The Ultimate Price Guide to Backhoe Financing

Do you need a new backhoe or backhoe loader, but don’t know where to start? Check out this pricing guide for renting vs. purchasing backhoes categorized by size and type. Then, we’ll dig deeper to help you decide whether purchasing or renting a new or used excavator be the most cost-effective method of financing for your new heavy equipment.

Average Backhoe Prices for Renting

Note: The prices listed below are averages. Variables including location, security deposit policies, whether or not you need an operator included, and the addition of extra extensions to your machine will all affect the total renting price.

Average Backhoe Prices for Purchasing

Note: The higher the price, the more powerful the machine, the deeper it can dig, and the farther it can reach.

Average Additional Prices

Note: The prices listed below are averages, and are subject to change depending on dealer policies, location, and the nature of the projects involved.

Renting Vs. Purchasing Backhoes: 3 Factors

When it comes time to financing your backhoe, the decision of whether to rent or own your new equipment is one that should be taken with caution. You don’t want to pay too much for something you don’t have to, but you also don’t want to underpay for equipment you’ll need regularly. It all comes down to these 3 factors:

• What Kind of Project(s) You’re Using it For
  
• How Often You Need Your Equipment
• Your Chosen Method of Financing

Bigger projects typically call for weekly or even monthly use of excavation equipment. While the smaller prices of renting equipment may sound appealing, long-term renting eventually adds up, and construction business owners can quickly find themselves paying way more than the purchase price of the backhoe itself.

Then again, if your company does not need excavation on a regular basis, but only for one-and-done projects every now and then, then renting equipment may be the choice for you.

Pros of Purchasing

• Faster ROI: Consider this—if you’re spending tens to hundreds of thousands of dollars every year on renting heavy equipment, then your  in as little as 1-3 years!
• Take on More Projects: Something else to consider: purchasing your own backhoe can open up your business to taking on a much wider variety of projects, effectively giving your business a whole new network of revenue streams.

Pros of Renting

• One-Time Payments for Attachments & Extra Features: Instead of purchasing an attachment that you’ll only use once or hiring someone to operate the backhoe, renting these features promises that you’ll only pay for what you use.
• Lower Initial Costs: Pay in hourly, daily or weekly increments, instead of paying a lump sum up front.
• More Control over Payment Frequency: If you’re a company that isn’t in constant need of excavation, or even if you need a backhoe for a single big project, then renting may be the most cost-effective method of financing for you.

How to Pay Like a Renter AND Own Your Equipment:

What if we told you that there were backhoe financing options available that gives contractors the ability to pay small amounts periodically as if they were renting heavy equipment, with the end result of owning their new backhoe once the entire cost is paid off?

Now, what if I told you that these financing options are also helping contractors save anywhere from tens to hundreds of thousands of dollars every year, while helping them gain working capital at the same time? And what’s more, they’re available to all construction business owners, regardless of credit score and financial history!

The 4 Best Backhoe Financing Options

• Construction Equipment Financing: Through this method, the only collateral a construction business owner leverages is the new equipment itself. This is one of the fastest methods of financing backhoes, and heavy equipment of all types, with funds typically available within 24 hours of applying.
• Construction Business Loans: Construction small business loans are often the fastest, easiest loans to get. Loans for contractors come with terms that accommodate specifically to the construction industry. Choose from a variety of loan options—would you prefer a fixed or flexible repayment schedule? Short or long term repayment? When it comes to construction loans, the decision is up to you.
• Construction Business Lines of Credit: This is by far the most flexible financing options construction businesses can get their hands on. Immediate access to huge amounts of capital on hand and the ability to only pay for what you use makes this among the favorite financing methods for contractors nationwide.
• Hybridge SBA Loans™: Do you want the prime rates, large amounts and lengthy terms of SBA loans, but can’t wait for funding? Or maybe you can’t get approved due to your credit score, or even something as small as a tax lien? With our new Hybridge SBA Loan, contractors and construction businesses are able to finance new machinery in as little as 24 hours with our 90% approval rate! No more wait times=more projects done faster.

Apply for Backhoe Financing Today, Get Funding Tomorrow!

NBC has a reputation for getting construction owners the funds they need, when they need it. Click the link here to fill out our 1-minute application online and get what you need in as little as 24 hours—or call (877) 482-3008 to speak with one of our Business Financing Advisors, and see if construction business financing is right for you!

About the Author, David Surrusco

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David Surrusco is a Content Writer at National, best known for his work in creating what has become the best blog regarding business growth known to mankind: The National Advisor.