Excavator Finance

Q: Can I finance a used excavator?

Yes, most lenders finance used excavators up to around 10 years old, and an independent valuation is usually required for machines over 5 years old. Rates for used equipment are typically a little higher than new to reflect the shorter remaining working life. Hydraulic and undercarriage condition matter more to a lender's decision than age alone, and a machine from a plant hire fleet with documented service history generally secures better terms than an unknown-history example bought privately or at auction.

Q: What deposit do I need for excavator 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 on a larger tracked excavator than on a compact machine for a smaller landscaping business. Many contractors weigh the deposit size against needing the machine earning on site from day one rather than tying up capital before work has begun.

Q: How quickly can I get excavator finance?

Most applications are approved within 24-48 hours. Straightforward deals under £100,000 often get same-day approval, which covers most compact and mid-size excavator purchases. Larger or more complex deals, such as a large tracked excavator bought alongside attachments, may take five to seven working days as the lender reviews the fuller specification. Having a clear itemised quote for the machine and any attachments ready before applying keeps a straightforward application moving quickly.

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

Most lenders require at least two years of trading history. Start-up businesses can still access finance but may need a personal guarantee or a higher deposit, since the lender has less trading history to assess. Because excavators have a large, liquid used market with strong export demand, lenders are generally comfortable financing even a newer contractor or landscaper provided the machine itself offers solid resale value as security behind the agreement, particularly for common compact and mid-size models.

Q: What happens at the end of an excavator finance agreement?

Hire purchase transfers full ownership of the excavator once the agreement is paid off, which suits a business wanting to own its machinery outright and keep using it across successive 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 upgrade to the latest models regularly rather than run the same machine to the end of its working life. Hours run and rising repair costs, more than age, tend to drive replacement.

Q: Can I finance an excavator with attachments and a trailer included?

Yes, provided they appear on the supplier's invoice alongside the excavator itself, most lenders fund buckets, breakers, quick hitches and a transport trailer as part of the same agreement rather than requiring them to be paid separately. This is common for a first excavator purchase, where attachments and a means of moving the machine between sites can add a meaningful amount to the total cost. Keeping everything on one itemised invoice makes it straightforward to finance as a single amount.

Spread the cost of excavators from £15,000 to £350,000+ with flexible finance options. HP, lease, or refinance

Can you finance a excavator?

Yes, excavators 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 £15,000 to £350,000, 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.

Typical Cost

£15k – £350k

Approval Speed

24–48 hours

Same-day for < £100k

Rates From

4.4% APR

What would a excavator cost per month?

Excavator price (ex VAT) £95,000

Deposit 10%

Agreement term 60 months

Annual interest rate 9%

Balloon payment £0

Your estimate

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

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

Finance options

Hire Purchase (HP)

Rate: From 4.8% APR
Term: 12–84 months
Deposit: 10–20%
Ownership: Yours at the end
Best for: Businesses wanting to own the excavator outright

Finance Lease

Rate: From 4.4% 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 5.1% APR
Term: 24–60 months
Deposit: None required
Ownership: Return at end
Best for: Upgrade to the latest models regularly. Off balance sheet.

Representative example

On a purchase price of £95,000: a 10% deposit of £9,500, then 48 monthly payments of £2,004 at 5.9% APR representative (fixed). Total amount payable £105,692, including the deposit. The rate you are offered depends on your business and the asset.

Machine or specification	Guide price	Type
CAT 320 GC	£130,000 – £200,000	20-Tonne Tracked Excavator
Komatsu PC210	£120,000 – £180,000	21-Tonne Tracked Excavator
Volvo EC220E	£130,000 – £190,000	22-Tonne Tracked Excavator
JCB JS131	£70,000 – £100,000	13-Tonne Tracked Excavator

Tax benefits

Excavators qualify 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 you to claim capital allowances. Lease payments are typically fully deductible from profits.

Bad credit?

Some specialist lenders consider businesses with imperfect credit histories. You may need a larger deposit or personal guarantee, but options may be available. Fundably may use a soft credit check for matching, which does not affect your credit score. A hard check may happen if you choose to proceed with a lender.

Frequently asked questions

Can I finance a used excavator?

Yes, most lenders finance used excavators up to around 10 years old, and an independent valuation is usually required for machines over 5 years old. Rates for used equipment are typically a little higher than new to reflect the shorter remaining working life. Hydraulic and undercarriage condition matter more to a lender's decision than age alone, and a machine from a plant hire fleet with documented service history generally secures better terms than an unknown-history example bought privately or at auction.

What deposit do I need for excavator 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 on a larger tracked excavator than on a compact machine for a smaller landscaping business. Many contractors weigh the deposit size against needing the machine earning on site from day one rather than tying up capital before work has begun.

How quickly can I get excavator finance?

Most applications are approved within 24-48 hours. Straightforward deals under £100,000 often get same-day approval, which covers most compact and mid-size excavator purchases. Larger or more complex deals, such as a large tracked excavator bought alongside attachments, may take five to seven working days as the lender reviews the fuller specification. Having a clear itemised quote for the machine and any attachments ready before applying keeps a straightforward application moving quickly.

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

Most lenders require at least two years of trading history. Start-up businesses can still access finance but may need a personal guarantee or a higher deposit, since the lender has less trading history to assess. Because excavators have a large, liquid used market with strong export demand, lenders are generally comfortable financing even a newer contractor or landscaper provided the machine itself offers solid resale value as security behind the agreement, particularly for common compact and mid-size models.

What happens at the end of an excavator finance agreement?

Hire purchase transfers full ownership of the excavator once the agreement is paid off, which suits a business wanting to own its machinery outright and keep using it across successive 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 upgrade to the latest models regularly rather than run the same machine to the end of its working life. Hours run and rising repair costs, more than age, tend to drive replacement.

Can I finance an excavator with attachments and a trailer included?

Yes, provided they appear on the supplier's invoice alongside the excavator itself, most lenders fund buckets, breakers, quick hitches and a transport trailer as part of the same agreement rather than requiring them to be paid separately. This is common for a first excavator purchase, where attachments and a means of moving the machine between sites can add a meaningful amount to the total cost. Keeping everything on one itemised invoice makes it straightforward to finance as a single amount.

More construction & plant finance

See how lenders treat construction & plant assets

Forklift finance Formwork finance Geothermal Drill Rig finance High Reach Demolition finance Hoist finance Jackhammer finance Laser Screed finance Mast Climber finance Micro Piling Rig finance Mini Digger finance Modular Building finance Muck Away Lorry finance

Guides and resources

What Is Asset Finance? HP vs Leasing Operating vs Finance Lease Best Asset Finance Companies Close Brothers Review Lombard Review

Ready to finance your excavator?

Explore business funding options through Fundably.

Check Eligibility →

For UK limited companies with at least 3 months’ trading and monthly revenue.