Construction Equipment Finance

Q: Can I finance used construction equipment?

Yes. Most lenders finance used construction equipment up to 10 years old. An independent valuation is typically required for machines over 5 years old. Rates for used equipment are typically 0.5–1% higher than new.

Q: What deposit do I need?

For hire purchase, most lenders ask for 10–20% deposit. Finance leases and operating leases often require no deposit at all. A larger deposit reduces your monthly payments and may unlock better rates.

Q: How quickly can I get construction equipment finance?

Most applications are approved within 24–48 hours. For straightforward deals under £100k, same-day approval is common. Larger or more complex deals may take 5–7 working days.

Q: Do I need to have been trading for a minimum period?

Most lenders require 2+ years of trading history. Start-up construction businesses can still access finance but may need a personal guarantee, additional security, or a higher deposit.

Spread the cost of construction equipment from £5,000 to £500,000+ with flexible finance options. HP, lease, or refinance — compare rates from 40+ lenders.

Typical Cost

£5k – £500k

Approval Speed

24–48 hours

Same-day for < £100k

Rates From

From 4.5% APR

Finance options

Hire Purchase (HP)

Rate: From 4.9% APR
Term: 12–84 months
Deposit: 10–20%
Ownership: Yours at the end
Best for: Construction firms wanting to own equipment outright

Finance Lease

Rate: From 4.5% APR
Term: 12–84 months
Deposit: None required
Ownership: Return or buy (balloon payment)
Best for: Tax-efficient — claim 100% of payments against profit

Operating Lease

Rate: From 5.2% APR
Term: 24–60 months
Deposit: None required
Ownership: Return at end
Best for: Keep your plant fleet modern. Off balance sheet.

Representative example

Borrow £85,000 over 48 months at 5.9% APR (fixed). Monthly repayment: ~£1,769. Total amount payable: ~£84,912. Rates depend on your circumstances.

Popular models

Model	Price Range	Type
JCB 3CX Backhoe Loader	£65,000 – £95,000	Backhoe Loader
CAT 320 Excavator	£120,000 – £200,000	Tracked Excavator
Volvo L60H Wheel Loader	£100,000 – £160,000	Wheel Loader
Bomag BW 120 Roller	£25,000 – £45,000	Compaction Roller

Tax benefits

Construction equipment qualifies for Annual Investment Allowance (AIA), letting you deduct the full purchase cost from taxable profits in year one — up to £1,000,000. HP agreements allow capital allowances. Lease payments are typically fully deductible from profits.

Market context

The UK construction equipment market is worth £5.8bn annually. Over 300,000 items of construction plant are in use across the UK. The sector is expected to grow 4.2% year-on-year through 2027, driven by major infrastructure projects.

Bad credit?

Several of our 200+ lenders specialise in businesses with imperfect credit histories. You may need a larger deposit or personal guarantee, but options exist. Our eligibility check uses a soft search only — no impact on your credit score.

Frequently asked questions

Can I finance used construction equipment?