Let’s face it, you’re reading this blog because you’re a construction contractor and you’re in need of a loan. Perhaps you’ve already looked into SBAs, lines of credit, and maybe even personal loans. However, because of the nature of your business, you need equipment and you’re wondering whether you should get equipment financing.

And it makes sense, running a business requires equipment, and equipment costs money, but you’re unsure of why you’d get this type of loan along with others.

In today’s economy, there are loans available for just about anything. And for anyone strapped on cash, there are plenty of great options when it comes to lenders. However, it can also be a bit stressful looking at loan options on top of managing a business. You’ll find yourself on websites seeing things, such as business lines of credit, personal loans, franchise funding, SBAs, startups, and more.

So needless to say, it can be a bit overwhelming to research it all and still focus on all of the things you need to do.

And while I think it’s safe to say that you know what equipment financing provides, I’ll give a quick rundown for those who don’t. It’s essentially a loan that can get you anything from vehicles, computers, desks, chairs, and tools for your business. And it can do so with a relatively quick and easy process.

When it comes to equipment financing, though, financial institutions and lenders like to look at the Three Cs: Credit, Cash Flow, and Collateral. When it comes to your credit, they like to see +660 but are willing to look at anything between 680 and 800. For cash flow, they’ll look at monthly/annual revenue as well as time in business. And for collateral, the equipment will be what you lose in case of a default. Remember, though, you only need one of the Three Cs to qualify.

And this begs the question: Should you get Equipment Financing for your construction business? The pros and cons.


The Pros of Equipment Financing for your construction business:

Equipment Financing is probably the easiest type of loan you can get.

In comparison to other loan options, there’s very little paperwork.

If you were to default, the equipment becomes the collateral.

It’s also a tax deductible.

It helps maintain all of your working capital so you can invest your money into others areas.

It’s a great way to build good business credit.

And if you’re consistent and on time with payments, the APR is pretty low.

The Cons of Equipment Financing for your construction business:

Regardless of equipment age or any potential price drops, you still have to pay the full price (plus interest) back the lenders.

The equipment could potentially become outdated by the time you pay off the debts from the loan.

Depending on the lenders, equipment financing could require a substantial downpayment.


In most small business situations, equipment financing is a great loan to take out. However, it’s your choice at the end of the day. Remember, though, it’s a quick and easy loan to get.

Finance Factory factory offers quick and easy equipment loans for construction contractors looking into equipment financing.

Finance Factory has a team of highly trained professionals who guide and educate clients so they can make the best and most informed decisions possible when looking at loans. They help you every step of the way and give you all of the information for your application. Their specialty is making and building relationships between small business owners and vetted lenders while offering great rates and affordable terms for everyone.

Interested in finding funding for your business? Finance Factory would love to help! If you’re looking to fund your business within the next 30 to 90 days for $25,000 to $500,00 and have a credit score of 660 or better, let’s chat! Get pre-qualified right now with our quick-step pre-qualification form! And don’t worry, this will not result in a hard credit inquiry of sensitive information. We just want to learn more about you and your business. Click below to get started!