A skid steer sits in an awkward spot for financing. It is too expensive to buy outright from cash flow for most small contractors, but too cheap to interest the lenders who specialise in heavy plant. Machines commonly change hands between $38,000 and $62,000, and a large share of purchases are private-party rather than through a dealer — which changes how lenders price the deal.
This page covers what skid steer financing costs, how approval works, and the three things that move a quote most: machine hours, whether you are buying from a dealer, and your credit tier.
What a skid steer costs to finance
Rather than a single rate, most lenders price compact equipment in credit bands. These are the payment shapes you are likely to see on a five-year term:
| Scenario | Credit profile | Structure | Indicative monthly payment |
|---|---|---|---|
| $45,000 used, bought from a dealer | 650–690 | 10% down, 60 months | $825 – $930 |
| $62,000 new, bought from a dealer | 700+ | 0–5% down, 72 months | $890 – $1,020 |
| $38,000 older machine, private seller | 600–640 | 20% down, 48 months | $790 – $910 |
Note what those three rows show. The cheapest machine carries almost the same monthly payment as the most expensive one, because a weaker credit profile, an older machine and a private seller each push the structure the wrong way. Price is not what determines your payment — the structure is.
Rates and terms by credit tier
| Credit score | Typical APR | Typical term | Down payment |
|---|---|---|---|
| 700+ | Single digits to low teens | 60–84 months on newer machines | 0–10% |
| 650–699 | Low to mid teens | 48–60 months | 10–20% |
| 600–649 | High teens or risk-adjusted | 36–48 months | 20% or more |
The term length is not purely a preference. Lenders shorten the term as the machine ages, because they are matching the loan against the asset’s remaining useful life. A high-hour machine on a 72-month term leaves the lender exposed in the final years, so they will not write it.
Hours matter more than age
This is the main way skid steer underwriting differs from vehicle financing. A semi truck is assessed on mileage; a skid steer is assessed on engine hours, and the two do not correlate neatly with calendar age. A five-year-old machine with 900 hours is a better risk than a three-year-old machine with 4,000.
Practically: get the hour meter reading before you request a quote. It changes the term you will be offered, and sometimes whether you are offered anything at all.
Buying from a dealer versus a private seller
A large share of skid steers are bought privately, and lenders treat those deals differently. A dealer purchase comes with a documented sale, a serial number, often a warranty, and a business on the other side of the transaction. A private sale has none of that, so lenders typically ask for a larger deposit and may want an inspection or appraisal.
It is still very financeable. Just budget for the higher deposit rather than being surprised by it at quote stage.
Financing attachments
Buckets, augers, grapples, breakers and mulching heads can add several thousand dollars to a purchase, and they are frequently left out of the original loan. Two options are worth asking about: bundling the attachments into the machine finance at the point of sale, which is almost always cheapest, or covering them separately through equipment financing if you are adding them later.
Which brands lenders are comfortable with
Bobcat, John Deere, Caterpillar, New Holland, Case and Kubota all hold their value well and are straightforward to finance and resell. Lenders are more cautious with less common brands, imported machines without a US dealer network, and anything where parts availability is uncertain — because resale is how they recover a default.
If you are buying a Bobcat specifically, the manufacturer runs its own finance programme. It is worth quoting an independent lender against it: dealer finance is convenient, but the promotional rate usually applies to new machines only, and the used market is where most contractors actually buy.
Seasonal cash flow and payment structures
Landscaping, excavation and snow work are seasonal, and a flat monthly payment can be punishing in the off months. Some lenders will write step payments, deferred first payments, or seasonal schedules that concentrate repayment in your working months. These are not always advertised — you generally have to ask.
If seasonality is the underlying problem rather than the machine purchase itself, a business line of credit alongside the equipment loan often works better than stretching the loan term.
Frequently asked questions
Can I finance a skid steer with bad credit?
Yes, though the structure changes. Below roughly 640 expect a 20% deposit, a shorter term and a higher rate. The machine secures the loan, which is why approval is still realistic — see business loans for bad credit for what else is available at that credit level.
How many hours is too many on a used skid steer?
There is no universal cut-off, but financing gets noticeably harder past roughly 3,000 to 4,000 hours, and terms shorten sharply. Lenders are matching the loan to the machine’s remaining working life.
Can I finance a skid steer bought from a private seller?
Yes. Expect a larger down payment than a dealer purchase, and be prepared for the lender to request an inspection or appraisal before funding.
Can I finance attachments as well as the machine?
Usually yes, if they are on the same invoice at the point of sale. Adding them later normally means a separate agreement.
Do I need two years in business?
Not always. Traditional lenders prefer it, but equipment finance is asset-backed, so newer businesses are regularly approved with a larger deposit or relevant trade experience.
Financing your machine with SMB Compass
SMB Compass arranges heavy equipment financing for contractors across construction, landscaping and site work — new or used, dealer or private sale. For second-hand purchases specifically, our guide to used equipment financing and leasing covers how underwriting differs.