Have you ever wondered, “I need a few of those… but the way do people afford them as well?” after seeing a Bobcat skid steer? You’re not by yourself. These machines can be game-changers on job sites, but buying one outright? Not always realistic. That’s where financing comes in. In this guide, we’ll break it all down—plain and simple. From loan types to application tips, you’ll walk away knowing exactly what to expect (and what to avoid).
Table of Contents
How Does Bobcat Skid Steer Financing Work?
An Introduction in Bobcat Skid Steers Financing
Bobcat Skid Steer Financing: Which Are That?
One of the many small, agile parts of machines you’ve undoubtedly seen rushing within building sites is a Bobcat skid steer Financing. Lifting, digging, grading, you name it with that little rectangular device alongside arms on the side. Consider it the Swiss Army knife of little tools.
Why Are They So Well-liked in Landscaping and Construction?
due to their extraordinary versatility. Need to clear snow? Attach a snow blower. Moving dirt? Bucket attachment. Tight job site? No problem. That’s why contractors, landscapers, even farmers love them. They do a lot with a small footprint.
The Cost of Buying a Bobcat Skid Steer Financing Outright
Typical Price Range for Bobcat Skid Steers Financing
Bobcat skid steer financingtractor aren’t just affordable, let’s face that. The price range may range from $25,000 to more compared to $60,000, depending on the car’s specs and attributes. And that’s just the base machine. Add attachments, and the price climbs quickly.
Financial Burden for Small Businesses or Contractors
For a solo contractor or a small business, dropping tens of thousands in cash just isn’t realistic. It could wipe out savings or tie up capital that could be better used elsewhere—like payroll or marketing.
Why Bobcat Skid Steer Financing Makes Sense
Easier Cash Flow Management
Bobcat Skid Steer Financing spreads out the cost over months or years. That means you’re not depleting your bank account all at once, which is kind of a relief.
Opportunity to Get Better Equipment Sooner
Instead of settling for a used machine or waiting until you’ve saved enough, financing lets you access high-quality equipment right now. And that could lead to more jobs and better productivity.
Business Tax Advantages
There are potential tax deductions for equipment financing. Section 179 of the IRS tax code might let you deduct the full purchase price. (Obviously, check with your accountant, but it’s a real perk.)
Types of Bobcat Skid Steer Financing Options
Dealer Bobcat Skid Steer Financing
Most Bobcat Skid Steer Financing dealers offer in-house financing. This is often the easiest route since they already know the equipment. You can sometimes get special offers like 0% APR for a limited time.
Bank Loans
More traditional, but they often come with more paperwork and stricter credit requirements. That said, you might get a lower interest rate if your credit’s solid.
Leasing vs Financing
This part trips a lot of people up. Let’s break it down.
Operating Lease
You’re essentially renting the skid steer. It doesn’t go on your balance sheet, and at the end of the lease, you return it. Good if you want the latest model every few years.
Capital Lease (Finance Lease)
This is closer to a loan. You’ll eventually own the machine after making all your payments. It shows up as an asset and liability on your books.
Understanding the Bobcat Skid Steer Financing Application Process
Eligibility Requirements
Generally, you’ll need to be in business for a certain period (often 1-2 years), and they’ll want to see that you can actually repay the loan.
Credit Score Considerations
Credit scores matter. A score of 650+ will open more doors, but don’t panic if you’re under that. Some lenders work with credit-challenged buyers—they might just ask for a larger down payment.
Documents You’ll Need
- Business license
- Tax ID number
- Recent bank statements
- Tax returns
- Personal and business credit reports
It’s not as scary as it sounds—think of it as showing you’re responsible.
Terms and Conditions to Watch Out For
Interest Rates
Rates vary widely—anywhere from 4% to 18%. Depends on your credit, the term, and who you’re borrowing from.
Repayment Period
Terms usually range from 24 to 72 months. A longer term lowers the monthly payment but increases the total interest paid.
Penalties and Fees
Late fees, early repayment penalties, insurance requirements—they all sneak in. Always read the fine print. Twice.
Tips to Get Approved for Bobcat Skid Steer Financing
Improve Your Credit Profile
Pay off small debts, correct errors in your credit report, and avoid opening new credit lines right before applying.
Show a Solid Business Plan
If you’re new, lenders want to see that you’ve thought things through. A clear business plan helps build trust.
Offer a Down Payment
Even 10–20% can help. It reduces the lender’s risk and might get you better terms.
Real-World Example of a Financing Scenario
Let’s say your financing a 40 thousand dollars Bobcat over 60 months with a 10% deposit as well as 6% interest. That amounts to a down payment of $4,000 and monthly payments of about $700. Manageable, especially if the machine helps bring in $5,000 a month in jobs.
Pros and Cons of a Bobcat Skid Steer Financing
Pros
- Keeps your cash flow intact
- May offer tax deductions
- You can upgrade sooner
Cons
- Interest adds up
- You’re locked into a monthly payment
- Equipment depreciation
Is It Better to Lease or Finance a Skid Steer?
Short-Term vs Long-Term Use
If you need it for a 6-month project, leasing might make more sense. But if it’s a long-term investment, buying is probably smarter.
Ownership Goals
Do you want to own the machine at the end? Then financing is your path.
What Happens at the End of the Financing Term?
With financing, once the final payment’s made, the skid steer is yours—simple as that. With a lease, you return it or buy it for a predetermined amount.
Where to Find the Best Bobcat Financing Deals
Authorized Dealers
Always a good first stop. They know the equipment and often have exclusive promotions.
On the internet Financing Companies for Equipment
Rapid approvals are offered by firms like Currency, Balboa was Capital, and Crest Capital, especially to startups.
Common Mistakes to prevent in Financing
- Ignoring the total cost after interest
- Not budgeting for maintenance and insurance
- Overestimating your monthly income
- Choosing too short (or too long) of a term
- Forgetting to compare offers
Final Thoughts: Is Bobcat Skid Steer Financing Right for You?
Only you can answer that. But if the alternative is draining your savings or putting off growth, then yeah—financing can be a pretty practical solution. Just make sure that your recurring expenses align with your business objectives and the allocated funds.
FAQs
1. In order to purchase a Bobcat skid steer, what credit score is required?
Although certain financial institutions offer programs for lower scores, generally speaking, a score of 650 or higher is preferred.
2. Is it feasible to finance used Bobcat skid steers?
Yes, even though rates of interest might be a little higher, a lot of lenders finance refurbished machinery.
3. For how long has it possible to finance a Bobcat skid steer?
According to the lender and your credit history, financing terms typically vary from two to six years.
4. Does financing instruments necessitate insurance?
Yes, most lenders will require proof of insurance to protect the asset.
5. Which is a typical rate of interest for financing a skid steer?
With respect to credit, deposit, and terms length, rates can vary from approximately 4 to 18%.
Conclusion
It’s easy to get financing for a Bobcat skid steer. It can serve as the link between your company’s current state and its ideal future in a little preparation and astute planning. Having the proper tools is important whether your goal is to expand, take on more challenging tasks, or simply work more productively. And
Read More:
How to Meet Bobcat Financing Requirements: A Complete Guide
Where to Find the Best Bobcat Equipment Financing Deals?