines and Compactors

For businesses handling large volumes of waste, recyclables, or packaging materials, investing in baling machines and compactors is essential. These machines reduce waste volume, cut disposal costs, and improve sustainability efforts. However, with prices ranging from $5,000 to $50,000+, purchasing outright can put strain on cash flow.

That’s why many companies turn to equipment financing options to acquire balers and compactors affordably.

Why Finance Balers and Compactors?

  • Lower Upfront Costs – Spread payments over manageable installments.

  • Cash Flow Flexibility – Keep working capital available for operations.

  • Immediate  ROI – Save on hauling, disposal, and labor costs from day one.

  • Ownership Advantage – Equipment loans let you build equity while repaying.

  • Tax Benefits – Loan interest and depreciation may be deductible (check with a tax professional).

Types of Equipment You Can Finance

Vertical Balers – For cardboard, plastics, and smaller spaces.
Horizontal Balers – High-volume solutions for warehouses and manufacturers.
Stationary Compactors – For dry waste at distribution centers and factories.
Self-Contained Compactors – For wet waste at grocery stores, hotels, and hospitals.
Specialty Recycling Balers – Handle textiles, foam, or metals.

Financing Options

1. Equipment Loans

2. Lease-to-Own Programs

  • Lower upfront costs.

  • Ownership transfers at lease-end (often with $1 buyout option).

  • Good for companies looking to build equity.

3. Operating Leases

  • Lowest monthly payments.

  • Return or upgrade equipment at lease end.

  • Best for businesses needing flexibility with technology updates.

4. SBA Loans

  • SBA 7(a)or 504 loans can cover equipment purchases.

  • Longer repayment terms and competitive interest rates.

Example Financing Scenario

A distribution center wants to upgrade waste management with:

  • Horizontal Baler = $40,000

  • Stationary Compactor = $25,000

Total Investment: $65,000

With a 7-year loan at 7%, monthly payments would be around $990.
If the equipment reduces hauling and landfill fees by $2,500/month, the investment pays for itself quickly.

Tips for Securing Financing

✔ Get a detailed quote from equipment vendors before applying.
✔ Bundle multiple machines into one loan for better terms.
✔ Compare banks, credit unions, and equipment finance companies.
✔ Consider maintenance contracts and include them in financing when possible.
✔ Calculate ROI by comparing lease/loan payments to savings from reduced waste costs.

Final Thoughts

Financing baling machines and compactors allows businesses to improve efficiency, reduce operating expenses, and meet sustainability goals without large upfront costs. Whether through loans, leasing, or SBA programs, equipment financing ensures you can access critical waste management tools today while keeping your budget under control.