UK
IRE
AU
CA
US
ZAExpert financial copywriter
Iulia Popescu 
Mr B 
Jodie Marshall Neil Jones 
susan allan Jack Canada Business Leasing Lindsay Jamal Ogungbola Darpan 
Page written by Chris Godfrey. Last reviewed on December 4, 2024. Next review due April 6, 2026.
Excavators – also known as diggers or mechanical shovels – can be some of the most flexible and useful heavy machinery you can get.
Operated by industries as varied as construction, agriculture, forestry and mining, they can be the powerhouse of any business. However, diggers don’t come cheap and paying for this type of heavy machinery with working capital can often be prohibitive. Fortunately, there’s an answer to this problem: Excavator financing. Pay for the equipment as you use the equipment. Give your organisation the machinery it needs without hurting cash flow.
Excavator financing – also known as equipment financing – is a type of business loan used to support the purchase of new or used excavators. This type of financing gives organisations an alternative way to pay for one or more diggers without putting strain on working capital by buying heavy machinery with cash.
If your organisation needs an excavator, you have two ways to get one: You can hire a digger from a heavy equipment rental agency, or you can buy or lease one. While hiring may be best if you only need an excavator for a short period and very rarely, the costs can rapidly add up if you use these machines a lot – easily reaching £5,000 a month depending on the model of machinery you hire. In the mid to longer term, this does not make sense. For businesses that need an excavator regularly or for longer periods, and like the idea of owning the equipment in the future, buying or leasing the machinery is a better way to go.Â
There are two types of excavator financing:
Excavator finance is a straightforward business loan. You make a down payment on the excavator and then pay off the balance of the purchase price, plus interest, with regular payments over a fixed term contract. The digger acts as security for the loan. When the agreement comes to an end, the equipment is paid for and yours to keep.Â
Advantages of an excavator loan:
Disadvantages of excavator loan:
An excavator lease is really a long-term rental agreement. Because you are only financing some of the purchase price, leasing typically has lower monthly payments than a finance/loan. With a lease, you make a down payment and then pay a regular sum plus interest each month to use the digger. At contract end you can either give the excavator back to the lender, renew the lease at a different cost per month, or buy the digger for the fair market value – this is commonly known as a ‘balloon payment’.Â
Advantages of an excavator lease
Disadvantages of excavator lease:
It depends on your business strategy.Â
Choose a loan if:
Or choose to lease if:
Qualifying for excavator financing is determined by three key factors:
Typically, you will need to provide a preliminary bill of sale for each excavator you are seeking to buy or lease. The lender may also ask to see your business bank statements and other financial records. Note that some lenders may set a usage limit – total hours the machinery has been worked thus far – on used diggers. Additionally, it is unlikely that you will be able to get financing if the contract exceeds the estimated useful life of the equipment.
Top tip: Even if you have bad credit, or have been turned down elsewhere, it may still be possible to get the excavator financing you need. Contact Swoop today to discuss your situation with a bad credit expert.
Possibly. If your business has been in business for several years and your credit and financial history are strong, you may be able to finance your next excavator without a down payment. However, newer businesses and those with spotty financial history and weaker credit will typically need to pay an initial deposit. This may vary from being equal to the first one or two monthly instalment payments up to 20% of the purchase price depending on your financial situation.
Excavator leasing rates can fluctuate significantly and are dependent on a matrix of many factors, including:
Additionally, interest rates are constantly changing, and the costs associated with administering your finance will vary significantly from one lender to another.Â
Most lenders will want a minimum personal score of +640, although if you pay a larger deposit, it may be possible to get excavator finance with a score in the mid-500s.
You should shop around for different financing offers before settling on a deal. You can do this by approaching banks, credit unions and online lenders one by one, or you can use the services of a loan marketplace that will introduce you to a choice of excavator financing deals from different lenders. Some marketplace platforms can also give you advice and help you with the application process. This can be especially useful for business owners who have never taken out a dump truck loan before.Â
What you’ll need:
Working with business finance experts can make all the difference when applying for excavator financing. Contact Swoop to discuss your borrowing needs, get help with your application and to compare top-quality excavator financing from a choice of lenders. Get the heavy equipment you need without putting strain on cash flow. Register with Swoop today.
Written by
Chris is a freelance copywriter and content creator. He has been active in the marketing, advertising, and publishing industries for more than twenty-five years. Writing for Barclays Bank, Metro Bank, Wells Fargo, ABN Amro, Quidco, Legal and General, Inshur Zego, AIG, Met Life, State Farm, Direct Line, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of consumer and business finance and insurance.
Swoop promise
At Swoop we want to make it easy for SMEs to understand the sometimes overwhelming world of business finance and insurance. Our goal is simple – to distill complex topics, unravel jargon, offer transparent and impartial information, and empower businesses to make smart financial decisions with confidence.
Find out more about Swoop’s editorial principles by reading our editorial policy.
Get your free Excavator financing quote today
Apply in minutes 
FREE no obligation, personalised quote 
FCA regulated 
Get quote 
We work with world class partners to help us support businesses with finance
Our offices:
Disclaimer: Swoop Finance helps UK firms access business finance, working directly with businesses and their trusted advisors. We are a credit broker and do not provide loans or other finance products ourselves. We can introduce you to a panel of lenders, equity funds and grant agencies. Whichever lender you choose we may receive commission from them (either a fixed fee of fixed % of the amount you receive) and different lenders pay different rates. For certain lenders, we do have influence over the interest rate, and this can impact the amount you pay under the agreement. All finance and quotes are subject to status and income. Applicants must be aged 18 and over and terms and conditions apply. Guarantees and Indemnities may be required. Swoop Finance can introduce applicants to a number of providers based on the applicants’ circumstances and creditworthiness. Swoop Finance Limited is registered with the Financial Conduct Authority as an Account Information Services Provider (reference number 833145). Swoop Finance Limited is authorised as a credit broker under FCA registration number 936513. If you feel you have a complaint, please read our complaints section highlighted above and also contained within our terms and conditions. Swoop Finance Ltd is registered with Companies House (company number 11163382, registered address The Stable Yard, Vicarage Road, Stony Stratford, Milton Keynes MK11 1BN). VAT number: 300080279
yet? Register here!