Why Construction Equipment Remains the Gold Standard for Lenders in 2026
The ranking
- Construction equipment has been ranked as the #1 preferred equipment type for finance companies for 12 consecutive years, per the Alta Group's 2026 survey MonitorDaily.
- The total construction equipment finance market is forecasted to reach $104.1 billion by the end of 2026 Global Market Insights.
How we read it
This long-standing ranking signifies that banks and private lenders view skid steers and track loaders as low-risk assets. When an asset class is a perennial favorite, it indicates high liquidity; lenders have a clear understanding of how to value your equipment, which simplifies the underwriting process. While retail and auction prices have seen a recent cooling, the fact that this remains the top category suggests that the market’s underlying demand is robust enough to outweigh temporary price fluctuations.
Why this matters for Small to mid-sized construction business owners and independent contractors looking to acquire or upgrade their skid steer fleet with efficient, low-interest capital.
For the independent contractor, this industry-wide confidence is a significant advantage. When lenders are eager to finance construction equipment, they are often willing to offer more aggressive, low-interest terms to secure your business. Because these assets hold their value well in the secondary market, you may find it easier to qualify for equipment loans compared to other types of machinery, as the lender views the equipment itself as a reliable form of collateral.
If you are looking to upgrade your fleet, this environment provides a prime opportunity to secure capital with favorable repayment structures. With the market projected to grow to over $100 billion, lenders are competing for your business, which can result in reduced down payment requirements or more flexible seasonal payment schedules tailored to your construction cycle. Aligning yourself with a lender that recognizes the strength of the skid steer market can lead to a lower total cost of ownership.
Bottom line
Construction equipment’s 12-year dominance as a preferred lending asset confirms that contractors have sustained access to competitive capital for their equipment needs. This lender confidence translates into better financing terms and easier qualification for owners looking to scale their operations.
Check your financing rates today and see if you qualify for our preferred lender programs.
Disclosures: This content is for educational purposes only and is not financial advice. skidsteerfinancing.com may receive compensation from partner lenders, which may influence which products are featured. Rates, terms, and availability vary by lender and applicant qualifications.
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Frequently asked questions
Why is construction equipment considered a safe asset for lenders?
Lenders prioritize construction equipment like skid steers because they have transparent secondary markets and consistent, broad demand across the industry.
How does the $104.1 billion market size affect my financing options?
A larger market with strong lender confidence typically translates into more competitive financing options, diverse loan products, and better access to capital for contractors.
Does the recent cooling in auction values impact my ability to get a loan?
Despite cooling values, construction equipment remains the top asset class for lenders, suggesting that they continue to view these machines as stable and reliable investments.