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Skid Steers Financing: Ways to Help When you Need to Finance a Skid Steer

skid steer financing

When you're in the landscape or construction business, you understand the importance of having reliable equipment like a skid steer loader. These versatile machines can significantly boost your productivity and help you tackle a wide range of tasks with ease. However, purchasing the equipment you need can be a substantial financial investment. That's where skid steer financing programs come into play. However, before entering into any leasing programs it's essential that you understand exactly what's involved and that it's cost-effective. 

The benefits of financing include providing contractors, landscapers, and other workers with a way to spread out the costs of their equipment into manageable monthly payments to alleviate financial stress during slow seasons, while gaining tax advantages.

The Basics of Skid Steer Financing

These versatile pieces of machinery are used in various industries, capable of doing tasks such as dozing, digging, lifting, and snow removal as well as fitting with attachments for even more purposes – an indispensable component of construction, landscaping, and logging industries alike and that should not be underestimated in importance! However, purchasing one may be expensive. This is when business finance or working capital allows you to obtain the necessary funds for acquiring the equipment. It involves borrowing money from a lender or financing company and repaying it over a specific period, often with interest. This way, you can get your hands on a skid steer without paying the full amount upfront.

Different ways to finance a skid steer 

When it comes to this type of lending, there's no one-size-fits-all solution. You have various ways to finance the equipment, and each comes with its own set of advantages and considerations. Let's explore some of the common options:

  • Traditional Bank Loans: One of the most conventional ways to finance skid steers is through a business loan. Banks typically offer competitive interest rates and favorable terms. However, the application process might be time-consuming, and approval may be subject to stringent credit requirements.
  • Equipment Financing Companies: Specialized equipment financing companies understand the construction and landscaping industries. They offer solutions tailored to your specific needs with faster approval processes.
  • Dealership Financing: Typically a local dealer can help you finance new or used equipment. While this can be convenient, it's essential to compare rates and terms with other lenders to ensure you're getting the best deal.
  • Online Lenders: The rise of online lending platforms has made it easier for small businesses to access the financing you need. Online lenders may offer competitive rates, and their application process is often more straightforward than traditional banks.

When financing this type of equipment, choosing an operating lease versus installment sale depends on your unique needs. An operating lease allows you to get the latest machine without tying up cash reserves. This may prove useful during unexpected circumstances. However, one major drawback is that in the end you pay for the equipment without any ownership. 

Financing is often the best solution when purchasing a skid steer. A knowledgeable financial broker will know all your available financing options and help you choose which will be most appropriate for your business needs, while securing you the lowest rate possible. Regular payments on an equipment loan will build your credit score and make future loans easier to acquire.

How long can you finance a skid steer?

The length of time you can finance a skid steer can vary depending on several factors, including the lender, your creditworthiness, and the terms of the loan or lease agreement. Typically, skid steer financing options can range from 24 months (2 years) to 72 months (6 years) or even longer in some cases.

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Qualifying for Skid Steer Equipment Financing

Whether you need a skid steer for landscaping or construction purposes, choosing the best lending option for your business, is of utmost importance. Partner with an experienced financial broker who offers competitive loan or lease terms so as to save time and money while avoiding common missteps that many businesses make when financing equipment.

If you plan to finance through a traditional bank, you must meet certain criteria in order to be approved. These may include being able to demonstrate that your business is stable with on-time payments and consistent revenue streams as well as having the financial means to repay loans or leasing agreements in an expedient fashion.

Another option is working with a lender who specializes in equipment financing. Such lenders offer competitive rates and knowledgeable teams that understand the construction industry. In addition, they can assist with paperwork, insurance, and registration of loans or lease agreements.

Leasing is an ideal solution for businesses that lack the cash necessary to purchase it outright, as well as an effective way to save on taxes and prevent depreciation that would otherwise accumulate over time.

However, this does not eliminate maintenance and repair costs. Proper care must be taken to extend its longevity and avoid expensive repairs down the line.

Lenders will assess various factors to determine your eligibility and to find out what your monthly payments will be. Here are some crucial considerations:

a) Credit History: Your credit history plays a significant role in the approval process. Lenders will review your credit score to assess your creditworthiness. A higher credit score generally leads to more favorable loan terms.

b) Income and Cash Flow: Lenders want to ensure that you have a stable income and sufficient cash flow to make loan payments. Be prepared to provide financial statements and documentation to support your income claims.

c) Down Payment: While some lenders may offer 100% financing, others might require a down payment. Having a substantial down payment can improve your chances of getting approved and may lead to better loan terms.

d) Business Experience: Lenders may consider the number of years you've been in business. A well-established business with a track record of success may be viewed more favorably by lenders.

Tips for Choosing the Right Skid Steer Financing Lender

Finding the right lender is essential to secure the best financing option for your business. Here are some tips to help you choose the right lender:

a) Shop Around: Don't settle for the first financing offer you receive. Take the time to explore multiple lenders and compare their financing rates, terms, and fees. Always seek special offers and any available rebates. 

b) Read the Fine Print: Before signing any contract, carefully read the terms and conditions. Pay attention to interest rates, repayment schedules, and any hidden fees.

c) Consider Reputation: Research the lender's reputation and read reviews from other borrowers. Look for a lender with a history of transparency and excellent customer service.

d) Seek Expert Advice: If you're unsure about the financing process, consider seeking advice from a financial advisor or consultant specializing in construction equipment financing. They can help equip you with the right tools to get equipment fast. 

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Comparing Interest Rates and Terms to Finance your Skid Steer

When comparing different loans, the interest rates and terms are the two most critical factors to consider. Here's what you need to know:

a) Interest Rates: The interest rate is the cost of borrowing money. Lower interest rates can significantly reduce the overall cost of the loan. Be sure to inquire about both fixed and variable interest rate options.

b) Loan Terms: Loan terms refer to the duration of the loan. A longer-term may lead to lower monthly payments, but it could result in paying more interest over time. On the other hand, a shorter-term loan may have higher monthly payments but could save you money on interest.

Hidden Fees and Charges: What to Watch Out For when financing your equipment

While some lenders are transparent about their fees, others may try to sneak in hidden charges. Common hidden fees include application fees, processing fees, and prepayment penalties. Always review the loan agreement carefully and ask the lender about any potential hidden fees on top of the original purchase price.

Understanding whether to take an Equipment Loan or Lease a loader

When applying for financing, you'll also need to decide whether you should lease or buy the new equipment outright. Each option has its own pros and cons, so let's weigh them:

a) Leasing: This allows you to get the equipment you need without owning it. It often requires a lower upfront cost compared to paying cash. Which makes more accessible to businesses with limited capital. Additionally, payments may be tax-deductible as operating expenses and qualifying equipment.

b) Buying: Buying means you'll own the equipment, and once the loan is paid off, you'll have full ownership. This can be a better long-term investment if you plan on using it for an extended period. Moreover, you can build equity in the equipment over time.


Financing doesn't have to be overwhelming. By understanding the various lending options, qualifying criteria, and tips for finding the right underwriters, you can secure the best deal for your business. Whether you choose to lease, buy, or take a loan to finance your next new or used skid steer loader take this guide as your compass and navigate your way to a successful investment!

Remember, financing is an investment in every business. With the right equipment, you can tackle projects efficiently and open the doors to more significant opportunities. So, don't wait—explore your options today and get the best deal for your next equipment purchase.

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