How to Finance a Skid Steer: A Comprehensive Guide

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‍If you’re in the market for a skid steer, you may be wondering how to finance this versatile piece of equipment. Skid steers are essential for various industries, including construction, landscaping, and agriculture. However, the cost of purchasing a skid steer outright can be prohibitive for many businesses. That’s where skid steer financing comes in. In this comprehensive guide, we’ll explore everything you need to know about financing a skid steer, from the benefits of financing to the different financing options available to you. So let’s dive in and learn how to make your skid steer dreams a reality.

Benefits of Skid Steer Financing

Before we delve into the nitty-gritty of skid steer financing, let’s first explore the benefits of financing this equipment rather than buying it outright.

1. Preserve Cash Flow

One of the primary advantages of skid steer financing is that it allows you to preserve your cash flow. Instead of tying up a significant amount of capital in a single equipment purchase, financing enables you to pay for the skid steer in manageable installments over time. This leaves your business with more working capital to invest in other areas, such as marketing, hiring, or expansion.

2. Flexible Payment Options

Skid steer financing offers flexible payment options tailored to your specific needs. Whether you prefer monthly, quarterly, or annual payments, you can work with a financing provider to customize a repayment plan that aligns with your cash flow and budget.

3. Tax Benefits

Financing a skid steer can also provide tax advantages for your business. In many cases, you can deduct the interest paid on your equipment loan as a business expense. Consult with a tax professional to understand the specific tax benefits available to you based on your location and circumstances.

4. Access to the Latest Models

By financing a skid steer, you gain access to the latest models and technology. Skid steers are constantly evolving, with manufacturers introducing new features and improvements regularly. Financing allows you to upgrade to newer models as they become available, ensuring that you have access to the most efficient and productive equipment for your business.

Skid Steer Financing Options

Now that we’ve explored the benefits of skid steer financing let’s dive into the different financing options available to you.

1. Equipment Financing Loan

An equipment financing loan is a popular choice for businesses looking to finance a skid steer. With this option, you borrow a specific amount of money from a lender to purchase the skid steer. The loan is secured by the equipment itself, meaning that if you fail to repay the loan, the lender can repossess the skid steer.

2. Equipment Lease

Another common financing option is to lease a skid steer. With an equipment lease, you make regular lease payments to the lessor in exchange for the use of the skid steer. At the end of the lease term, you may have the option to purchase the equipment at a predetermined price. This option is ideal for businesses that prefer to have access to the latest models and don’t want to deal with the hassle of selling or disposing of the equipment.

3. Dealer Financing

Many skid steer manufacturers and dealers offer financing options directly to customers. Dealer financing can be a convenient option, as it allows you to finance the skid steer and make the purchase in one place. However, it’s essential to compare the terms and rates offered by the dealer with other financing options to ensure you’re getting the best deal.

4. SBA Loans

Small Business Administration (SBA) loans are another financing option worth considering. The SBA partners with lenders to provide loans to small businesses, including those looking to finance equipment purchases. SBA loans typically offer favorable terms and interest rates, making them an attractive choice for businesses that meet the SBA’s eligibility criteria.

5. Equipment Rental

If you only need a skid steer for a short-term project or occasional use, renting the equipment may be a more cost-effective option than financing. Equipment rental allows you to access a skid steer without the long-term commitment of ownership or financing. However, it’s important to consider the rental costs over time, as renting for an extended period may end up costing more than financing or purchasing.

Factors to Consider Before Financing a Skid Steer

Before you jump into skid steer financing, there are several essential factors to consider to ensure you make the right decision for your business.

1. Budget and Cash Flow

Evaluate your business’s budget and cash flow to determine how much you can comfortably allocate to skid steer financing. Consider the impact that the monthly payments will have on your cash flow and make sure you can meet your other financial obligations.

2. Equipment Needs and Usage

Assess your equipment needs and usage to determine the right type of skid steer for your business. Consider factors such as the size, capacity, and attachments required for your specific projects. Choosing the right skid steer will ensure that you’re investing in equipment that meets your operational needs and maximizes your productivity.

3. Creditworthiness

Your creditworthiness plays a crucial role in securing favorable financing terms. Lenders will evaluate your credit history, business financials, and other factors to assess the level of risk associated with lending to you. Before applying for financing, review your credit report, address any discrepancies, and work on improving your credit score if necessary.

4. Down Payment

Consider whether you have the funds available for a down payment on the skid steer. While some financing options may offer 100% financing, others may require a down payment. A higher down payment can help lower your monthly payments and potentially secure more favorable financing terms.

5. Financing Terms and Interest Rates

Compare the financing terms and interest rates offered by different lenders or financing options. Carefully review the terms and conditions, including any fees or penalties associated with early repayment or default. Choose a financing option that offers competitive rates and favorable terms that align with your business’s financial goals.


Financing a skid steer can be a smart financial move for your business, allowing you to preserve cash flow, access the latest models, and enjoy tax benefits. By exploring the various financing options available and considering essential factors, such as your budget, equipment needs, and creditworthiness, you can make an informed decision that sets your business up for success. So don’t let the cost of a skid steer hold you back—explore skid steer financing options and take your business to new heights.

Additional Information:

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Looking for the best skid steer models to finance? Here are a few top picks:

  1. Caterpillar 259D – Known for its exceptional performance and versatility, the Caterpillar 259D is a popular choice among contractors.
  2. Bobcat S650 – The Bobcat S650 offers powerful performance and a spacious cab, making it a comfortable and efficient choice for demanding jobs.
  3. John Deere 324G – The John Deere 324G combines advanced technology with durability, making it an excellent investment for businesses seeking reliability.

Remember to thoroughly research each model, consider your specific needs, and consult with a reputable dealer or manufacturer to find the best skid steer for your business.

DISCLAIMER: The information provided in this article is for informational purposes only. It is not intended to be financial advice or a recommendation to purchase any specific skid steer model or financing option. Always consult with a financial advisor or professional before making any financial decisions.

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