Skid steer financing gives contractors, landscapers, construction companies, and small business owners the ability to acquire one of the most versatile pieces of heavy equipment on the market without depleting working capital. Whether you need a compact skid steer for a landscaping job, a farm operation, or a major construction project, financing lets you put the machine to work immediately while preserving cash flow for payroll, materials, and growth.
This guide covers everything you need to know about skid steer financing: how it works, what it costs, who qualifies, and how to get approved fast with Crestmont Capital.
In This Article
Skid steer financing is a type of equipment loan or lease that provides funds to purchase or use a skid steer loader for business purposes. The machine itself serves as collateral, which typically results in lower interest rates and easier approval compared to unsecured business loans. Lenders advance a lump sum or set up a payment schedule, and the borrower repays over a fixed term - usually 24 to 72 months.
Skid steer loaders range in price from roughly $20,000 for basic used models to over $80,000 for new heavy-duty machines with advanced attachments. Compact track loaders and high-flow models can push even higher. Few contractors pay cash for this type of asset, making equipment financing the standard path to acquisition.
Industry Insight: According to the Equipment Leasing and Finance Association (ELFA), over 79% of U.S. businesses use some form of financing, leasing, or loans to acquire equipment - skid steers and compact loaders are among the top financed assets in the construction and landscaping sectors.
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Apply Now →The process for financing a skid steer is straightforward. You select the equipment, apply for financing, and upon approval, the lender pays the dealer or seller directly. You make fixed monthly payments over the loan term, and once paid off, you own the equipment outright. The skid steer typically serves as collateral throughout the loan period.
For lease structures, you make payments for a defined period and at the end either return the equipment, purchase it at fair market or residual value, or renew the lease. Lease payments are generally lower than loan payments because you're not paying down the full purchase price.
Most lenders follow a consistent process for skid steer equipment loans:
Quick Guide
How Skid Steer Financing Works — At a Glance
There are several paths to financing a skid steer or compact track loader. The right choice depends on how long you plan to keep the equipment, your cash flow situation, and your tax strategy. Here are the primary options available through Crestmont Capital:
An equipment loan works like an auto loan - you borrow a specific amount, repay with interest over a fixed term, and own the machine outright when the loan is paid off. Most lenders offer 100% financing on equipment, meaning you may not need a down payment. Terms typically range from 24 to 84 months. This is the most popular option for contractors who plan to use the skid steer for 5 or more years.
With a lease, you make monthly payments for use of the skid steer without owning it. At the end of the lease, you can buy the machine at its residual value, return it, or lease a newer model. Lease payments are usually lower than loan payments, and some lease structures allow you to upgrade equipment more frequently - ideal for businesses in fast-moving industries. Visit our equipment leasing page for more details.
An equipment line of credit functions like a revolving credit account specifically for equipment purchases. You draw funds as needed and repay them over time. This option works well for contractors who buy equipment regularly throughout the year - you apply once and have ongoing access to capital. Learn more about our equipment lines of credit.
SBA 7(a) and SBA 504 loans can be used to finance heavy equipment including skid steers. These government-backed programs offer competitive rates and longer terms, though the approval process is more rigorous and takes longer than conventional equipment financing. SBA loans are best for established businesses with strong financials that want the lowest possible long-term cost. Explore our SBA loan options.
If you need a skid steer quickly but the equipment itself won't serve as sufficient collateral, a working capital or term loan can fund the purchase. These unsecured or lightly secured loans typically carry higher rates but offer faster approvals. Our working capital loans can fund in as little as 24-48 hours.
Interest rates on skid steer equipment loans vary based on your credit profile, time in business, loan amount, and the lender you work with. Understanding the typical ranges helps you evaluate offers and negotiate better terms.
| Borrower Profile | Typical Rate Range | Typical Term | Down Payment |
|---|---|---|---|
| Excellent credit (700+), 2+ years in business | 5% - 9% APR | 48 - 84 months | 0% - 10% |
| Good credit (640-699), 1+ years in business | 9% - 16% APR | 36 - 60 months | 10% - 20% |
| Fair credit (580-639), startup or limited history | 16% - 28% APR | 24 - 48 months | 15% - 25% |
| Bad credit (below 580), newer business | 25%+ APR or factor rate | 12 - 36 months | 20% - 35% |
Keep in mind these are representative ranges. Your actual rate will depend on the specific lender, the equipment's age and condition (new vs. used), and the overall strength of your application. Working with a broker like Crestmont Capital gives you access to multiple lenders simultaneously, which typically results in better terms than going directly to a single bank.
Pro Tip: New skid steers typically qualify for the best financing rates because the equipment holds its value well and lenders are more comfortable with collateral risk. Used skid steers (under 5 years old) can also qualify for competitive rates, while machines over 10 years old may require a higher down payment or shorter terms.
Skid steer financing is available to a wide range of business types and credit profiles. Unlike traditional bank loans that require perfect credit and years of business history, equipment-specific financing programs - including specialty programs for bad credit and startups - make this type of funding accessible to most contractors.
Most equipment lenders prefer a personal credit score of 620 or higher for standard approval. However, specialty programs for contractors with scores as low as 500-580 are available, though they typically require a larger down payment or additional documentation. Business credit history and revenue verification can sometimes offset a lower personal score.
Traditional lenders prefer businesses with at least 2 years of operating history, but equipment-specific programs are available for businesses as young as 1 year or even startup businesses in some cases. Startups typically need to provide a larger down payment (20-30%) and demonstrate strong personal credit and financial stability.
Lenders typically want to see monthly revenue of at least 1.5x to 2x your proposed monthly payment. For example, if your monthly payment would be $800, you'd generally want to show at least $1,200-$1,600 in monthly revenue. Higher revenue gives lenders more confidence in your ability to repay even during slow business periods.
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Even with bad credit or a new business, we have programs to help you get the skid steer you need. No obligation to apply.
Apply Now →Crestmont Capital is a direct lender and broker with access to over 75 equipment financing programs. When you work with us, we review your situation, match you with the right program, and handle the paperwork - so you can focus on running your business rather than chasing down lenders.
Our equipment financing programs include:
Our construction equipment financing specialists understand the unique needs of contractors - seasonal cash flow, variable project timelines, and the need to move quickly when the right machine becomes available. We are rated #1 in the country for small business lending and have helped thousands of contractors grow their fleets.
For contractors in the construction space, we also offer construction equipment financing for a full range of heavy machines including excavators, bulldozers, cranes, and more. If you need to finance multiple pieces at once, our equipment lines of credit can handle it efficiently.
By the Numbers
Skid Steer Financing — Key Statistics
$20K-$80K+
Typical skid steer purchase price range
24-84 mo
Standard equipment loan terms available
79%
U.S. businesses use financing to acquire equipment (ELFA)
24-72 hrs
Typical funding time at Crestmont Capital
Understanding how skid steer financing works in practice helps contractors plan their approach and set realistic expectations.
A solo landscaper with 18 months in business and a 630 FICO score wants to purchase a new $42,000 Bobcat skid steer. They don't have $42,000 in cash but have solid monthly revenue of $18,000. They apply through Crestmont Capital, receive a 60-month loan at 14% APR with 10% down ($4,200). Monthly payment: approximately $876. With $18,000 in monthly revenue, the payment represents less than 5% of revenue - very manageable. The machine allows them to take on larger commercial landscaping projects, which increase revenue by 30% within 6 months.
A 5-year-old construction company with $800,000 in annual revenue and a 720 FICO score needs to replace an aging skid steer with a $65,000 compact track loader. They qualify for 100% financing at 7.5% APR over 72 months. Monthly payment: approximately $1,119. The old machine gets traded in for $8,000, applied as a down payment, reducing the financed amount to $57,000. The new machine handles larger attachments and increases job site productivity by 25%.
A snow removal contractor needs a second skid steer to handle growing demand in winter months. Revenue is highly seasonal (November through March). They finance a $38,000 used skid steer through a lease structure with seasonal payment options - paying higher amounts during peak months and reduced or deferred payments in summer. This aligns their debt service with their cash flow cycle and protects working capital during slow seasons.
A mid-sized farm operation needs two skid steers for different purposes - one for barn management and one for field work. By using an equipment line of credit rather than two separate loans, they have ongoing access to capital as needs arise. When the first machine is approved, funds are drawn. The second machine is added six months later when a deal emerges. Interest accrues only on drawn amounts.
A general contractor with a 545 FICO score (due to past medical debt) needs a $25,000 skid steer for an upcoming project. Most banks decline the application. Through Crestmont Capital's specialty bad credit equipment financing program, they secure approval with a 25% down payment ($6,250) and 36-month term at a higher rate. The machine generates $4,000/month in new project revenue, paying for itself within 7 months.
An equipment rental company wants to add three skid steers to their rental fleet. Using equipment financing, they purchase three machines at $35,000 each ($105,000 total). At 10% APR over 60 months, monthly payments total approximately $2,228. Each machine rents for $400-600/day, generating combined rental revenue of $8,000-$12,000/month when fully utilized - providing strong ROI on the financing.
The right acquisition strategy depends on your business model, cash position, and how long you plan to use the equipment.
| Factor | Equipment Loan | Equipment Lease | Buy Outright (Cash) |
|---|---|---|---|
| Ownership | Yes, after payoff | Optional at end of term | Immediate |
| Monthly payments | Moderate | Lower | None |
| Cash required upfront | 0% - 20% | First/last payment | Full price |
| Equipment upgrades | No (must sell/trade) | Easy at term end | No (must sell) |
| Long-term cost | Interest adds 15-40% | Higher if buy at end | Lowest |
| Best for | Long-term ownership, tax benefits | Short-term, frequent upgrades | Cash-rich businesses, no debt |
For most growing contractors, equipment financing strikes the right balance - you preserve working capital, establish business credit, and acquire productive assets without the massive upfront cash commitment. The equipment generates revenue while paying for itself, which is exactly how smart businesses use leverage.
Finance the Right Way — Talk to an Expert
Our equipment financing specialists work with contractors every day. Let us find the right structure for your skid steer purchase.
Apply Now →Most standard equipment lenders prefer a minimum credit score of 620-640. However, specialty programs through Crestmont Capital are available for borrowers with scores as low as 500-580, typically requiring a larger down payment of 20-35%. The equipment itself serves as collateral, which gives lenders more flexibility than with unsecured loans.
Yes, used skid steer financing is widely available. Most lenders will finance machines up to 10-15 years old, depending on the condition and resale value. Newer used machines (1-5 years old) typically qualify for rates nearly as good as new equipment. Older machines may require a higher down payment or carry slightly higher rates. We recommend having any used machine inspected before purchase.
For equipment loans under $150,000, Crestmont Capital typically provides same-day or next-day approval decisions. Funding - the actual transfer of money to the dealer - usually occurs within 24-72 hours after signing the loan documents. Larger transactions or applications with complex financials may take 3-5 business days.
Not necessarily. Many lenders - including programs available through Crestmont Capital - offer 100% financing with no down payment required for qualified borrowers. Typically, business owners with strong credit (680+) and at least 2 years in business qualify for zero-down options. If your credit is lower or your business is newer, a down payment of 10-25% may be required.
Yes, startup equipment financing programs exist specifically for new businesses. They typically require a personal credit score of 680 or higher, a down payment of 20-30%, and may ask for a business plan or additional financial documentation. The personal credit of the business owner carries more weight when business history is limited.
A loan results in ownership of the machine once the loan is paid off - the skid steer becomes a business asset on your balance sheet. A lease means you pay for the right to use the machine during the lease term; at the end, you can purchase it at residual value, return it, or lease a newer model. Lease payments are typically lower, but you don't automatically own the machine at the end.
For applications under $100,000, many lenders use a streamlined "app-only" process requiring just your basic business information and social security number for a credit check. For larger amounts, you typically need 3-6 months of bank statements, a business license, and potentially 1-2 years of tax returns. The equipment quote or invoice from the dealer is also required.
Virtually all skid steer types qualify for equipment financing: wheeled skid steers, compact track loaders (CTLs), mini track loaders, and high-flow skid steers. Brand doesn't matter - Bobcat, Caterpillar, John Deere, Case, Kubota, Volvo, and others all qualify. Attachments (buckets, forks, augers, etc.) can often be bundled into the same loan if purchased at the same time as the machine.
Yes, in most cases attachments can be included in the same equipment financing package. Buckets, pallet forks, augers, brush cutters, snow blades, and other attachments purchased at the same time as the skid steer can typically be bundled into a single loan. Some lenders also offer standalone attachment financing if you're adding to an existing machine.
If you miss a payment, the lender will typically charge a late fee and report the missed payment to credit bureaus after 30 days. If payments continue to be missed, the lender can initiate repossession of the equipment since it serves as collateral. Most lenders will work with you on payment deferrals or restructuring if you contact them proactively before missing payments - communication is key.
Equipment financing can help build your business credit profile if the lender reports to business credit bureaus like Dun & Bradstreet, Equifax Business, or Experian Business. Making consistent, on-time payments is one of the most effective ways to build a strong business credit score. Over time, this can qualify your business for higher credit limits and lower interest rates on future financing.
Many equipment loans allow early payoff without penalty, though some have prepayment fees - especially in the first 1-2 years. Always review the loan agreement for prepayment terms before signing. If you plan to pay off the loan early, look for loans with no prepayment penalty or ones where the penalty phases out after a certain period.
Yes, sole proprietors and owner-operators can qualify for skid steer equipment financing. In many cases, your personal credit score plays a larger role since you are the business entity. Strong personal credit (620+), demonstrated business income through bank statements or tax returns, and the equipment itself as collateral make sole proprietor approval achievable even without formal business credit history.
Monthly payments vary based on the machine price, loan term, and interest rate. As a rough estimate: a $40,000 skid steer financed at 10% APR over 60 months would have monthly payments of approximately $850. A $60,000 machine at 8% over 72 months would be approximately $940/month. Use online loan calculators or contact Crestmont Capital for a personalized payment estimate based on your specific situation.
All major skid steer brands qualify for equipment financing: Bobcat, Caterpillar (Cat), John Deere, Case, New Holland, Kubota, Volvo, Doosan, Gehl, and Mustang, among others. Lenders are brand-agnostic - they care about the equipment's age, condition, and resale value rather than the specific manufacturer.
Yes, equipment refinancing is possible if your credit has improved since the original loan, if interest rates have dropped, or if you need to lower monthly payments by extending the term. Lenders will assess the current value of the equipment, remaining loan balance, and your current creditworthiness. Refinancing can reduce your monthly payment and free up cash flow for other business needs.
Skid steer financing gives contractors, landscapers, and small business owners an efficient path to acquiring productive equipment without draining working capital. With competitive rates starting around 5-9% for qualified borrowers, terms up to 84 months, and programs available even for those with lower credit scores, equipment financing is the practical choice for most businesses.
Whether you're purchasing your first skid steer, upgrading an aging machine, or adding to an existing fleet, Crestmont Capital can help you find the right program and get funded fast. Our team works with over 75 lenders to match you with the best possible terms based on your specific situation.
Ready to take the next step? Apply for skid steer financing today and put your new machine to work for your business.
Disclaimer: The information provided in this article is for general educational purposes only and is not financial, legal, or tax advice. Funding terms, qualifications, and product availability may vary and are subject to change without notice. Crestmont Capital does not guarantee approval, rates, or specific outcomes. For personalized information about your business funding options, contact our team directly.