Equipment Financing and Business Credit: How to Grow Your Fleet Without Draining Cash Flow

by Joy Daniel on Aug 17, 2026 Categories: News

Buying another machine can create new opportunities for your business. It can also consume a significant amount of capital.

For contractors, rental companies, arborists, landscapers, construction companies and other equipment-dependent businesses, the question is not always whether the company can pay cash for a piece of equipment.

A better question is:

What is the most productive use of the company’s cash?

That is where equipment financing and business credit come together.

Equipment financing allows a company to acquire the machinery it needs while spreading the acquisition cost over time rather than committing the entire purchase price upfront. At the same time, establishing and responsibly managing credit in the company’s name can help create a stronger financial profile for future borrowing opportunities.

For a business owner, however, choosing the right equipment is only part of the equation. Understanding financing options, comparing rates and terms, navigating approvals, and getting a transaction funded can be just as important.

At Aerial Titans, we take that part of the equipment-buying process seriously.

That’s why we built Aerial Titans Finance, an in-house finance team dedicated to guiding our customers through the equipment financing process from application through funding.

Our team works on behalf of our customers to pursue competitive rates and terms, navigate the approval process, and move transactions efficiently toward funding so customers can put their equipment to work.

Peter Nguyen, Director of Finance Operations, and Brooke Shafer, Finance Specialist, bring decades of equipment finance experience to our customers. They understand that financing a piece of capital equipment can be a significant undertaking and, for some business owners, an entirely new process.

Their job is to help make it understandable. Peter and Brooke are a phone call, email, or text away to answer questions, explain options, and help customers through each step of the process.

In addition to selling new and used aerial equipment, Aerial Titans offers financing solutions for qualified business buyers. These programs can help companies acquire the equipment they need while preserving working capital, and certain qualifying programs may report payment activity to business credit rather than personal credit.

The goal is simple: help our customers acquire the right equipment, structure the right financing, and get to work.

The machine you finance today can solve an immediate equipment need.

The financial history your business builds along the way may help create more options when it’s time for the next one.

What Is Business Equipment Financing?

Business equipment financing allows a company to acquire machinery using financing instead of paying the entire purchase price in cash at closing.

Depending on the financing program, borrower and transaction, equipment financing may take the form of an equipment loan, lease or other commercial financing structure. The equipment itself may also factor into the lender's underwriting and collateral requirements.

For an equipment-dependent company, that could mean financing a: straight stick boom lift, articulating boom lift, telehandler forklift, scissor lift, tracked boom lift, forklift, material-handling machine or another piece of construction equipment.

Instead of moving a large amount of cash out of the business at once, financing can allow that asset to begin working while the cost is repaid over an agreed period.

That is one reason financing is so common in equipment acquisition. The Equipment Leasing & Finance Foundation's 2024 Horizon Report found that 82% of surveyed end users who acquired equipment or software in 2023 used at least one form of financing. Construction machinery was also among the most heavily financed equipment categories in the report.

But the more important point is why companies finance.

Equipment Financing Is Often a Cash-Flow Decision, Not a Cash-Shortage Decision

A successful business can have enough cash to purchase a $75,000, $150,000 or $250,000 machine and still decide to finance it.

Why?

Because cash sitting inside a business has value.

It can fund payroll. It can purchase inventory. It can cover repairs, transportation, insurance and fuel. It can help hire another employee, mobilize another crew, market the company or respond to an unexpected opportunity.

When cash is converted into a machine, it is still an asset, but it is no longer liquid working capital.

Financing can give a business an opportunity to put the equipment to work while retaining more of that cash for other priorities. Your existing financing guidance specifically identifies payroll, inventory, marketing and other operating expenses as reasons a company may want to preserve capital rather than purchasing equipment entirely with cash.

Equipment finance industry expert Leigh Lytle described just how central financing has become to business investment:

“The trillion-dollar equipment finance industry has always been the backbone of capital investment.” — Leigh Lytle, Equipment Leasing & Finance Association.

That does not mean financing is automatically better than paying cash. It means the decision should be evaluated in terms of capital allocation, not simply whether money is available.

What Is Business Credit and Why Does It Matter When Buying Equipment?

Business credit is the financial history attached to a company rather than an individual owner.

A commercial credit profile can contain information about payment history, outstanding obligations, credit utilization, trade experiences, public records and other information lenders may use when evaluating a company.

The U.S. Small Business Administration summarizes its value clearly:

“Establishing and managing business credit can help your company secure financing when you need it and with better terms.” — U.S. Small Business Administration.

That is important for equipment buyers because lenders evaluating a transaction may consider more than just the machine. Depending on the financing provider, they may evaluate the company's credit history, revenue and cash flow, time in business, existing obligations, the equipment being purchased and its value. Business credit gives lenders another financial history they can use to evaluate how your company has handled its obligations.

Equifax puts it more directly:

“Lenders rely on your business credit report to make funding decisions.” — Equifax.

That is why building business credit can matter long before you're shopping for your next boom lift or telehandler.

Equipment Financing and Business Credit Can Work Together

This is where Aerial Titans' financing approach becomes especially relevant.

Businesses sometimes assume that making payments on any business-related purchase automatically builds business credit.

That isn't necessarily true.

For payment history to contribute to a commercial credit profile, the creditor generally needs to report that activity to a business credit reporting agency.

A company could responsibly make payments on an obligation without necessarily receiving the business-credit-building benefit it expected if that lender does not report the account accordingly.

Aerial Titans lenders offers business financing programs that report payment activity to business credit rather than personal credit. For qualified businesses, that means purchasing the equipment your company needs can also contribute to building financial history in the company's name.

Experian explains why developing that profile can matter:

“Maintaining a strong business credit score can open doors to better financing opportunities and partnerships.” — Experian.

So instead of looking at equipment financing as an isolated purchase, owners can consider it as part of a longer-term financial strategy.

Buy the machine. Put it to work. Make the payments responsibly. Continue developing the financial history of the business.

Business Credit vs. Personal Credit: What's the Difference?

The simplest answer is:

Personal credit evaluates you. Business credit evaluates your company.

Personal credit is tied to your individual borrowing history, while business credit is associated with your company’s financial obligations and payment activity. For newer businesses, those two worlds can still overlap considerably, and an owner may need to provide personal credit information or sign a personal guarantee depending on the financing program.

The SBA notes that established businesses have an advantage because they have a financial history, while loan eligibility for newer businesses is often tied more closely to the owner’s personal credit score. Building business credit does not eliminate personal guarantees overnight. Instead, the goal is to begin creating a financial identity that belongs to the business itself, and that distinction becomes increasingly important as a company grows.

If every company purchase depends entirely on the owner’s personal borrowing profile, business expansion can begin to compete with personal borrowing goals such as purchasing a home, financing a vehicle, or maintaining available consumer credit. Developing business credit creates a separate financial track record that lenders can potentially evaluate as the business becomes more established.

Why Aerial Titans Offers In-House Equipment Financing

Shopping for heavy equipment already involves enough decisions.

What machine do you need? What capacity? What working height? What reach? New or used? How quickly does it need to be delivered? What does transportation cost? What payment structure works for the business?

Financing shouldn't feel completely disconnected from those questions. Aerial Titans offers in-house financing options so equipment and financing can be discussed as parts of the same purchase decision.

Our team already understands the equipment. We sell boom lifts, telehandlers, scissor lifts, tracked lifts and other specialized machines every day. That means the financing conversation starts with an understanding of the asset the customer is purchasing and how that machine may fit into the business.

Small-business financing itself comes from a wide variety of sources. Federal Reserve Governor Michael Barr noted:

“Small businesses access financing from diverse sources, including banks of all sizes, credit unions, online lenders, and other nonbank financing companies.” — Federal Reserve Governor Michael S. Barr.

Our goal is to make the equipment-financing portion of the buying process easier to navigate while keeping the equipment purchase itself at the center of the conversation.

Can You Finance Used Equipment?

Yes, depending on the equipment, borrower and available financing program.

Used equipment financing can be particularly valuable for companies trying to add productive fleet capacity while controlling acquisition cost. A used boom lift or telehandler may cost substantially less than the comparable new machine while still having years of productive service ahead of it.

Financing providers may consider the machine's age, value, purchase price, condition and expected useful life along with the financial profile of the applicant. When comparing new versus used equipment financing, consider more than purchase price.

Think about expected utilization, warranty coverage, hours, maintenance history, condition, available financing terms and how quickly the machine can begin earning or saving money for your operation.

For many contractors and rental companies, the best equipment decision isn't necessarily the newest machine. It is the machine that delivers the right combination of acquisition cost, productivity, reliability and return on investment.

What Do Equipment Financing Companies Look For?

There is no universal approval formula.

Financing providers establish their own underwriting requirements, and those requirements may change depending on the borrower, transaction amount and equipment. However, factors commonly considered can include business credit history, personal credit when applicable, cash flow, revenue, time in business, existing obligations, equipment value and the requested financing amount.

This is another reason to build financial strength before you urgently need another machine. Credit access remains a meaningful issue for small businesses.

Federal Reserve Governor Barr noted that the Fed's Small Business Credit Survey has identified credit availability as a challenge faced by more than a quarter of small businesses.

Being financially prepared does not guarantee approval, but it can make the business a stronger financing candidate.

How to Build Business Credit Before Your Next Equipment Purchase

There is no instant formula for establishing strong business credit. It is built through consistent financial practices over time.

A practical foundation includes:

Establish the business properly. Form the appropriate legal entity and maintain accurate registrations.
Obtain an EIN. Use your company's federal tax identification information consistently.
Maintain a dedicated business bank account. Keep business income and expenses separate from personal transactions.
Keep company information consistent. Your legal name, address, phone number and other identifying information should match across applications, registrations and financial accounts.
Work with creditors that report to business credit. Ask how account activity is reported rather than assuming every account will build commercial credit.
Apply strategically. Choose credit and financing that fits an actual business need rather than opening unnecessary accounts.
Pay obligations on time. Consistent payment history is an important part of creating a positive commercial financial record.
Monitor your business credit reports. Review your company's information for inaccurate balances, accounts, payment history or company details.

Business credit is a long-term asset. The goal isn't simply to qualify for financing today.

It is to create more financial options tomorrow.

Should You Finance Heavy Equipment or Pay Cash?

There isn't one correct answer for every company.

Paying cash may make sense when the purchase leaves the business with ample operating capital and the owner wants to avoid financing expense. Financing may make more sense when preserving liquidity is valuable, the machine is expected to contribute to revenue quickly, the company has other capital needs or the business wants to continue developing a commercial financing history.

One way to frame the decision is:

What will the financing cost and what can the company do with the cash it keeps?

If keeping $100,000 available allows a contractor to finance another project, mobilize another crew, cover payroll during a major job or pursue additional opportunities, that liquidity has economic value.
If the company has substantial excess cash and no more productive use for it, paying cash might be attractive.

Neither decision is universally right.

What matters is understanding how the equipment and the financing fit into the larger business plan.

Think Beyond the Monthly Payment

When comparing heavy equipment financing, it is easy to focus entirely on the monthly payment. But the machine itself matters more.

Ask what that equipment will allow your company to do.

Will it eliminate recurring rental costs?
Will it replace an unreliable machine?
Will it allow your company to bid jobs you currently cannot handle?
Could it support an additional crew?
Can it expand your rental fleet?
Will owning it reduce downtime?
Could it allow your business to take on higher-value work?

Those are the questions that turn financing from a monthly expense into an equipment investment decision.

Your existing equipment-finance guidance captures this distinction well: equipment financing should be viewed as part of a business-planning conversation, not merely a payment conversation.

Frequently Asked Questions About Heavy Equipment Financing

Does Aerial Titans offer equipment financing?

Yes. Aerial Titans offers in-house financing options for qualified business buyers purchasing new and used equipment. Our team can discuss financing as part of the equipment-buying process rather than requiring customers to treat financing as a completely separate transaction.

Can equipment financing help build business credit?

It can when the financing program reports payment activity to commercial credit bureaus. Aerial Titans offers business financing programs that report qualifying payment activity to business credit rather than personal credit.

Can I finance a used boom lift or telehandler?

Used equipment may qualify for financing depending on the borrower, machine and financing program. Equipment condition, age, value and purchase price may be considered along with the applicant's financial profile.

What credit score do I need for heavy equipment financing?

There is no universal minimum score that guarantees approval. Different lenders and programs use different underwriting standards. Credit history, revenue, cash flow, time in business, equipment value and other factors may all be considered.

Is business credit separate from personal credit?

Yes. Business credit relates to the company's financial history, while personal credit relates to the individual. However, financing providers may still review personal credit or require a personal guarantee depending on the business and program.

Is financing better than paying cash for equipment?

Neither option is automatically better. Financing can help preserve working capital and spread the acquisition cost over time, while paying cash avoids financing expense. The right decision depends on the company's finances, available terms and intended use of the equipment.

Build Your Fleet and Your Business With Aerial Titans

The right machine can expand what your company can do. The right financing strategy can help determine how quickly you can do it again.

Aerial Titans combines equipment expertise with in-house business financing options for companies purchasing the machinery they need to grow.

Whether you're looking for a boom lift, telehandler, scissor lift, tracked boom lift or other construction equipment, we can help you identify the right machine and explore financing options that fit the purchase.

For qualified businesses using programs that report to commercial credit, financing can also help build a financial track record in the company's name—giving the equipment purchase value beyond the machine itself.

Contact the Aerial Titans sales team at (855) 490-2662
www.aerialtitans.com

Smart Systems. Human Service. Real Machines. Coast to Coast.

This article is for general educational purposes and is not legal, tax or financial advice. Financing approval, rates, terms, reporting practices and qualification requirements vary by program, lender and applicant.