Do Equipment Brands Matter to Lenders?

Not all equipment is viewed equally by lenders. Here's why brand can influence your financing options - and how to use that to your advantage.

Why Lenders Care About Brand

Lenders assess more than just your credit - they also evaluate the equipment you’re financing. Trusted brands give lenders greater confidence in the asset's reliability, serviceability, and long term value.

Resale Value = Reduced Risk

A recognizable brand typically holds its value better over time. Lenders know that equipment from manufacturers like Vermeer, Ditch Witch, Bobcat, Caterpillar, and John Deere can be liquidated quickly, which makes them more willing to offer favorable terms.

Reliability and Serviceability

Machines from reputable brands are easier to repair and maintain. This reduces the chances of downtime and missed payments, giving lenders even more reason to approve and support your deal.

When Brand Doesn’t Matter (As Much)

In subprime scenarios or lower dollar loans, lenders may prioritize your payment history and down payment over the brand of equipment. However, known brands still help strengthen your application.

How to Use This Knowledge to Your Advantage

If you're deciding between machines, consider not just the upfront cost but how the brand will impact your financing terms, resale value, and reliability. That small brand upgrade could lead to easier approvals and lower interest.

Final Thought

The name on the side of your machine can say a lot - especially to your lender. If you want help weighing your options, contact us and we’ll walk you through it.