Asset Class · Construction Equipment

Private Capital Secured by
Construction Equipment

Excavators, cranes, wheel loaders, bulldozers, and heavy machinery from recognized manufacturers accepted as collateral. TLN conducts its own valuation and verification. A clear title is not a prerequisite to submit, and where an existing lien exists, the outstanding balance is factored into the capital structure, subject to underwriting and to the requested capital and the equipment's verified value supporting it. Initial review typically within one business day.

Heavy Equipment as Capital

Why Construction Equipment Is Significant Collateral

Construction companies, contractors, and equipment owners frequently hold significant capital in their machinery fleets, excavators, crawler cranes, loaders, and specialized equipment representing hundreds of thousands to millions of dollars in asset value. Yet that capital is typically inaccessible without selling equipment that is generating revenue, encumbering it through equipment finance arrangements that restrict use, or navigating the slow timelines of traditional commercial lending.

The Liquidity Network provides an alternative. Private capital arrangements secured by construction equipment allow contractors and equipment owners to access liquidity against the verified value of their machinery, without the delays, income documentation requirements, and personal financial scrutiny of traditional lending. We evaluate the equipment, verify its value, conduct our own research on title and any existing liens, and structure capital arrangements that reflect the asset's worth.

Our underwriting approach for construction equipment is methodical and specific to the asset class. We know that a low-hours Caterpillar 395 excavator has meaningfully different value than a comparable unit with twice the hours. We know that a Liebherr LTM crawler crane with documented maintenance history, current certifications, and a full rigging package is different from one missing its documentation. We apply this knowledge, not generic formulas, to determine the capital available against your equipment.

At a Glance

Asset Type
Construction & Heavy Equipment
Examples
Excavators, dozers, loaders, cranes, articulated haulers, drilling and paving equipment
Loan Range
$10,000 – $10,000,000+
Initial Review
Typically within one business day
Key Factors
Make, model year, hours, maintenance history, attachments, auction comparables, UCC position
No Credit Check
Asset-based underwriting only

Documentation That Strengthens Review

None of the following is required to submit. TLN conducts its own research, valuation, and verification on every asset. When these items happen to be available, they strengthen the valuation basis and can support a faster review and stronger preliminary terms:

  • Equipment serial number and manufacturer identification plate
  • Ownership or title documentation such as a bill of sale, manufacturer's statement of origin, or certificate of title where applicable
  • Current hour meter reading
  • Maintenance and service records
  • A current inspection report from a qualified mechanic
  • Photographs of all major components

TLN also conducts its own UCC lien searches in all applicable jurisdictions, and where an existing lien exists, the outstanding balance is factored into the capital structure, subject to underwriting and to the requested capital and the equipment's verified value supporting it. Every submission is reviewed individually, and eligibility and terms are not guaranteed.

Eligible Equipment

What Equipment May Qualify

The Liquidity Network reviews construction and heavy equipment across the full spectrum of the industry. Not exhaustive, all equipment reviewed on individual merits.

Excavators & Dozers

Crawler excavators from Caterpillar, Komatsu, Volvo, Hitachi, and Liebherr, from compact 5-ton machines to large mining-class units, alongside track-type dozers and motor graders from Caterpillar, Komatsu, and WIRTGEN. Hours, undercarriage status, and blade configuration are primary value factors.

Wheel Loaders & Haulers

Caterpillar, Komatsu, Volvo, John Deere, and Case wheel loaders and articulated haul trucks, evaluated on hours, bucket and attachment configuration, and overall condition. Late-model, thoroughly documented units carry the strongest residual value.

Cranes & Lifting Equipment

Lattice-boom crawler cranes from Manitowoc, Liebherr, Link-Belt, and Kobelco; self-erecting and conventional tower cranes from Potain, Terex, and Wolffkran; and aerial work platforms from JLG, Genie, and Skyjack. Jib configurations, boom lengths, and current certifications are evaluated as part of the complete package.

Paving & Compaction

Truck-mounted and stationary concrete pumps, mixers, and placing booms from Schwing, Putzmeister, and Alliance, along with rollers and compaction equipment, evaluated with full attachment inventories and condition review.

Drilling & Foundation Equipment

Rotary drilling rigs, soil mixing equipment, and foundation drilling machinery from Bauer, Soilmec, and Liebherr Foundation Equipment, plus hydraulic and vibratory pile-driving hammers from APE, Dawson, and BSP, evaluated with full attachment inventories.

Fleet & Multi-Unit Portfolios

Mixed fleets and multi-unit equipment portfolios can be reviewed together, with each machine assessed on its make, model year, hours, and documentation to structure capital against the combined asset value.

Equipment Valuation Factors

How TLN Values Heavy Equipment

Equipment valuation for lending purposes requires knowledge of the construction machinery market, not generic depreciation schedules. TLN reviews each machine against current auction results, comparable transactions, and the specific usage and documentation factors that professional buyers weigh when making purchase decisions.

Hour Meters & Depreciation: In the construction equipment market, hour meter readings are the primary measure of usage, the equipment equivalent of odometer mileage. Lower hours relative to a machine's age generally indicate less wear and stronger residual value. However, hours alone do not tell the complete story. A well-maintained machine with 10,000 hours may be in better condition than a neglected machine with 4,000 hours. We look at the full picture:

  • Hour meter reading relative to age: Typical annual utilization for construction equipment varies by category; we apply category-specific utilization benchmarks to assess whether a machine's hours are high, normal, or low for its age.
  • Maintenance records: Documented oil changes, filter replacements, hydraulic fluid services, undercarriage inspections, and major component rebuilds, tied to specific hour intervals, provide evidence that the machine was maintained according to manufacturer recommendations.
  • Recent inspection report: An independent inspection by a qualified mechanic, noting the condition of major systems (engine, hydraulics, electrical, undercarriage, structural), is a key input to our valuation assessment.
  • Comparable market data: We reference current auction results from Ritchie Bros., IronPlanet, Purple Wave, and Machinery Trader to establish current market pricing for comparable units, then adjust for condition, hours, configuration, and documentation quality.

UCC Lien Searches: Article 9 of the Uniform Commercial Code governs secured transactions in personal property throughout the United States. When a lender or financing company has a security interest in equipment, they perfect that interest by filing a UCC-1 financing statement with the appropriate state filing office. These public filings are searchable, and a thorough UCC search reveals whether any prior secured party has a claim on the equipment you wish to pledge as collateral.

A clear title is not a prerequisite to submit, and an existing lien or financing statement does not automatically disqualify the equipment. Construction equipment often carries existing financing, which is fine. TLN conducts its own research, valuation, and verification on every asset, including comprehensive UCC searches in all applicable jurisdictions. Where there is an existing lien, the outstanding balance is factored into the capital structure, subject to underwriting and to the requested capital and the equipment's verified value supporting it.

We also conduct thorough review of any applicable state titling requirements for equipment that may carry certificates of title, review insurance documentation to confirm adequate coverage, and verify manufacturer serial number identification plates against equipment documentation.

Manufacturer & Dealer Documentation

For equipment where manufacturer certification or dealer service records are relevant, particularly cranes requiring load charts, inspection certifications, and capacity documentation, we engage specialists familiar with those manufacturers' technical requirements. Crane manufacturers including Manitowoc, Liebherr, and Link-Belt issue load charts, rigging diagrams, and configuration-specific capacity data that are integral to the crane's operational value and therefore to our collateral assessment.

Authorized dealer service records (as opposed to third-party service records) carry additional weight in our documentation review, as they provide an independent, branded chain of custody for the machine's service history. For newer equipment still under manufacturer warranty, warranty documentation and transferability information are also relevant inputs.

Equipment-Literate Underwriting

We understand hour meters, undercarriage wear, hydraulic system condition, and the difference between a thoroughly documented machine and one with gaps in its service history. Our review reflects this specialist knowledge, not generic formulas, and each machine is assessed by reviewers who know the asset class.

Custody During the Loan

For most equipment-backed arrangements, the equipment remains in your custody and can stay in service during the loan term, with TLN holding a perfected security interest as its collateral position. Specific terms are set out in the loan agreement, and at maturity, repayment releases the lien.

The Process

Three Steps to Capital

01

Submit Equipment Details

Provide make, model, year, serial number, current hours, condition description, maintenance record summary, and ownership documentation if you have it. We assess and respond within hours.

02

Inspection, UCC Search & Terms

We conduct UCC lien searches, engage an independent inspector, and review maintenance records. A non-binding capital offer is then issued. Initial reviews are typically completed within one business day, depending on the asset, available documentation, ownership verification, valuation complexity, and transaction details. Timing, eligibility, and terms are not guaranteed.

03

Security Interest & Funding

Legal documentation establishing TLN's security interest is executed. Capital disbursed. Equipment remains in your custody unless otherwise agreed. At maturity, repay to release the lien.

Common Questions

Heavy Equipment Lending FAQ

What types of construction equipment qualify as collateral?
Excavators, crawler cranes, tower cranes, wheel loaders, bulldozers, motor graders, pile drivers, concrete pumps, aerial work platforms, forklifts, compactors, and other heavy construction machinery from recognized manufacturers (Caterpillar, Komatsu, Volvo, Liebherr, Manitowoc, Terex, and similar) may qualify subject to individual review.
How do hour meters affect equipment valuation?
Hour meter readings are the primary measure of usage for construction equipment. Lower hours relative to age generally indicate a stronger collateral profile. We verify hour meter readings independently, review maintenance records, and apply depreciation models that account for actual usage versus manufacturer-recommended service intervals.
What is a UCC lien search and why is it required?
A UCC lien search confirms whether any existing security interests, from banks, equipment finance companies, or other lenders, have been filed against the equipment. TLN conducts its own research, valuation, and verification, including thorough UCC searches. A clear title is not a prerequisite to submit, and not having it does not automatically disqualify the equipment. An existing lien does not automatically disqualify the equipment either. Where there is a lien, the outstanding balance is factored into the capital structure, subject to underwriting and to the requested capital and the equipment's verified value supporting it. Every submission is reviewed individually, and eligibility and terms are not guaranteed.
Does the equipment need to be in working condition?
Working condition is generally required. Equipment must be operable and in reasonable working order consistent with its age and hours. Current inspection reports and maintenance records are requested. Non-operational equipment may be considered in limited circumstances where repair costs are clearly defined and underlying asset value is well-established.
How are construction equipment loans structured?
Loan amounts are based on the equipment's current fair market value as determined by independent appraisal, current auction comparable data, and manufacturer trade-in values, with applicable LTV ratios. Terms are typically structured for 6 to 24 months.
What documentation is helpful for review?
None of the following is required to submit. TLN conducts its own research, valuation, and verification on every asset. When these items happen to be available, they strengthen the valuation basis and can support a faster review and stronger preliminary terms: equipment serial number and manufacturer identification plate, ownership or title documentation such as a bill of sale, manufacturer's statement of origin, or certificate of title where applicable, current hour meter reading, maintenance and service records, a current inspection report from a qualified mechanic, and photographs of all major components. TLN also conducts its own UCC lien searches in all applicable jurisdictions, and where an existing lien exists, the outstanding balance is factored into the capital structure, subject to underwriting and to the requested capital and the equipment's verified value supporting it. Every submission is reviewed individually, and eligibility and terms are not guaranteed.
Learn More

Related Resources

Also Accepted

Related Asset Classes

Ready to Access Equipment-Backed Capital?

Submit your equipment details for a confidential review. No credit check. No obligation. Initial review typically within one business day.

Important Disclosures All capital arrangements are subject to independent equipment appraisal, UCC lien searches, title verification, and TLN's underwriting approval. Loan-to-value ratios, rates, and terms are indicative and vary based on equipment condition, hours, documentation, and prevailing market conditions. Asset-backed loans use the borrower's collateral to secure the obligation; failure to repay may result in enforcement of TLN's security interest and potential loss of the pledged equipment. TLN LLC. All inquiries are confidential.