Your excavators, dozers and loaders are worth money even when they're parked. Liberty Capital Group's equipment cash-out refinance program turns paid-off heavy equipment into working capital, or refinances an existing equipment loan or lease to lower your payment and pull cash out in the same deal, at up to 60% LTV.
Heavy equipment cash-out refinance at a glance
- Advance: up to 60% LTV, based on the equipment's orderly liquidation value (OLV)
- Deal size: $10,000 to $750,000
- Term: 36 months, fixed payments
- Down payment: $0
- Rates: starting at 9.9%
- Equipment: heavy equipment (yellow iron) only, 15 years old or newer
- Credit: 700+ FICO, clean PayNet history, 3+ years in business
- Credit check: soft inquiry when you apply
Two Ways to Put Your Equipment to Work
Cash out paid-off equipment
Own your iron free and clear? Use it as collateral and turn its equity into working capital for payroll, materials, bonding, a bigger bid or the down payment on your next machine. You keep running the equipment the whole time.
Refinance a loan or lease and cash out
Still paying on a machine through another lender or lessor? The refinance pays off that lender, resets the term to lower your monthly payment, and if there's equity left over, puts the difference in your account.
Most lenders won't touch a refinance on paid-off or used heavy equipment. We work with an exclusive lending partner that does, which is a big part of why this program exists.
How Much Cash Can You Get?
Lenders don't advance against what you paid or against dealer retail. They advance against orderly liquidation value (OLV): what the machine would bring in an orderly sale. That protects the lender, and it's also why the number is usually lower than owners expect.
- Up to 60% LTV. Heavier, higher-value assets get the higher end of the range.
- Balance owed? It's paid off out of the proceeds, and you receive the remaining equity.
- Several machines? They can be combined into one deal, up to $750,000.
| Example (illustration only) | OLV | Up to 60% LTV | Current balance | Approx. cash to you |
|---|---|---|---|---|
| Paid-off excavator | $200,000 | $120,000 | $0 | $120,000 |
| Dozer still under a loan | $300,000 | $180,000 | $90,000 | $90,000 |
| Wheel loader on a lease | $150,000 | $90,000 | $60,000 | $30,000 |
Examples are illustrations, not quotes. Your advance depends on the equipment valuation, your payoff amounts and lender underwriting.
Who Qualifies
Business and credit
- Minimum 700 FICO
- Clean PayNet history
- 3+ years in business
- Bank statements and other supporting documents as required
Equipment
- Heavy equipment (yellow iron) only
- 15 years old or newer
- Free and clear, or financed or leased through another lender with a payoff
- Year, make, model, serial number, hours and photos for valuation
Straight talk: 700 FICO and 3 years in business are hard lines on this program. If you're newer or your credit is lighter, ask about sale-leaseback or our other equipment leasing programs instead.
What Equipment Qualifies
| Qualifies: heavy equipment | Doesn't qualify for this program | |
|---|---|---|
| Examples | Excavators and mini excavators, bulldozers, wheel and track loaders, backhoes, motor graders, skid steers and compact track loaders, telehandlers, cranes, pavers and rollers | Trucks and trailers, soft equipment (computers, software, furniture, signage, POS systems), and equipment older than 15 years |
| Better option | Cash-out refinance, up to 60% LTV | Commercial truck financing, sale-leaseback or working capital |
Cash-Out Refinance vs. Sale-Leaseback vs. MCA
| Cash-out refinance | Sale-leaseback | Merchant cash advance | |
|---|---|---|---|
| The equipment | Secures the loan; the lender holds a lien | You sell it and lease it back | Not used as collateral |
| Payments | Fixed monthly, 36 months | Fixed monthly lease payments | Daily or weekly debits |
| Cost | Rates from 9.9% for qualified files | Usually higher than a refinance | Highest; factor rates, not interest |
| Best for | Established operators with equity in heavy iron | Equipment that doesn't fit the refi program | Short-term gaps only, never long-life equipment |
For an established equipment-heavy business with real equity, a cash-out refinance is usually the smoother, cheaper-per-month path. An MCA is speed money, not long-term capital.
The Honest Pros and Cons
Pros
- Your equipment keeps working while its equity works for you
- Fixed monthly payment, $0 down
- One deal can pay off your old lender and put cash in your account
- Rates starting at 9.9%, far below MCA pricing
Cons
- You're putting debt back on equipment you own outright
- The advance is based on OLV, so expect less than you paid
- A 36-month term means a higher payment than a 60-month new-purchase deal
- Prepayment penalties on your current note can wreck the math, so check them first
Refinancing only makes sense when it lowers your total cost or meaningfully improves cash flow. We'll lay out the numbers side by side before you sign anything.
How It Works
- Get a quote or apply. Takes a few minutes, with a soft inquiry only.
- Send your equipment list. Year, make, model, serial number, hours and photos, plus payoff letters for anything still financed and recent bank statements.
- Valuation and approval. The lender sets OLV and your advance, and we present the offer with the payment and cash-out amount.
- Sign and fund. Existing lenders are paid off directly and the remaining cash goes to your business account.
See What Your Iron Is Worth
Paid off or still paying, find out how much cash your heavy equipment can free up, with no hard credit pull to check.
Equipment Cash-Out Refinance FAQ
What is an equipment cash-out refinance?
It's a new loan secured by heavy equipment your business already owns. If the equipment is paid off, the loan turns its equity into cash. If you still owe on it, the refinance pays off your current lender first and you get any equity left over.
How much can I borrow against my heavy equipment?
Up to 60% of the equipment's orderly liquidation value, from $10,000 to $750,000 per deal. Heavier, higher-value machines get the higher end of the range.
Can I refinance an equipment lease, not just a loan?
Yes. The program can pay off an existing equipment loan or lease, subject to your current lender's or lessor's payoff or buyout amount, and extend your term to lower the payment.
Do trucks qualify?
Not on this program. It's for heavy equipment (yellow iron) only. For trucks and trailers, see commercial truck financing.
How old can the equipment be?
15 years old or newer.
What do I need to qualify?
A 700+ FICO, clean PayNet history, at least 3 years in business, and bank statements and other supporting documents as required.
Will applying hurt my credit?
No. We use a soft inquiry when you apply.
Is this better than a sale-leaseback?
Usually, if you qualify. With a refinance you don't sell your equipment to anyone; it simply secures the new loan. A sale-leaseback is still an option when the refi program doesn't fit.
How do I refinance an equipment loan?
Send the equipment list (year, make, model, serial number and hours) and your current payoff. The equipment is valued at orderly liquidation value, the deal is approved and documented, and the new lender pays off your old lender directly. Any cash-out goes to your business account.
Do farm tractors and forestry equipment qualify?
Yes, when there is enough value in the whole package. Larger tractors, combines, skidders, feller bunchers and forwarders 15 years old or newer can qualify, alone or combined with other heavy equipment.
How is the refinance structured?
Depending on the equipment and the file, it is written as a lease, an equipment finance agreement (EFA), or a term loan secured by the specific assets, with the lender added as lienholder on titled units or a new UCC filed on the specific serial numbers. Prepayment terms depend on which agreement you sign, so ask for them in writing.
Does a refinance give me a new Section 179 deduction?
No. Section 179 applies when equipment is bought and placed in service, not when it is refinanced. Interest on the new financing may be deductible as a business expense. Ask your tax professional how it applies to you.
Is there an equipment refinance calculator?
Use our quote calculator for a payment estimate. As a quick guide, every $100,000 financed for 36 months at the 9.9% starting rate is about $3,222 a month, subject to approval.
Where can I see the program for my state?
Browse state-by-state pages for heavy equipment refinance, cash-out refinance on paid-off equipment, equipment loan and lease refinance, and equipment refinance rates and requirements.
Related: heavy equipment financing · excavator, backhoe and bulldozer financing · equipment leasing
Rates, terms and LTV shown are program guidelines, not an offer or commitment to lend. Approval, advance amount and rate depend on equipment valuation, credit and lender underwriting.