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Page written by Chris Godfrey. Last reviewed on March 2, 2026. Next review due October 1, 2027.
Fast, nimble, go anywhere – mini diggers provide excellent ground support to large-scale excavators and ‘dozers. However, they may be small and light footed, but these machines often have a sticker price that makes buying them with cash impossible. Mini digger finance is the answer to this problem. Get the excavator you need now, pay over time, eliminate the strain on cash flow.
Mini digger finance refers to specialized business loans and leases that organizations can use to obtain the excavating equipment they need. This type of financing is more readily provided by online lenders than traditional banks and credit unions and it can be used to buy new or used machinery.
Firstly, equipment financing – instead of buying for cash – may be a more tax efficient way to obtain the mini digger you need. Secondly, because you’ll only need to make a down payment on the equipment, instead of covering the whole cost upfront, you may be able to buy or lease a better, more expensive and up to date excavator than you could afford with cash.
Also known as mini or compact excavators, mini diggers come in a variety of sizes. The good news is you can finance them all, including:
Additionally, you may be able to bundle a selection of buckets and accessories into your finance deal.
Mini digger finance falls into two general classes – business loans to buy the equipment, and leases that are long-term equipment rental agreements:
Although many types of business loans are suitable for buying excavating equipment, they all work to the same basic format: You borrow a sum of cash and then repay it over time. Interest charges and fees are added to the principal amount you borrow, and the lender retains a lien on the machinery during the term of the loan. At contract end you’ve paid off the loan and you own the digger outright.
Advantages of business loans to buy mini diggers
Disadvantages of business loans to buy mini diggers
Leasing works differently from business loans. With a lease, you’re not buying the equipment, you’re entering into a long-term rental agreement. Depending on the type of lease you choose, (finance lease or operating lease), you may have the option to buy your mini digger at contract end for a pre-agreed sum, (which could be as low as $1 but is typically the residual value of the machine – which means what it’s worth in used condition).
Because you’re not repaying the whole cost of the digger, leasing usually requires lower monthly payments than a business loan. You may also pay a smaller down payment – perhaps equal to one or two month’s repayment instalments.
If you choose not to buy the machinery at the end of the lease, (or you have chosen an operating lease that forbids it), the digger goes back to the lender. You would then need to take out a new lease and obtain new machinery. (Which could allow you to obtain more modern and up to date excavator).
Some lessors (lenders) may give you the option to extend the lease if you prefer to keep the digger but do not wish to pay the residual.
Advantages of leasing mini diggers
Disadvantages of leasing mini diggers
Although every lender will have their own qualifying requirements, borrowers will usually need the following to obtain mini digger financing:
Depending on the type of loan you are seeking, mini digger financing can be complicated. The sums you can borrow, the interest rate you’ll pay and other terms and conditions will vary from one lender to another. It therefore makes sense to shop around 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 immediately introduce you to a choice of equipment financing from different lenders. Some marketplace platforms can also give you advice and help you with the application process. This can be especially useful for borrowers who have never taken out an equipment loan before.
Your personal and business credit scores, length of time in business and other criteria will shape your mini digger finance plan. See the examples below:
Plan A – Financing $20,000 mini digger
5 years in business, excellent personal credit, good business credit
Plan B – Financing $20,000 mini digger
Start-up business, below average personal credit, no business credit
Plan C – Financing $20,000 mini digger
Anytime in business, no recent/poor personal credit, no business credit, no income qualifications
Just because you can’t qualify for standard mini digger finance, it doesn’t mean you can’t obtain the funding you need. Alternative financing options include:
Available from lenders who are part of the US Small Business Administration lender network, SBA microloans can be obtained up to $50,000 in value. Designed for organizations that have difficulty accessing traditional business finance, SBA microloans typically come with more relaxed qualifying rules and can be obtained with FICO scores as low as 500, or even with no credit score at all.
Business grants are free money, they do not have to be repaid if you spend them properly and in most cases, funders do not consider credit scores when considering applications. The good news is, there are thousands of grants available across the US and they are provided by federal, state and local governments as well as foundations, non-profits and other organizations. The downside to this route is the fact that small business grants are usually highly competitive, slow to fund and often come with strict qualifying rules.
No matter if you’re seeking your first mini digger loan or you’re a seasoned borrower, working with business finance experts can make all the difference when applying for funding. Contact Swoop to discuss your borrowing needs, get help with your application and to compare high-quality mini excavator financing from a choice of lenders. Stop scratching the surface for a loan. Dig deep 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 Wells Fargo Bank, Visa, Experian, Ebay, Flywire, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of US consumer and business finance.
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