Financing Used Roofing Equipment

A used roll former, gutter machine or power folder can cost less than new, but it is still a significant purchase for a small roofing business. Many contractors finance at least part of it. This page gives a general overview of the common options and what to prepare. It is not financial advice, and terms vary widely by lender, credit history and the equipment itself.

The site is not a lender and does not arrange, broker or endorse financing. Lenders can join as members and list their services on their profiles, and you can contact them directly.

Common financing options

Equipment loans

An equipment loan is a term loan used to buy a specific machine, with the machine itself usually serving as collateral. You own the equipment from the start, and the lender typically files a lien until the loan is paid off. Banks, credit unions and specialist equipment finance companies all offer them. Some lenders have limits on the age of used equipment they will finance, or want an appraisal or inspection, so ask early.

Equipment leases

With a lease, a leasing company buys the machine and you pay to use it over a set term. Leases come in different structures. Some end with a nominal buyout and work much like a loan; others have a larger buyout or let you return the equipment. Lease payments may be treated differently for tax purposes than loan payments, so talk to your accountant about which structure fits your business.

Business lines of credit

A line of credit lets you draw funds as needed up to a limit and pay interest only on what you use. It can be handy for smaller purchases, such as a portable brake, tooling or a profile change, or for covering a deposit while other financing is finalized. Rates and terms are often variable, and lines of credit are usually unsecured or secured by general business assets rather than a single machine.

Seller financing

Some sellers, especially owner-operators retiring or downsizing, will accept payments over time. Seller financing can be flexible, but put every term in writing: price, payment schedule, interest if any, what happens on a missed payment, when title transfers and whether the seller keeps a security interest until paid. Both sides may want an attorney to review the agreement.

What lenders typically ask for

Requirements differ, but most lenders ask for some combination of:

  • Business information: legal name, time in business, entity type and tax ID.
  • Credit: business credit, and often the owner’s personal credit for smaller businesses.
  • Financial documents: recent bank statements, tax returns, and sometimes profit and loss statements or a balance sheet.
  • Equipment details: a quote or bill of sale with make, model, serial number, year if known, condition, price and seller information.
  • Down payment: many lenders expect some money down, particularly for older equipment or newer businesses.
  • Proof of insurance on the equipment once purchased.
  • Personal guarantee: common for small businesses.

Having these ready before you find the right machine helps you move quickly when a good listing shows up.

Tips before you sign

  • Compare the total cost, not just the monthly payment. Ask about fees, prepayment penalties and the buyout amount on leases.
  • Confirm the seller’s title is clear. If the seller still owes money on the machine, their lender’s lien needs to be paid off as part of the sale. Check UCC filings in the seller’s state.
  • Make sure the machine can earn its payment. Estimate how many jobs per month it will support and whether that covers the payment with room to spare.
  • Do not let financing replace inspection. A lender approving the loan does not mean the machine runs well. Follow the safety tips and the used roll former buying guide.
  • Be cautious of “guaranteed approval” offers that ask for upfront fees. Legitimate lenders do not usually charge you before approving a loan.

Learn more

For a deeper walkthrough, read the guide to financing used roofing equipment. You may also find new vs used roofing machines useful when deciding how much to borrow.

Lenders who work with roofing contractors are welcome to join and describe their programs on their profiles. Contractors can ask about others’ experiences with financing on the community board, keeping in mind that every business’s situation is different.