Excavator Finance
Finance for mini excavators to 50 tonne machines matched to the right lender, structure and terms.
Whether you're buying your first mini excavator or adding a 30-tonner to an established fleet, getting the finance structure right matters.
Sierra Finance is a Melbourne-based equipment finance broker with access to 50+ lenders who understand earthmoving equipment.
We match excavator purchases to the right lender, structure, and terms, with most approvals back within 24 to 48 hours.
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How Excavator Finance Works
Most excavator purchases are financed under a chattel mortgage. You own the machine from day one, claim GST on the purchase price, and the interest and depreciation are tax-deductible. For civil and earthmoving operators running through a company or trust structure, this is usually the most straightforward option.
That said, it's not the only structure available. Commercial hire purchase works similarly but suits different accounting treatments. Finance leases and rentals can make sense for operators who prefer to keep equipment off the balance sheet, or who upgrade machines on a regular cycle and don't want to deal with disposal. Operating leases are less common for excavators but come up occasionally on larger fleet deals.
The right structure depends on your business setup, your accountant's preference, and how long you plan to keep the machine. A good broker doesn't just find you the cheapest rate. They make sure the structure actually fits how your business works.
Loan terms typically run between 3 and 7 years. Shorter terms mean higher repayments but less interest overall. Balloon or residual payments can be structured into the loan to reduce your monthly repayments and free up cash flow, which is worth considering if you're running multiple machines.
What You Can Finance With Excavator Finance
We finance excavators across the full range, from 1.7-tonne mini excavators used on residential sites through to 50-tonne-plus machines working in civil construction and demolition.
New and used machines are both covered. Unlike some banks that put strict age limits on equipment, we work with lenders who are comfortable financing older excavators, including machines that are 15 or 20+ years old, provided the deal is structured correctly. The key is matching an older machine to a lender that has appetite for that asset age, rather than forcing it through a lender that'll either decline it or overcharge on rate.
Dealer purchases, private sales, and auction buys are all handled. For private sales, we manage the settlement process between you and the seller, arrange finance inspections where required, and complete PPSR searches to make sure the machine isn't encumbered or a write-off. You negotiate the price, we handle the rest. Excavator finance is one of our most common machinery and equipment finance files.
All major brands are financed. Komatsu, CAT, Hitachi, Kobelco, Kubota, Volvo, Yanmar, Doosan, Sany, and others. Brand doesn't change whether we can finance it, though it can influence which lender offers the best terms.
Finance amounts generally range from $20,000 to $2,000,000, depending on the machine and your borrowing capacity.
Who Excavator Finance Is For
Excavator finance through Sierra is built for operators in civil construction, earthmoving, demolition, landscaping, and site preparation. That covers a wide range of businesses:
Owner-operators buying their first machine to move off hire and start building equity in their own gear. Subcontractors adding capacity to take on bigger jobs. Established earthmoving businesses upgrading or expanding their fleet. Many earthmoving operators also finance bulldozers alongside their excavator fleet
We work with ABN holders from start-ups through to long-established companies. If you're a newer business, low-doc options are available — these rely on BAS statements, bank statements, or a clean finance reference rather than full financials. No deposit is required with many lenders, though having some skin in the game can help on rate if you're in a tighter credit situation.
For operators working across both civil and agricultural sectors, we also handle farm machinery finance.
If you've got defaults or a lower credit score, that's not an automatic no. We work with lenders who assess the full picture — why the default happened, what your business looks like now, and the strength of the deal overall.
Why Use a Broker for Excavator Finance
Going direct to your bank for an excavator loan is the default for a lot of operators, but it's rarely the best move. Banks have a fixed credit appetite. If your deal doesn't fit their box, you either get declined or pushed into a structure that costs more than it should. You won't know whether a better option existed because you only saw one offer.
With excavators specifically, the asset age issue is where most operators get caught out. A lot of banks have hard cutoffs on equipment age. They won't finance anything older than 10 or 15 years, or they'll only lend to a certain percentage of the machine's value. If you're buying a used excavator at a good price, the bank's restrictions can kill the deal. A broker has access to lenders with genuine appetite for older earthmoving equipment, and can place the deal where it actually fits.
The other common issue is dealer finance. Brands like Komatsu, CAT, and Volvo offer their own finance, sometimes at headline rates of 0% or 1.99%. These deals can genuinely be competitive, but often the low rate is built into the machine price, and the structure is inflexible (fixed term, no balloon, limited early payout flexibility). It's always worth comparing against an independent finance offer to see the total cost of each option.
A broker also protects your credit file. Every formal application hits your credit report. If you apply to two or three banks trying to find the best deal yourself, those enquiries stack up and can work against you. We know which lender is most likely to approve your specific deal before we submit, so one application gets the job done.
Get a Free quote on Excavator Finance
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How Excavator Finance Works
The process is straightforward.
First, you get in touch by phone or online enquiry. We'll ask about the machine you're looking at (or planning to look at), your business structure, how long you've been operating, and what you need from the finance. This is a 5 to 10 minute conversation, not an interrogation. We'll give you a realistic idea of what to expect on rate and repayments before anything is submitted.
Second, we match your deal to the right lender from our panel of 50+ and submit for approval. For straightforward applications with an established ABN, clean credit, and a standard asset, approvals typically come back within 24 to 48 hours. More complex deals (higher amounts over $250,000, newer businesses, credit issues) might take a couple of extra days as additional documentation needs to go to the lender.
Third, once approved, we handle settlement. For dealer purchases, we liaise directly with the dealership. For private sales, we coordinate the payout to the seller, handle the PPSR registration, and make sure everything settles cleanly. You get the machine, the seller gets paid, and the paperwork is done.
Frequently Asked Questions
Get a Free quote on excavator finance
Talk to a broker who understands earthmoving equipment - no obligation, fast response.