How to Get Used Skid Steer Financing: A Step-by-Step Guide for Business Owners

Most traditional lenders turn down 70% of equipment financing applications.

The good news? Specialized equipment financiers approve that same percentage.

A used skid steer typically costs around $25,000 – a major investment that can strain any business’s budget.

Your credit profile determines monthly payments between $600 to $1,000, making this vital equipment more available through used skid steer financing.

The financing options have become more flexible than ever. You can choose seasonal payment plans and claim tax benefits up to $1,080,000 under Section 179.

The approval process takes just 2-3 days, while traditional banks make you wait for weeks.

We’ll guide you through the entire process of getting used skid steer financing – from application preparation to final loan terms.

Your business needs this equipment to grow, and we’re here to help you get it!

Understanding Used Skid Steer Value

The value of a used skid steer depends on several market factors.

We used tracked skid steers to get 15-20% more money than wheeled versions. This makes them better assets to finance.

Age and usage hours affect the resale value substantially. A skid steer that logs 2,000 hours over 4 years is worth more than one with 3,000 hours in 2 years.

Machines with less than 3,500 operating hours give the best value since most skid steers last about 5,000 hours.

Your location plays a big role in pricing. The same model sells at different prices across cities.

Market inventory levels also change values. Recent data shows asking prices dropped 7.1% while auction values fell 11.9% compared to last year.

Here are the critical areas to check while buying used equipment:

1. Engine performance – Look for smooth operation without stalling or unusual sounds
2. Hydraulic system – Make sure the boom stays in position without sinking
3. Undercarriage condition – Look at tracks or tires for wear
4. Maintenance records – Check service history and past repairs
5. Emissions system – Test proper function, as repairs can cost over $5,000

The bucket needs special attention. Check its leading edge, side panels, and bottom for wear patterns. Test all hydraulic functions and look for leaks around hoses and fittings carefully.

Nearly half the market consists of late-model inventory (0-5 years old). This gives buyers more options to finance quality machines that have good maintenance records.

Preparing Your Financing Application

Getting financing for a used skid steer starts with well-prepared application materials. Lenders usually ask for a simple one-page application with supporting documents.

Required business documents

You’ll need these key documents to complete your financing application:

• Driver’s license and voided business check
• Equipment quote from the seller
• Bank statements showing your last 3 months of cash flow
• Business tax returns from the last 1-3 years
• Current income statement and balance sheet

Credit score requirements

Most skid steer financing programs need a minimum credit score of 610. All the same, each lender has different requirements:

• Traditional banks look for 700+ credit scores
• Alternative lenders start accepting scores at 620-650
• Some specialized lenders work with scores under 600

Creating a strong business case

A solid business case makes your financing application stronger. Start with a detailed business plan that shows how the skid steer will boost your operations. More importantly, show you can handle payments through:

• Expected revenue increases from the equipment
• Seasonal payment plans that match your business cycles
• Detailed maintenance and operating cost estimates

Larger financing amounts need complete financial projections that show how you’ll cover payments in both busy and slow times.

So lenders get into your business’s yearly revenue, cash flow patterns, and industry type to figure out risk levels.

Comparing Skid Steer Loan Options

Traditional banks and alternative lenders take different approaches to used skid steer financing.

The original data shows banks approve only 30% of equipment loan applications because of their strict qualification requirements. Specialized equipment lenders, on the other hand, approve up to 70% of applications.

Bank loans vs equipment financing

Traditional bank loans come with lower interest rates but need lots of paperwork and take longer to process.

Equipment financing companies approve loans faster – usually within 24 hours. These companies also give business owners more flexible terms.

Seasonal payment options that line up with your business cycles make equipment financing particularly attractive.

Specialized lenders look at your industry experience among other factors like business tenure. This approach creates more opportunities for newer businesses.

Understanding interest rates and terms

The market rates for used skid steer financing begin at 5.9% for 60-month terms. Your monthly payments will vary based on your credit profile and business history:

• Credit score 685+: $600 monthly payments
• Credit score 650+: $640 monthly payments
• Credit score 625-650: $680 monthly payments

Loan terms range from 24 to 72 months. Short-term loans lasting 3 years or less have higher monthly payments but cost less in total interest. Loans lasting 5+ years reduce your monthly payments but increase your overall interest costs.

Equipment financing agreements let you make quarterly, annual, or semi-annual payments.

These payment structures match your revenue patterns better than traditional fixed monthly payments, which helps you manage your cash flow more effectively.

Steps to Secure Equipment Financing

Most lenders offer same-day decisions when you apply for used skid steer financing through a simple process.

Submit loan application

A simple one-page form and supporting documents start the application process.

Lenders usually make their decisions within 24-48 hours. These items will accelerate your processing:

6. Equipment quote and specifications
7. Driver’s license copy
8. Voided business check
9. Bank statements
10. Completed application form

Equipment inspection verification

A full equipment inspection plays a crucial role before finalizing your financing. Professional verification gets into:

• Bucket condition and wear patterns
• Hydraulic system functionality
• Engine performance
• Maintenance records
• Tire or track condition

The inspection report helps set the equipment’s value and shapes your final loan terms. A complete inspection protects you and your lender by documenting the machine’s condition.

Finalizing loan terms

Lenders provide several payment options after approving your application. Programs often have features like:

• No payments for first 90 days
• $99 payments for first six months
• Terms extending up to 72 months

You should review all terms and conditions carefully in the final documentation phase. Look at interest rates, payment schedules, and early payment penalties before signing.

Some lenders provide seasonal payment plans that match your business cycles, especially when you have construction and landscaping operations.

Most lenders send funds within 1-2 business days after receiving your signed documents.

Your skid steer serves as the only collateral in equipment financing agreements, which keeps other business assets free from blanket liens.

Conclusion

Getting used skid steer financing is substantially easier through specialized equipment lenders than traditional banks.

These lenders know equipment values, provide flexible payment options and approve applications in days instead of weeks.

Smart preparation can make all the difference in getting financing.

Your approval chances increase dramatically with a full equipment inspection, complete documentation package and clear business case. Payment plans that match your cash flow patterns help preserve working capital.

Credit requirements differ among lenders, with some programs starting as low as 610. Specialized equipment financiers look at your business’s potential rather than just credit scores, making equipment available even without perfect credit.

Business owners can approach lenders confidently and secure the right financing package when they have proper documentation and equipment verification.

A careful review of loan terms, payment structures and interest rates will give a financing solution that supports growth without straining cash flow.