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Construction Equipment Finance

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.

Can you finance a construction equipment?

Yes, construction equipments are financed as a standard asset purchase, usually on hire purchase or a lease, with the machine itself acting as the security. UK prices typically run £5,000 to £500,000, and most deals are written over 12–84 months with a deposit of around 10–20%. Decisions typically take 24–48 hours. Used machines are financeable too, usually with a shorter term.

200+ UK lenders
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Typical Cost

£5k – £500k

Approval Speed

24–48 hours

Same-day for < £100k

Rates From

4.5% APR

What would a construction equipment cost per month?

£85,000
10%
60 months
9%
£0

Your estimate

Indicative only. Not a quote and not an offer of finance.

Pre-filled with a typical construction equipment price. Indicative only, not a quote.

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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

On a purchase price of £85,000: a 10% deposit of £8,500, then 48 monthly payments of £1,793 at 5.9% APR representative (fixed). Total amount payable £94,564, including the deposit. The rate you are offered depends on your business and the asset.

What buyers actually specify

Guide prices for sizing a finance agreement, not quotes. Manufacturers in this market mostly price on application, so where a current UK list price could not be confirmed the row describes a specification class rather than naming a model. Your supplier quote is what the agreement is written against.

Machine or specification Guide price 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

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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

Construction equipment, from excavators and dumpers to compactors and site plant, is bought by groundworks and civil engineering contractors, house builders, and plant hire companies stocking a fleet to hire out. Most buyers finance rather than pay outright because equipment needs to be earning on site from day one, and a hire purchase agreement can be structured around contract income rather than requiring capital up front. Replacement is usually driven by hours run and rising repair costs on an ageing machine rather than a fixed age, with hire fleets cycling stock faster than owner-operators. A large, liquid used market, supported by export auction demand, keeps residual values solid.

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. Checking your options here does not affect your credit score, because we do not run a credit search to match you. A lender will run their own checks only if you decide to apply.

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Frequently asked questions

Can I finance used construction equipment?
Yes, most lenders finance used construction equipment up to around 10 years old, and an independent valuation is typically required for machines over 5 years old. Rates for used equipment are usually a little higher than new to reflect the shorter remaining working life. Hours run and hydraulic condition matter more to a lender's decision than age alone, and a machine from a plant hire fleet with full service records generally secures better terms than an unknown-history example bought at auction.
What deposit do I need for construction equipment finance?
For hire purchase, most lenders ask for a 10-20% deposit, while finance leases and operating leases can often be arranged with no deposit at all. A larger deposit reduces the monthly payment and may unlock a better rate, which matters more when financing several machines together as part of a fleet order than for a single item. Many contractors weigh the deposit size against needing the machine to start earning on site immediately rather than tying up capital before work has even begun.
How quickly can I get construction equipment finance?
Most applications are approved within 24-48 hours, and same-day approval is common for straightforward deals under £100,000. Larger or more complex deals, particularly multi-machine fleet orders or specialist attachments bought alongside the base machine, may take five to seven working days as the lender reviews the fuller specification. Having a clear itemised quote for each machine and attachment ready before applying is the most reliable way to keep a larger application moving quickly.
Do I need to have been trading for a minimum period?
Most lenders require at least two years of trading history for standard terms. Start-up construction businesses can still access finance but may need a personal guarantee, additional security, or a higher deposit, since the lender has less trading history to assess the business against. Because construction equipment has a large, liquid used market with strong export demand, lenders are generally comfortable financing even a newer contractor provided the machine itself offers solid resale value as security behind the agreement.
What happens at the end of a construction equipment finance agreement?
Hire purchase transfers full ownership of the equipment once the agreement is paid off, which suits a contractor wanting to own machinery outright and keep using it across multiple contracts. A finance lease usually offers a balloon payment to take ownership, continued rental, or handover to the funder, while an operating lease is return-only, which suits a business wanting to keep its plant fleet modern rather than run the same machine to the end of its working life. Hours run and rising repair costs, more than a fixed age, tend to drive replacement.
Can delivery and site set-up be included in the finance?
Yes, provided they appear on the supplier's invoice alongside the machine itself, most lenders fund transport to site and any initial set-up or commissioning as part of the same agreement rather than requiring it to be paid separately. This is worth arranging upfront for a larger machine, since transport costs for tracked or heavy plant can be significant, and keeping everything on one itemised invoice makes it straightforward to include the full delivered cost in the finance amount rather than paying transport separately in cash.

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