4 Tips to Get Approved for Skid Steer Financing Quickly

Getting financing for a skid steer quickly can make a big difference for contractors, landscapers, and construction businesses. Whether you’re replacing broken equipment, adding skid steers to your fleet, or purchasing your first compact track loader, securing the right financing can help you meet demand without draining your cash flow. But the process isn’t always simple.

Lenders look at several factors before approving skid steer financing, including credit scores, business financials, and required documentation. Traditional financing options, like bank loans, can involve long approval times, while dealer financing might not always offer the best rates or flexibility. These delays can slow down operations, limit productivity, and make it harder to take on new projects.

The good news? There are steps you can take to speed up the process. In this guide, we’ll walk through five strategies to help you secure skid steer financing quickly so you can get back to business without unnecessary delays.

1. Establish and Maintain Strong Business Credit

Lenders rely on business credit to assess financial stability and risk. A solid credit profile can make the financing process faster and easier, helping you secure a skid steer loan or lease with better terms and lower interest rates. On the other hand, a weak or nonexistent business credit history can slow down approvals, lead to higher down payments, or even result in a denial.

If you want to speed up the approval process, strengthening your business credit is a smart first step. Here’s how to do it:

Make Sure Your Business is Properly Registered

Before lenders extend financing, they need to verify that your business is legitimate. If you haven’t already, register your business as an LLC, S-Corp, or C-Corp. This step helps separate personal and business finances—something lenders look for when evaluating creditworthiness.

Next, obtain an Employer Identification Number (EIN) from the IRS. Think of this as a Social Security number for your business. Many lenders require an EIN to process applications, and it’s also necessary for opening a business bank account.

Open and Use a Business Bank Account

Keeping business and personal finances separate is critical when building credit. A dedicated business bank account shows lenders that your company operates independently, and consistent deposits demonstrate stable revenue. Maintaining a healthy account balance also reassures lenders that you have the working capital to cover loan payments.

Get Listed with Business Credit Bureaus

Your business credit score is tracked separately from your personal credit, and lenders check this data when evaluating loan applications. The top reporting agencies include:

• Dun & Bradstreet (D&B): Many lenders check your D-U-N-S® Number to assess financial reliability. If you don’t have one, you can apply through D&B’s website.
• Experian Business and Equifax Business – Regularly reviewing your credit reports from these agencies helps ensure accuracy and prevents surprises when applying for financing.

Build Credit Through Business Accounts

Once your business is set up properly, start establishing credit by working with vendors, suppliers, and lenders that report payment history to business credit bureaus. A few effective ways to do this include:

• Using a Business Credit Card: Select a credit card designed for business use and make on-time payments. Regular usage, combined with responsible repayment, helps build a positive credit history.
• Setting Up Vendor Trade Lines: Some suppliers allow you to buy now and pay later. If they report to credit bureaus, these transactions contribute to your business credit score.
• Applying for a Business Line of Credit: Even a small equipment loan or business credit line can help establish your credit profile. The key is to borrow only what you can afford to repay.

Keep a Strong Payment History

On-time payments are one of the biggest factors influencing business credit scores. Late payments can quickly lower your score, making it harder to secure financing. To keep your credit in good standing:

• Always Pay Bills on or Before the Due Date: Consider setting up automatic payments to avoid missed deadlines.
• Keep Credit Utilization Low: If you have a business credit card, avoid maxing it out. Staying below 30% of your available credit limit signals to lenders that you manage debt responsibly.

2. Choose the Right Lender for Faster Processing

The lender you choose has a direct impact on how quickly you can secure financing, what interest rate you’ll receive, and how flexible your loan terms will be. While there are multiple financing options available, some lenders move faster than others, and not all provide the tailored solutions that businesses need when purchasing a skid steer or other heavy equipment.

To speed up the process and get the best financing terms, it’s important to understand the pros and cons of different lenders.

Traditional Banks: Lower Rates, Slower Process

Traditional banks have long been a go-to option for business financing, offering structured loan products with relatively low interest rates. However, their stringent approval criteria and lengthy underwriting process can make securing financing a challenge, especially for businesses needing quick access to funds.

Pros:

• Competitive Interest Rates: Banks often provide some of the lowest interest rates available, particularly for businesses with strong credit histories and substantial financial records.
• Long-Term Loan Structures: Many traditional bank loans come with extended repayment terms, helping to keep monthly payments manageable.
• Established Reputation: Working with a well-known financial institution can provide stability and a sense of security in your financing arrangement.

Cons:

• Lengthy Approval Process: Loan approval can take several weeks, often delaying essential equipment purchases or business expansion plans.
• Strict Documentation Requirements: Banks typically require extensive financial statements, tax returns, business plans, and credit histories, which can slow down the application process.
• High Credit Score Thresholds: Businesses with lower credit scores, limited credit history, or inconsistent cash flow may struggle to qualify for bank loans.

Best for:

Established businesses with strong credit profiles and stable revenues and can afford to wait for a lengthier approval process in exchange for lower interest rates.

Dealer Financing: Convenient, But Limited

Many skid steer equipment dealers offer financing directly at the point of sale, making it a hassle-free option for buyers who want a streamlined purchasing process. In some cases, dealerships provide special promotional financing—such as 0% interest—for highly qualified buyers. However, dealer financing is typically tied to specific lenders, meaning loan terms and interest rates can be less competitive than those found through independent financing options. Additionally, dealerships may factor financing incentives into the overall equipment cost, potentially leading to higher prices.

Pros:

• Simple Application Process: Financing can often be arranged directly through the dealership at the time of purchase, eliminating the need for a separate loan application.
• Promotional Financing Offers: Buyers with excellent credit may qualify for special promotions, such as 0% financing or deferred payment options.
• Bundled Purchase Experience: Since financing and equipment selection are handled in one place, the process can be more convenient and time-efficient.

Cons:

• Limited Lending Options: Dealer financing is usually tied to specific lenders, which may not always provide the best interest rates or loan terms.
• Potentially Higher Equipment Costs: Some dealerships offset promotional financing by increasing equipment prices or reducing the room for price negotiations.
• Less Flexibility: Businesses looking to purchase from private sellers or finance used equipment may find dealer financing restrictive or unavailable.

Best for:

Buyers with excellent credit who plan to purchase new skid steer equipment directly from a dealership and want a simple, all-in-one financing option.

Specialized Equipment Financing: Fast, Flexible, and Tailored for Your Business

Specialized lenders, such as CFF, are all about providing quick and flexible equipment financing solutions tailored to businesses of all sizes. Unlike traditional banks, which require lengthy approval processes, or dealer financing, which limits purchasing options, specialized equipment financing allows businesses to secure funding quickly—often within 24 hours. This makes it an ideal choice for companies that need to move fast on an equipment purchase without facing unnecessary delays.

At CFF, we understand that every business has unique financial needs. That’s why we offer customized loan structures, competitive interest rates, and financing options that work with your cash flow—without hidden dealer markups or restrictive lending terms.

Pros:

• Fast Approvals: Get approved in as little as 24 hours, allowing you to secure the equipment you need without delays.
• Flexible Loan Options: Financing solutions are tailored to fit your specific business needs, cash flow, and budget.
• Competitive Interest Rates: Unlike dealer financing, online lenders like CFF provide transparent, competitive rates without inflating equipment costs.
• Easier Qualification: Businesses with moderate credit or newer companies may find it easier to qualify compared to traditional banks.
• No Purchase Restrictions: You can buy equipment from any supplier, including dealerships, auctions, and private sellers, giving you complete purchasing freedom.

Best for:

Businesses that need fast, flexible financing without the restrictions of banks or dealers. CFF provides a seamless, efficient lending experience so you can secure the equipment you need and keep your operations running smoothly.

3. Consider a Larger Down Payment or Collateral

A down payment serves as an upfront investment in your skid steer equipment, reducing the amount a lender must finance. Because lenders take on less risk when financing a smaller loan, offering a larger down payment can accelerate approval, improve loan terms, and lower overall borrowing costs. For businesses with lower credit scores or limited credit history, a substantial down payment can be the key factor in securing approval.

Why a Larger Down Payment Helps

Increasing your down payment can provide several financial advantages, including:

• Faster Approval Times: Lenders often process smaller loan amounts more quickly because they pose less risk. A larger down payment can push your application through underwriting at a faster pace.
• Better Loan Terms: Borrowers who put more money down may qualify for a lower interest rate, reducing the total cost of the loan over time.
• Lower Monthly Payments: Financing a smaller portion of the skid steer’s price means lower monthly payments, freeing up working capital for other business expenses.

For companies with weaker credit profiles, providing a higher down payment can make the difference between approval and denial by reducing the lender’s risk.

How Much Should You Put Down?

The typical down payment for skid steer financing ranges from 10% to 20% of the equipment’s purchase price. However, the exact amount required depends on several factors:

• Creditworthiness: Businesses with strong credit histories may qualify for lower down payments or even $0 down financing.
• Lender Policies: Some lenders offer zero-down financing, but these loans often come with higher interest rates or stricter repayment terms.
• Equipment Type & Condition: Used skid steers are considered higher risk and typically require larger down payments compared to new ones.

For most businesses, a 15-20% down payment is a smart strategy to increase approval odds and minimize financing costs over the long term.

How a Larger Down Payment Can Help

Consider a small excavation business looking to finance a skid steer. The business has a limited credit history, making lenders hesitant to approve the loan. To strengthen their application, they offer a 15% down payment, reducing the loan amount and lowering the lender’s risk. As a result, they secure financing faster and qualify for a lower interest rate, making their loan more affordable and sustainable over time.

4. Apply for Pre-Approval to Avoid Delays

Securing skid steer financing quickly isn’t just about finding the right lender—it’s also about getting ahead of the process. One of the best ways to speed up approval and avoid unexpected obstacles is to apply for pre-approval before you start shopping for equipment.

Pre-approval allows you to understand your financing options upfront, ensuring a smoother transaction when it’s time to make a purchase. Instead of waiting until you find the right skid steer and then scrambling to arrange funding, pre-approval gives you a clear picture of your loan eligibility in advance. Here’s why it’s a smart move:

• Clear Loan Terms Before Committing: Instead of guessing about interest rates, repayment terms, or down payment requirements, you’ll know exactly what to expect before making a decision.
• Faster Final Approval Process: Since the lender has already reviewed your financial standing, the final approval and funding process moves much faster once you’ve chosen your skid steer.
• Better Budgeting and Negotiation Power: Knowing your approved loan amount helps you stay within budget and gives you leverage to negotiate better pricing with sellers.

Steps to Get Pre-Approved Quickly

Getting pre-approved for skid steer financing doesn’t have to be complicated. Here’s how to make the process as quick and efficient as possible:

1. Research lenders that specialize in equipment financing. Some lenders, like Commercial Fleet Financing (CFF), focus specifically on construction and heavy equipment, offering fast pre-approvals tailored to your business’s needs.
2. Submit basic business and financial details. Most lenders require minimal documentation at this stage, such as business credit information, revenue details, and estimated equipment costs.
3. Review loan offers and terms. Once pre-approved, compare options like loan amounts, interest rates, and repayment schedules to find the best fit.
4. Obtain a pre-approval letter. This document demonstrates your buying power and shows sellers that you’re a serious buyer, which can help in negotiations.

At Commercial Fleet Financing, we make pre-approval simple. Businesses can get pre-approved in minutes, ensuring they’re ready to buy the moment the right skid steer becomes available.

Get Fast, Flexible Skid Steer Financing with Commercial Fleet Financing

Securing financing for skid steers or any kind of heavy equipment you might need quickly doesn’t have to be a challenge. By building strong business credit, choosing the right lender, offering a solid down payment or collateral, and getting pre-approved, you can streamline the approval process and get the equipment you need without unnecessary delays.

At CFF, we specialize in fast, hassle-free financing solutions designed for contractors, landscapers, and construction businesses. Our approval process is built for speed and flexibility, ensuring you can get pre-qualified in minutes and secure funding within 24-48 hours.

If you’re ready to move forward with your skid steer or construction equipment purchase, explore your financing options with CFF today. Whether you need funding for a new or used skid steer, compact track loader, or mini excavator, we’ll help you find a cost-effective solution that fits your budget and business goals. Contact us today to get started.