Landscapers, excavation contractors, snow removal companies, builders and demolition crews all rely on skid steers and compact track loaders. They're often the first machine a contractor buys and the one they replace most often. Because they're so common, lenders know them well. But the details, like hours, attachments and timing, still make a real difference to your terms.
Skid steer or compact track loader?
A wheeled skid steer is generally cheaper to buy and maintain, and it works well on pavement, concrete and firm ground. A compact track loader (CTL) costs more, but it handles mud, soft ground and slopes better and puts less pressure on finished surfaces. Both finance the same way. The difference is mostly in price and in what the lender checks on a used machine: tire condition on a skid steer, and undercarriage and track wear on a CTL.
What you can finance
A skid steer is only as useful as what's on the front of it, so most contractors finance a package rather than just the machine:
- The machine: new or used, from Bobcat, CAT, Deere, Kubota, Takeuchi, Case, JCB, New Holland and others.
- Attachments: buckets, pallet forks, grapples, augers, trenchers, breakers, forestry mulchers, snow pushers and blades.
- The trailer to haul it: a tilt deck or tag trailer, and even the truck that pulls it.
Putting everything in one deal usually means one payment, one approval and less paperwork than financing each piece separately.
New vs. used
Skid steers and CTLs build up hours fast, so hours matter more than age when you buy used. Lenders generally offer shorter terms on high-hour machines. When looking at a used unit, check:
- Hours on the meter and any service records
- Hydraulic leaks and how the machine responds under load
- Pins, bushings and play in the loader arms
- Tires on a skid steer, or tracks, rollers and sprockets on a CTL
- Cab condition, controls and any warning lights
Well-known brands hold their value, which helps both your terms today and your trade-in later.
Dealer promotional financing
Manufacturers sometimes offer low-rate promotions on new compact equipment through their dealers. These can be a good deal, but compare the whole picture. Promotions may require you to give up a cash rebate, apply only to certain models or terms, or require strong credit. Sometimes taking the rebate and financing separately costs less overall. Ask for both numbers before you sign.
Seasonal businesses
Many landscapers and snow contractors earn most of their revenue in certain months. Some financing programs offer payment structures that account for slower periods. Tell your finance contact about your season up front so the deal can be built around it.
Rent, buy out or buy?
If you've been renting a skid steer most of the month, every month, buying is usually cheaper over time. Compare your monthly rental bill to a finance payment. Some rental companies also let you buy out a machine you've been renting, and that buyout can be financed.
What lenders look at
For a single compact machine, the review is often straightforward: a short application, recent business bank statements and a credit check. Larger packages with several machines, attachments and a truck and trailer may also need business tax returns. Lenders look at time in business, cash flow, credit and the equipment itself.
Checklist before you apply
- Business name, EIN and years in business
- Three to six months of business bank statements
- The dealer quote or seller details, with year, make, model, serial number and hours
- A list of the attachments, trailer or truck you want included
- Your insurance agent's contact
Shopping for a skid steer or track loader? Send us the details and we'll tell you what to expect, or try the payment estimator. See everything we finance for contractors on our construction equipment page.