Automotive & Equipment
Business Funding for Equipment Rental Businesses
Equipment rental is a capital-intensive business where your inventory is the product. You need to own or finance the excavators, skid steers, aerial lifts, and generators that customers rent by the day, week, or month. Utilization rate is everything. Equipment sitting idle costs you money every day in depreciation and loan payments. Growing your fleet to serve more customers requires significant upfront investment.
Common Uses
What Equipment Rental Businesses Use Funding For
- Purchase excavators, skid steers, scissor lifts, and boom lifts to expand the rental fleet
- Add delivery trucks and trailers for equipment transport to job sites
- Build or expand a rental yard with secure storage, maintenance bays, and a customer counter
- Invest in rental management software for tracking utilization, billing, and maintenance schedules
Funding Options
Best Funding Types for Equipment Rental Businesses
Equipment Financing
The backbone of rental business financing. Fund each piece of equipment individually and spread the cost over its useful rental life. Lenders evaluate rental equipment based on its expected utilization rate and market rental rates.
Floor Plan Financing
Similar to auto dealer floor plans, this lets you finance multiple units at once with a revolving facility. As you sell or return equipment, the line replenishes for new purchases. This is how larger rental companies manage fleet turnover.
SBA 7(a) Loan
Fund the startup or acquisition of a rental business including the initial fleet, yard improvements, and operating capital. SBA loans work well for the first major equipment purchase before you have rental revenue history to support conventional financing.
What Lenders Look For
Qualification Notes for Equipment Rental Businesses
Related Industries
Related Automotive & Equipment Funding
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