The best financing options for buying a new skid steer are a manufacturer or dealer program, a bank or credit union equipment loan, an online equipment lender, or an SBA 7(a) loan, and the right choice depends on how fast you need the machine, how much you can put down and how your credit and cash flow look to an underwriter. Dealer promotions can win on rate, banks and credit unions often win on long-run cost, online lenders tend to win on speed, and SBA loans can stretch the term furthest. This guide puts the options side by side and runs one $70,000 machine through each of them.
Which financing options work best for buying a new skid steer
Each source of money trades speed, price and paperwork differently. Where a cell below says lender policy, the number varies by lender and borrower.
| Option | Speed | Down payment | Term | What gets reviewed | Best fit |
|---|---|---|---|---|---|
| Manufacturer or dealer (captive) financing | Often decided at the dealership | Set by the promotion | Fixed by the promotion | Credit tier, model, new or used | Strong credit, buying a model with a promo |
| Bank equipment loan | Often slower, faster for existing customers | Lender policy | Lender policy, usually tied to the machine's life | Tax returns, financial statements, cash flow, credit | Established businesses with a bank relationship |
| Credit union | Similar to a bank | Lender policy | Federal credit unions: 15-year statutory limit, with exceptions | Membership, then credit and cash flow | Members who want local underwriting |
| Online equipment lender | Often the fastest | Varies widely | Lender policy | Bank statements, revenue, credit | Newer businesses, used machines, tight deadlines |
| SBA 7(a) loan | Usually the slowest | Lender decides; SBA generally requires 10% from start-ups | Up to 10 years, longer if useful life exceeds 10 | Full SBA eligibility and credit review | Bundling the machine with other needs, lowest payment |
A dealer quote gives you a baseline, and one or two outside offers tell you whether it holds up. Our heavy equipment financing rates guide covers how lenders price construction machines.
Dealer and manufacturer financing
Many equipment makers run their own finance companies, often called captive lenders, and the dealer writes the contract at the counter. Promotional rates on new machines can be very low, but they usually come with conditions, such as a fixed term, specific models, a minimum credit tier and sometimes a choice between the low rate and a cash discount.
When the offer is either the low rate or the discount, the discount you give up works like interest paid on day one. Price the promotion against an outside loan on the discounted cash price before you choose.
Bank and credit union equipment loans
Banks often price equipment loans as a spread over the prime rate, which the Federal Reserve's H.15 release lists at 7.00% for October 5, 2026. Expect a fuller file than at the dealer: business and personal tax returns, financial statements, a debt schedule and a look at whether cash flow covers the new payment. Our equipment loan requirements guide lists what lenders typically ask for.
Credit unions work much the same way, with one gate up front. Federal law lets a federal credit union make loans "to its members, to other credit unions, and to credit union organizations," and it says maturities "shall not exceed 15 years, except as otherwise provided" (12 U.S.C. 1757, read October 6, 2026). You'll need to join before you apply.
The same statute sets a 15% interest rate ceiling and lets the NCUA Board set a higher one for periods of up to 18 months. In an action announced February 6, 2026, the Board extended a temporary 18% ceiling on loans made by federal credit unions through September 10, 2027 (NCUA).
Online equipment lenders
Online lenders and independent equipment finance companies often decide fastest and will look at businesses a bank passes on, such as a company with a short track record or a buyer picking up an older used machine. The trade-off is usually price, since rates are often higher and documentation or origination fees are common.
Before signing, ask three things. First, is the offer a loan or a lease, because a lease changes who owns the machine and how the end of the term works (equipment lease vs. finance). Second, is there a prepayment penalty if you refinance later. Third, what lien will the lender file, and does it cover only the skid steer or everything the business owns.
Lenders often shorten the term on older used equipment, which raises the payment. Our used equipment financing rates guide covers how used machines are priced.
SBA 7(a) loans for a skid steer
SBA's 7(a) loan page lists "purchasing and installation of machinery and equipment" as an eligible use, with a maximum loan amount of $5 million. The loan comes from an SBA lender and carries an SBA guaranty. SBA's 7(a) loan types page lists these versions, as read October 6, 2026:
| 7(a) type | Maximum loan | SBA turnaround |
|---|---|---|
| 7(a) Small | $350,000 | 2 to 10 business days |
| Standard 7(a) | $350,001 to $5 million | 5 to 10 business days |
| SBA Express | $500,000 | None listed; the lender makes the credit decision |
Those are SBA's own turnaround times, and a lender's underwriting and closing usually take additional time. SBA's terms and conditions page sets the rules that matter for a skid steer:
- Maturity: "Ten years or less, unless it finances or refinances real estate or equipment with a useful life exceeding ten years." SOP 50 10 8.1, effective October 1, 2026, lets an equipment term run up to 15 years if the IRS asset class useful life supports it.
- Variable rate caps: base rate (the prime rate or SBA's Optional Peg Rate) plus 6.5% for loans of $50,000 or less, plus 6.0% for $50,001 to $250,000, plus 4.5% for $250,001 to $350,000, and plus 3.0% above $350,000.
- Collateral: SBA doesn't require collateral on loans of $50,000 or less. Under SOP 50 10 8.1, on a 7(a) Small loan above $50,000 the lender must take a first lien on the assets financed with loan proceeds, with limited exceptions, and a loan request "must not be declined solely because collateral is inadequate."
- Fees: an upfront guaranty fee that the lender can pass to you, with amounts published each year by SBA notice.
For one $70,000 machine, an SBA loan can be more paperwork than it's worth. It fits better when you're bundling the skid steer with other equipment or working capital through an SBA loan, or when the lowest payment matters more than total cost.
In Canada, the Canada Small Business Financing Program (page modified June 22, 2026) is open to businesses with gross annual revenues of $10 million or less. Up to $500,000 of a loan can go to leasehold improvements and new or used equipment. Floating rates on term loans are capped at the lender's prime rate plus 3%, and there's a 2% registration fee on the amount loaned.
What a $70,000 skid steer costs under each option
The numbers below are assumptions, since prices, promotions and quotes vary. Assume a $70,000 new skid steer, $7,000 (10%) down and $63,000 financed with monthly payments. Fees, sales tax and insurance are left out. The assumed rates are 0% for 48 months from the dealer, 8.5% at a bank (the 7.00% prime rate plus an assumed 1.5 points), 8.0% at a credit union, 14.0% from an online lender, and 10.0% on a 7-year SBA 7(a) loan (the 7.00% prime rate as the assumed base rate, plus an assumed 3.0 points, under the 6.0-point cap for a loan this size).
| Option (assumed terms) | Rate | Term | Monthly payment | Total interest |
|---|---|---|---|---|
| Dealer promotion | 0% | 48 months | $1,312.50 | $0 |
| Bank | 8.5% | 60 months | $1,292.54 | $14,552 |
| Credit union | 8.0% | 60 months | $1,277.41 | $13,645 |
| Online lender | 14.0% | 60 months | $1,465.90 | $24,954 |
| SBA 7(a) | 10.0% | 84 months | $1,045.87 | $24,853 |
The promotion saves about $14,550 in interest against the bank loan with a nearly identical payment, which makes it hard to beat if you'd get no cash discount for skipping it. The SBA loan cuts the payment by about $247 a month against the bank, but the longer term adds roughly $10,300 in interest, before the guaranty fee. The online loan costs about $10,400 more than the bank over the same five years, so it makes sense mainly when speed or approval is the deciding factor.
▦Estimate your equipment financing paymentsRun the numbers in the equipment financing estimator →▸How to line up competing offers on a skid steer
Whichever lender you pick, it will usually take a security interest in the skid steer itself. Under UCC 9-103, a loan used to buy the machine is a purchase-money obligation, meaning "an obligation of an obligor incurred as all or part of the price of the collateral or for value given to enable the debtor to acquire rights in or the use of the collateral if the value is in fact so used," and lenders typically record their lien with a UCC-1 filing. Gather these before you shop:
- A written dealer quote with the model, attachments, price and the cash price if you skip any promotion
- Business tax returns and current financial statements, which banks and SBA lenders usually want
- Recent business bank statements, which online lenders often ask for
- A debt schedule showing current payments
IRS Publication 946 (the edition for 2025 returns, read October 6, 2026) says in its "What's New for 2026" note that for tax years beginning in 2026 the maximum section 179 deduction is $2,560,000, reduced by the amount the cost of section 179 property placed in service exceeds $4,090,000, the figures set by Rev. Proc. 2025-32. It also says the property must be acquired by purchase. Our Section 179 guide covers financed equipment, and your tax preparer can confirm how it applies to you.
EQ Funding is a marketplace, so one application for equipment financing goes to lenders in our network who compete for the deal. Approval and terms vary by lender, and outside offers give you something to hold up against the dealer's paperwork.