Skid Steer Financing for Contractors

How do contractors finance skid steers?

Contractors typically use construction equipment financing to purchase skid steers and compact track loaders. Payments are structured to match the revenue the equipment generates. The equipment serves as collateral. Both new and used units may qualify. For general equipment financing, see construction equipment financing. For operating needs, see contractor working capital. For flexible access, see contractor line of credit. For larger capital needs, see construction business loans. Our blog on financing equipment without draining cash covers this in detail.

When do contractors typically need skid steer financing?

Contractors need it when taking on new or larger jobs that require a skid steer. Replacing failing equipment when repair no longer makes sense. Expanding the fleet to handle more projects. Upgrading to compact track loaders or newer models. For repair-or-replace decisions, see contractor equipment repair pressure. For contractor cash flow problems, see our dedicated guide. For equipment emergencies, see our blog on construction equipment repair emergencies.

What financing options do contractors use for skid steers?

Construction equipment financing is the primary option. SBA loans may fit when combining equipment with other needs. Construction business loans may fit larger capital plans. A contractor line of credit might fit smaller purchases. For used equipment, see used construction equipment financing. For loans vs lease, see construction equipment loans vs lease. Matching the product to the purchase improves the fit.

When does each funding option make sense?

Equipment financing fits skid steer purchases. SBA loans may fit when combining with real estate. Business loans fit larger capital needs. A line of credit might fit smaller purchases. The right choice depends on the amount and your overall plan. If you need to explore options, you can see what funding options may be available.

Skid steer vs compact track loader financing

Skid steers and compact track loaders (CTLs) are often financed under the same equipment financing umbrella. CTLs use tracks instead of wheels, offering better traction in mud and soft ground. Both are versatile—excavation, grading, material handling, attachments. Lenders typically treat them similarly: the equipment secures the financing, and terms depend on new vs used, value, and borrower profile. If you are deciding between a skid steer and a CTL, financing considerations are similar; choose based on job site conditions and use case.

New vs used skid steer financing

Both new and used skid steers can be financed. New units often qualify for longer terms (60–72 months) and full advance rates. Used units may have shorter terms (36–48 months) and lower advance rates. Lenders assess age, hours, condition, and resale value. A three-year-old skid steer with 2,000 hours may qualify; a ten-year-old machine with 8,000 hours may have limited options. For used equipment generally, see used construction equipment financing. For loans vs lease, see construction equipment loans vs lease.

Related guides

For excavators, see excavator financing. For dump trucks, see dump truck financing. For general equipment, see construction equipment financing. For operating needs, see contractor working capital.

Frequently asked questions

How do contractors finance skid steers?

Contractors typically use construction equipment financing to purchase skid steers and compact track loaders. Payments are structured to match the revenue the equipment generates. The equipment serves as collateral.

Can contractors finance used skid steers?

Yes. Both new and used skid steers may qualify. Terms may vary based on age, condition, and value. See used construction equipment financing for more.

When does skid steer financing make sense?

It makes sense when you need a skid steer to take on jobs, replace failing equipment, or expand—and paying cash would strain reserves. Financing preserves working capital.

How does skid steer financing differ from working capital?

Skid steer financing is for the machine. Working capital is for payroll, materials, and operating expenses. Use equipment financing for equipment; use working capital for operations.