Tree service loans are most often equipment loans or leases for bucket trucks, chippers, stump grinders and grapple trucks, with the equipment as collateral. Arborists and tree removal companies also borrow for working capital, especially to cover crews and fuel during storm cleanup before customers or insurers pay. Which one fits depends on the machine, its age and how long your company has been operating.
This page is part of our loans for landscaping companies guide. If you also mow and maintain properties, landscaping equipment financing covers mowers and compact loaders.
Equipment tree services finance
- Bucket trucks (aerial lift trucks). Often the largest single purchase for a tree company. Lenders finance the chassis and the aerial device together.
- Chippers. Towable drum and disc chippers. Because they’re trailer-mounted, some lenders treat them like other towable equipment; see trailer financing.
- Chip trucks and dump trucks. For hauling chips and wood. See dump truck financing.
- Grapple saw and knuckleboom trucks, cranes and log loaders. High-cost machines for removals and clearing, often bought used.
- Stump grinders, compact loaders and tracked lifts. For backyard access and cleanup.
Bucket truck financing: new vs. used
Buying used is a common route for bucket trucks, including units retired from utility and municipal fleets. Used units cost less but lenders look closely at the age of the chassis, mileage, engine hours and the condition of the boom and hydraulics. Expect a shorter term on an older truck.
Before you finance a used unit, ask the seller for the inspection and maintenance records for the aerial device as well as the truck, and have both inspected. A lender will want the VIN, the aerial device’s make, model and serial number, and a bill of sale or dealer invoice. If you buy from a private seller or an auction, you’ll also need a title and lien search. Our guide to used equipment financing and leasing explains how lenders treat older machines.
Where tree service financing comes from
| Source | How it works | Good fit when |
|---|---|---|
| Dealer or manufacturer program | The equipment brand’s finance partner funds the sale at the dealer | You’re buying new and a promotion applies |
| Independent equipment lender | Loans and leases on new and used equipment, sometimes from private sellers | You’re buying a used bucket truck or mixing brands |
| Bank or credit union | Equipment loan tied to your business banking | You have several years of strong financials |
| SBA 7(a) loan | Government-guaranteed loan through a bank or SBA lender | You’re buying several machines, or equipment plus working capital |
| Business line of credit | Revolving credit for short-term costs | You need to cover payroll and fuel during storm work, not buy equipment |
What it costs
Equipment lenders quote an interest rate (the yearly cost of the loan before fees) or an APR (annual percentage rate, which also counts most fees). Compare offers on APR and total repayment. Many lenders don’t publish rates for tree equipment specifically, so ask for them in writing. Two equipment lenders publish these terms (figures checked on September 21, 2026):
| Lender | Pricing and terms | Minimums | Other details |
|---|---|---|---|
| Kapitus | Interest rates starting at 7.5%; terms up to 72 months; up to 100% of the equipment cost for qualified buyers | $20,000 financed; FICO score 660; 2 years in business | Lists “Landscaping/Arbor” among equipment it finances; no penalty for paying off early |
| Ameris Bank Equipment Finance | Rates depend on credit, revenue, amount and term; most deals 24, 36, 48 or 60 months | 2+ years in business; $100,000+ annual revenue; FICO score of 640 or more | Application-only up to $500,000 for hard collateral; finances used equipment; personal guarantees required |
A titled truck with a clear resale market is the kind of collateral equipment lenders are most comfortable with, and Ameris, for example, allows larger application-only amounts for hard collateral than for soft collateral. Run any quote through our equipment loan calculator to see the monthly payment and total cost.
SBA loans for tree companies
An SBA 7(a) loan can fund equipment and working capital together. The SBA puts the maximum 7(a) loan at $5 million (SBA) and the maximum maturity for equipment at 10 years (SBA). It takes longer than an equipment lender, so it suits planned fleet growth more than an urgent replacement. For newer or smaller companies, SBA microloans go up to $50,000 and can be used for machinery and equipment (SBA).
Safety, insurance and underwriting
Tree work carries real safety risks, and lenders and insurers know it. The Bureau of Labor Statistics says tree trimmers and pruners “must be comfortable working high off the ground” and “must use fall protection gear and wear hardhats and goggles,” and that grounds maintenance workers “experience one of the highest rates of fatalities of all occupations” (BLS).
In practice, that means lenders will usually ask for proof of physical damage insurance on the financed equipment, with the lender named as loss payee, and may ask about your liability and workers’ compensation coverage. Keep your training records and equipment inspection logs current. They matter to your insurer, and a clean record makes the lender’s review simpler.
What lenders look for
- Time in business and revenue. The lenders above want two years and, for Ameris, $100,000 or more in annual revenue.
- Credit. Published minimums above are 640 and 660 FICO. If your score is lower, see equipment financing with bad credit.
- Type of work. Residential removals, commercial property accounts and utility line-clearance subcontracts each look different to a lender. Signed contracts help.
- The equipment. Year, mileage, hours, boom height and condition, with inspection reports for used units.
- Existing debt. Lenders add up current equipment payments. A clean payment history on earlier trucks helps.
Tax considerations
For tax years beginning in 2026, the Section 179 expensing limit is $2,560,000, reduced once qualifying purchases exceed $4,090,000 (IRS Rev. Proc. 2025-32). The IRS also describes a permanent 100% additional first-year depreciation deduction for qualified property acquired after January 19, 2025 (IRS). Trucks and leased equipment have their own rules, so check with your tax preparer before timing a purchase around a deduction.
Common pitfalls
- Buying more boom than you need. A taller unit costs more to buy, insure and maintain. Match working height to your usual jobs.
- Skipping the aerial device inspection on a used truck. A clean chassis doesn’t mean a sound boom.
- Financing storm payroll with equipment money. Use a line of credit for short-term storm costs, and keep equipment loans for equipment. See business line of credit.
- A term longer than the truck’s working life. An older bucket truck on a long loan can need major repairs while you’re still paying for it.
Frequently asked questions
Can I finance a used bucket truck?
Yes. Kapitus says you can finance both new and used equipment, and Ameris says it finances used business equipment. Expect questions about age, mileage and the aerial device’s condition, and possibly a shorter term.
How long can I finance tree service equipment?
Kapitus offers up to 72 months, and Ameris says most of its deals run 24 to 60 months. SBA 7(a) loans can run up to 10 years for equipment.
Can a new tree service get equipment financing?
It’s harder but possible. Ameris says businesses from 6 months to less than 2 years old may qualify for up to $50,000 through select programs. A larger down payment or a strong personal credit profile helps. See equipment financing for startups.
Do I need a down payment on a bucket truck?
Not always. Kapitus says it offers no down payments for qualified buyers. Newer companies and older trucks are more likely to need money down.
Next step
If you have a quote on a bucket truck or chipper and want to compare it, our loans for landscaping companies page explains how SMB Compass compares offers from its lending partners. For cranes and larger machines, see heavy equipment financing.
Sources
- Kapitus: Equipment financing
- Ameris Bank Equipment Finance: Equipment financing
- BLS: Grounds Maintenance Workers, Occupational Outlook Handbook
- SBA: 7(a) loans
- SBA: 7(a) terms, conditions and eligibility
- SBA: Microloans
- IRS: Rev. Proc. 2025-32
- IRS: Guidance on additional first year depreciation
About this page. Written by Ezra Cabrera, Content Team Lead at SMB Compass. Figures were checked against the primary sources listed above on September 21, 2026; lenders change their terms, so confirm current terms before you apply, and let us know if you spot a figure that has changed. SMB Compass is a business financing broker: we don’t lend our own money, and we are paid by the lenders we place loans with. This page is general information, not financial, legal or tax advice.