How to Finance Business Equipment in Construction, Automotive, and Trucking

Mantis Funding November 13, 2026

Keeping fleets, heavy machinery, and shop equipment current is a constant squeeze when jobs, customer traffic, and contracts surge and slow throughout the year. In construction, automotive repair, and trucking, the next excavator, alignment bay, or tractor can unlock revenue, yet large upfront checks strain cash needed for payroll, fuel, materials, insurance, and marketing.

Equipment financing spreads the cost of vehicles, machines, and tools over time so you can keep projects moving and preserve working capital. Alongside bank loans and leases, revenue-based financing from Mantis Funding offers speed and flexibility without the stress of traditional lending. The same playbook can help other capital-intensive fields like restaurants that rely on ovens, refrigeration, dish machines, and POS systems. This guide walks through the options, tax angles, and a simple process to choose the right approach for your business.

Key takeaways

Compare bank equipment loans and leases, SBA 7(a)/504 loans, term loans and lines of credit, dealer programs, and fast revenue-based financing to match ownership, speed, and cash-flow impact with your goals.
Use revenue-based financing to access upfront capital for equipment by sharing a small, defined percentage of future revenue that adjusts with sales, ideal for contractors, shops, and carriers needing quick funding, cash-flow flexibility, or coverage for gaps like down payments and installation with providers such as Mantis Funding.
Apply Section 179 and bonus depreciation on qualifying financed or leased equipment placed in service to accelerate year-one deductions and lower net cost, and confirm the exact Section 179 deduction limit for 2026 with current IRS guidance or a tax professional.

What is equipment financing and how does it work?

Equipment financing is purpose-built capital used to acquire vehicles, heavy machinery, and shop tools without draining operating cash. A finance company typically funds most of the purchase price, and your business pays over a schedule that mirrors the asset’s useful life so the machine can help generate the cash to cover it.

Because the equipment often serves as collateral, qualifying can be more straightforward than unsecured working capital. Well-known brands and models in the construction industry and trucking industry can further support eligibility and pricing.

Both equipment loans and leases fall under equipment financing, but they treat ownership differently and offer distinct end-of-term choices. Revenue-based financing is a separate structure in which funding is delivered upfront in exchange for a share of future revenue. Choosing among them depends on asset life, how quickly technology may become outdated, and how predictable your revenue is. Many owners ask what are the best equipment financing options, and the right answer fits your cash flow and timelines, not just the lowest quoted rate.

Typical equipment needs and costs by industry

Construction firms often price excavators, skid steers, backhoes, and attachments. New units can reach six figures while quality used equipment offers savings with trade-offs in warranty and expected maintenance.

Automotive repair shops invest in lifts, diagnostic scanners, alignment machines, compressors, and specialized tools. Many shops need multiple identical units to expand throughput across bays and reduce wait times.

Trucking companies and owner-operators evaluate over-the-road tractors, box trucks, trailers, and refrigeration units. Restaurants face similarly high-ticket ranges for ovens, ranges, walk-ins, dish machines, and POS systems. Delivery, installation, upfitting, and initial maintenance add to the total and may be included in financing or revenue-based funding. All figures below are estimates that vary by brand, age, condition, and market dynamics.

Industry	Equipment examples	Estimated cost range (new)	Estimated cost range (used)	Notes
Construction	Excavator	$120,000–$350,000	$70,000–$200,000	Tier, tonnage, and attachments drive price; transport and setup often extra
Construction	Skid steer	$45,000–$90,000	$25,000–$60,000	Tracks, horsepower, and quick-attach options affect cost
Construction	Backhoe	$80,000–$150,000	$40,000–$100,000	Age, hours, and brand reputation influence pricing
Construction	Attachments (buckets, breakers, augers)	$5,000–$25,000	$3,000–$15,000	Consider hydraulic compatibility and wear
Automotive repair	Two-post or four-post lift	$4,000–$8,000	$2,000–$5,000	Capacity rating and safety certifications matter
Automotive repair	Alignment machine	$25,000–$55,000	$12,000–$30,000	ADAS calibration options add cost
Automotive repair	Diagnostic scanner	$3,000–$15,000	$1,000–$7,000	Annual software subscriptions may apply
Automotive repair	Compressor and air system	$2,000–$8,000	$1,000–$4,000	Plan for dryers, piping, and installation
Trucking	Class 8 tractor	$160,000–$220,000	$50,000–$140,000	Mileage, emissions system history, and spec packages affect value
Trucking	Box truck (Class 4–7)	$60,000–$120,000	$20,000–$70,000	Uplifts like liftgates and boxes add cost
Trucking	Dry van trailer	$35,000–$65,000	$15,000–$40,000	Market cycles move pricing materially
Trucking	Refrigeration unit (reefer)	$15,000–$35,000	$6,000–$18,000	Engine hours and warranty status are key factors],[

Business equipment financing options at a glance

Equipment loans provide fixed terms and predictable schedules, and you own the asset at the end. Banks often prefer this structure for long-lived equipment and may ask for a down payment, sometimes 10 to 20 percent, depending on credit and collateral.

Leases shift the focus to usage and flexibility. Fair market value formats can reduce the periodic amount and keep options open at term end, while one-dollar-buyout leases function more like ownership with a nominal purchase at maturity. Fast-changing technology or short project windows can favor a lease.

SBA 7(a) and 504 loans support larger and longer-lived equipment with attractive pricing and terms. They can be a strong fit for established companies willing to navigate heavier documentation and longer timelines to close.

Business term loans and lines of credit can cover multipurpose needs including training, software, or buildouts tied to new equipment. Dealer and manufacturer programs sometimes offer promotional rates on specific models but can be less flexible on soft costs. Revenue-based financing sits alongside these options as an agile way to access capital based on revenue trends rather than hard collateral or traditional underwriting.

Using revenue-based financing to fund equipment purchases

Revenue-based financing delivers a lump sum you can direct toward equipment. In return, your business delivers an agreed-upon total amount through a small, defined share of future revenue until the obligation is met. There is no fixed amortization schedule, and the percentage applies only as sales occur.

Because the share flexes with revenue, contractors navigating seasonal jobs, shops handling cyclical demand, and carriers facing freight slowdowns or fuel spikes can keep cash flow aligned with reality. Strong months accelerate progress, and slower periods reduce the percentage impact.

Approval decisions center on business revenue trends, bank statements, and card deposits, not only a traditional credit score or large personal collateral pledges. That focus can speed decisions and reduce friction for time-sensitive purchases or upgrades.

Revenue-based financing can also complement an equipment loan or lease by covering down payments, installation, calibration, software, or auxiliary tools that banks decline to fund. Mantis Funding specializes in this flexible structure for small and larger operators across construction, automotive, trucking, and similar industries, with streamlined applications and rapid access to capital.

Comparing options: which equipment financing solution fits your business?

Your best fit depends on ownership goals, asset life, upgrade cycles, and how variable your revenue is. Long-lived machines that hold value often align with bank equipment loans or one-dollar-buyout leases, while fast-evolving technology can favor fair market value leases. Flexible funding like revenue-based financing can bridge gaps or smooth seasonality.

Credit strength, time in business, and collateral availability influence where you land. Strong credit and longer operating history often unlock SBA or bank options, while newer firms or companies that want speed may work with independent equipment finance providers or pursue revenue-based capital.

For example, a contractor buying a new excavator might use a bank equipment loan for the machine and revenue-based financing for delivery, attachments, and initial maintenance. A shop adding diagnostic bays could lease alignment equipment and scanners, then use flexible funding to cover training and software. A regional carrier expanding with two late-model tractors might combine a bank loan with revenue-based capital for taxes, tags, and insurance.

Evaluate the total cost of capital, not just the periodic amount. Include interest or factor costs, fees, prepayment terms, and tax treatment. Manage risk by diversifying funding sources, leaving capacity on your bank line, and keeping liquidity for emergencies. Banks like City National Bank and independent lessors such as First American Equipment Finance operate nationally in this space, alongside alternative providers focused on speed and flexibility.

Step-by-step guide to securing equipment financing with Mantis Funding

Start by scoping operational needs and expected demand. Identify the revenue lift or cost savings that new equipment will drive, then set a realistic budget and timeline.

Check existing obligations, credit reports, and bank statements. Address discrepancies before you apply to reduce avoidable delays with banks, lessors, or alternative providers.

Prepare common documents for equipment loans, leases, and SBA products, including tax returns, financial statements, equipment quotes, and insurance details.

If you plan to use revenue-based financing, organize recent bank statements and sales reports that show consistent revenue inflows. Compare proposals side by side for speed, flexibility, total cost, and how each structure preserves future borrowing capacity. Mantis Funding can review revenue data and provide quick decisions for construction, automotive, trucking, and restaurant operators.

Get started with fast, flexible equipment financing

Reach out to Mantis Funding now and share your recent revenue data to receive a tailored revenue-based financing proposal aligned to your equipment plan and industry needs, then move forward on your next machine or vehicle with speed and confidence.

Frequently Asked Questions

Which equipment financing options should businesses in construction, automotive repair, and trucking consider?

Evaluate conventional bank equipment loans, fair market value and one-dollar-buyout leases, SBA 7(a) and 504 loans for larger or longer-lived assets, business term loans and lines of credit for related soft costs, dealer or manufacturer programs for promotional offers, and revenue-based financing for fast, flexible access tied to revenue.

How does revenue-based financing work for funding equipment and when is it a fit?

Your business receives upfront capital and delivers an agreed-upon total through a small, defined share of future revenue until the obligation is met. It can fit when you need speed, have seasonal or variable sales, or want to cover gaps such as down payments, installation, software, or auxiliary tools that traditional providers may not fund.

When should I use Section 179 and bonus depreciation to reduce equipment costs, and what should I know for 2026?

Use Section 179 for qualifying equipment placed in service during the tax year to accelerate deductions, and pair it with bonus depreciation when appropriate. Limits change over time. Verify the exact Section 179 deduction limit for 2026 and coordinate timing and structure with a CPA to align with your taxable income and planning goals.