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Piling Rig Finance

Rotary piling rigs cost from around £450,000 to £1,800,000 new, so almost every UK piling contractor finances rather than buys with cash.

Can you finance a piling rig?

Yes, piling rigs 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 £350,000 to £1,800,000, 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.

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Typical Cost

£350k – £1800k

Approval Speed

24–48 hours

Same-day for straightforward deals

Rates From

5.4% - 9.9% per annum

What would a piling rig cost per month?

£750,000
10%
60 months
9%
£0

Your estimate

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

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

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Finance options

Hire Purchase (HP)

Rate
5.9% - 9.9% per annum
Term
12-84 months
Deposit
10-20%
Ownership
Yours at the end
Best for
Businesses that want to keep a rig continuously deployed across a piling contract book

Finance Lease

Rate
5.4% - 8.9% per annum
Term
12-84 months
Deposit
None required
Ownership
Return or buy (balloon payment)
Best for
Businesses that want access to a rig without the largest possible capital outlay; payments are usually deductible as an operating expense

Operating Lease

Rate
6.4% - 9.9% per annum
Term
24-60 months
Deposit
None required
Ownership
Return at end
Best for
Businesses that want to keep the piling rig off balance sheet and upgrade regularly

Representative example

On a purchase price of £750,000: a 10% deposit of £75,000, then 48 monthly payments of £15,821 at 5.9% APR representative (fixed). Total amount payable £834,408, 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
Bauer BG 12 £550,000 - £750,000 Rotary Piling Rig
Bauer RG 16 £700,000 - £950,000 Rotary Piling Rig
Bauer RG 25 £900,000 - £1,300,000 Rotary Piling Rig
Junttan PM Series £450,000 - £650,000 Piling and Pile-Driving Rig

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Tax benefits

A piling rig is treated as plant and machinery for tax purposes, so it qualifies for the Annual Investment Allowance (AIA), letting a business deduct the full cost from taxable profits in the year of purchase, up to the current £1,000,000 annual limit. Companies buying new, unused equipment may also qualify for full expensing, a 100% first-year deduction against Corporation Tax. These allowances apply where you own the asset, so they are available under a Hire Purchase agreement. Under a Finance Lease or Operating Lease you do not own the piling rig outright, so allowances are not claimed directly; instead the payments are generally deducted as a business expense against profits. Always confirm treatment with your accountant before committing to a structure.

Market context

Piling rigs are bought exclusively by specialist piling and foundation contractors, because the cost and the skill needed to operate and maintain one rule out ownership by general contractors. Given the value involved, financing is close to universal in this sector; few businesses have the cash reserves to buy a rig outright without affecting their ability to bid for work. Replacement is driven by the mast, kelly bar and undercarriage reaching the point where refurbishment costs approach the price of a newer rig, and the used market is genuinely global, with UK contractors buying and selling rigs internationally depending on project demand.

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 a used piling rig?
Yes, and it's common given how expensive new rigs are. Lenders will want a detailed engineering condition report covering the mast, kelly bar, crowd system and undercarriage, since these are the components most likely to need major spend. Because rigs trade internationally, provenance and import history also matter to the valuation. Whatever the age of the piling rig, a clear paper trail showing how it has been maintained and used will always work in your favour when negotiating price and terms.
What term suits a piling rig's working life?
6 to 8 years is typical, matched to how long the mast and drive system stay reliable under heavy rotary loads before a major rebuild becomes cost-effective. Contractors with a strong forward order book sometimes extend the term to keep monthly costs proportionate to contract cash flow. Getting the term broadly right for a piling rig matters more than chasing the lowest possible monthly payment, since a mismatch either strains cashflow early on or leaves you paying for a machine that has already become expensive to keep running.
Is a piling rig eligible for Annual Investment Allowance?
Yes, a piling rig is plant and machinery, so it qualifies for AIA up to the current annual limit when bought under Hire Purchase, which is significant given the size of a typical rig purchase. Leased rigs don't qualify for AIA, but the rental payments are usually deductible as a business expense instead. It is worth confirming the treatment with your accountant at the point of purchase, since claiming the allowance in the year you buy the piling rig rather than spreading relief over several years can make a real difference to that year's tax bill.
What happens at the end of the agreement?
HP transfers ownership once the agreement is paid off. A Finance Lease usually allows a balloon payment, continued rental, or return to the funder. Given the international resale market for rigs, some contractors prefer an Operating Lease so the funder manages disposal rather than the contractor arranging an export sale themselves. Which option suits best usually comes down to whether you expect to keep using this exact piling rig for years to come, or whether you are likely to want a newer or different-specification machine within a few years.
Do I need a deposit?
Hire Purchase deposits of 10-20% are standard, though on a rig costing several hundred thousand pounds this represents a substantial sum, so many contractors negotiate the exact figure against their trading history and forward contracts. Finance Lease and Operating Lease generally require no deposit. If cash is tight when the piling rig is needed, ask the lender whether the deposit can be reduced in exchange for a marginally higher rate; this is often negotiable, particularly for an established trading business.

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