Sterling, CO contractors pay for skid steers and trucks with equipment financing, and carry materials and payroll on long jobs with working capital or a line of credit. Splitting the machine from the cash gap keeps each cost on the right schedule.
Brookmark Financial in Sterling, Colorado explains contractor financing options and passes requests to funding partners, who review them and decide.
Skid steers and trucks on an equipment loan
Skid steers, compact track loaders, mini excavators, dump trucks and flatbeds are financed with equipment financing, with the machine as security. The partner reads the quote, the machine's details and the contractor's records.
Trucks and trailers are titled, so the partner records a lien on the title. Attachments, such as buckets, forks, augers and breakers, can be added to the machine's financing if they are on the same invoice. A contractor buying several machines at once can ask for one agreement that covers all of them.
Construction had 44 employer establishments with 247 paid employees in Logan County, CO in 2023, and 29 of them had fewer than five employees (County Business Patterns).
Materials and payroll on long jobs
Long jobs mean paying for materials and crews before the customer pays. Draw schedules, inspections and retainage stretch the wait. No machine loan fixes that gap; it is a timing problem in the cash.
The size of the gap is the key number. Add up the payrolls, the materials bills and any equipment payments due before the next draw arrives, then subtract the cash on hand. What is left is the amount to ask for, and the draw date is the date it should be repaid.
Illustration only, invented figures: a contractor with a biweekly payroll of $9,800 waits 60 days for a draw. 4 or 5 payrolls fall in that wait, depending on where the paydays land (our arithmetic: 60 days is a little over four two-week periods), a gap of $39,200 to $49,000. Working capital or a line sized to that figure covers it.
Used construction equipment: what lenders check
Used machines are financed when their value can be checked. Expect to provide the serial number, hours, photos, the seller and the price. Machines bought at auction need the bill of sale; private sales need proof of ownership.
A partner may also ask how many hours the contractor expects to put on the machine each year. A used skid steer with high hours and a light workload can be a sound buy; the same machine on a heavy schedule may need replacing before the loan is paid off.
- Hours and maintenance history.
- Inspection for larger machines.
- Title or bill of sale.
- Quote or listing with the price.
Credit line or working capital for a contractor
A line of credit suits repeat, short costs: materials for small jobs, fuel, repairs and the gap between invoices. Working capital suits one known gap, such as the payrolls before a delayed draw. A contractor that faces both can use both, as long as the total payments fit the cash flow.
Some contractors keep a line open all year and draw only when a job runs long. Others take a short working capital loan once or twice a season. Either works if the balance comes back to zero between jobs; a line that stays fully drawn for months is a sign the business needs a longer-term answer.
Specialty trade contractors counted 26 employer establishments in Logan County, CO in 2023 (County Business Patterns).
A skid steer and a 60-day draw wait, priced out
Illustration only, invented figures: a contractor buys a skid steer for $64,000, puts $9,000 down and finances $55,000 at an annual rate of 9.5% over 48 months: about $1,382 a month, $66,325 in total. In the same season, a 60-day draw wait leaves a payroll gap of $39,200 to $49,000. The two needs are priced separately, and the contractor checks that the machine payment and the short loan payment fit together.
Tie each machine to the work it will do. A skid steer that replaces rented equipment can be compared with the rental bills of the last season; if the payment is lower than what the contractor paid in rent, the purchase pays its own way. If it is higher, the extra work the machine brings has to close the difference.
The construction page covers retainage and mini excavators in more detail.
Contractor funding questions heard around Logan County, CO job sites
Contractors ask whether a machine can be financed before a job is signed (yes, though signed work helps), whether a bond is needed (not for equipment financing), and whether a sole owner can apply (yes; personal and business records are read together).
Another common question is whether to finance through the dealer or bring outside financing to the dealer. Both are possible; the dealer price should be the same either way, so ask for the cash price in writing before discussing financing. Keep every quote, because a partner will want to see the one the request is based on.
Send the machine quote and the draw schedule through the request form or by phone.
By Brookmark Financial · Updated
