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Investing in the right machinery is the fastest way to scale your contracting business, but paying full cash upfront can drain your liquid capital. LMS Equipment provides tailored heavy machinery financing solutions to help you secure top-tier equipment without sacrificing your cash flow. Navigating the choices between loans, leases, and repayment timelines is simple when you know how lenders structure these agreements.
The choice between an equipment loan and a lease comes down to whether you want long-term asset ownership or lower monthly commitments.
An equipment loan operates like a traditional vehicle purchase where you borrow the capital, buy the machine, and own it entirely once the final payment is cleared. This path is ideal if you plan to use the machinery for a decade or more.
Conversely, a heavy equipment lease functions more like a long-term rental with distinct financial advantages. Leases often require lower down payments and protect you from machine depreciation. At the end of the term, you can typically buy the unit for a fraction of the cost, return it, or upgrade to a newer model. If you prefer temporary options or want to test specific models before buying, exploring our rental options is another excellent route.
Most lenders finance heavy machinery for 24 to 84 months, with 60 months serving as the standard industry average.
The exact length of your contract depends heavily on the lifespan of the asset. A brand-new excavator might easily qualify for a 72 or 84-month term because it will remain highly productive for years. A used skid steer might be capped at 36 or 48 months because lenders want the loan paid off well before the machine requires major overhauls.
Your business health also influences these timelines. Strong credit scores, multiple years in business, and solid revenue statements allow lenders to offer extended repayment windows. This lowers your monthly overhead and keeps your operational costs predictable.
Securing favorable terms requires presenting a clean financial profile that proves your business can support the monthly investment.
Lenders generally look for a credit score above 650, at least two years of continuous business history, and bank statements showing steady revenue. If you are a newer contractor, you can still secure approval by providing a larger down payment or offering alternative collateral to reduce the lender risk.
We make the onboarding process seamless. You can review your choices and start your application directly through our finance portal. Gathering your financial documents early ensures a rapid approval process so you can get your new assets out to the job site without delay.
Partnering with an experienced provider ensures you get the exact machinery you need under terms that support your bottom line. Reach out to our team to build a customized plan for your business growth.