Cash-Out Equipment Refinance

Equity in a paid-off or low-balance machine is capital that is not doing anything except sitting on a chassis. A cash-out equipment refinance puts that equity to work. You refinance the existing loan (or the free-and-clear asset) at a new amount above the current payoff, and the difference between what you owe and what we lend comes to you as cash. The machine keeps running. The money hits your account.

We do cash-out refinances on boom lifts, scissor lifts, aerial lift fleets, and other access equipment with meaningful equity. Minimum deal is $50,000. Most operators use the capital for expansion, fleet additions, working capital for a large contract, or covering off-season cash flow gaps. The machine is still your collateral. You keep running it.

How Cash-Out Refinancing Works on Equipment

The mechanics are simple. We establish the current market value of your equipment through an appraisal or comparable-market analysis. We then determine how much the lender is willing to advance against that value. If the machine is worth $150,000 and you owe $40,000 on it, a lender advancing 80 percent of value would lend $120,000. The $40,000 goes to pay off the existing lien, and $80,000 goes to your account. You now have a new note for $120,000 with a fresh term and a monthly payment on the full amount.

On equipment you own free and clear, the same math applies without the payoff step. If the machine is worth $100,000 and we lend 80 percent, you receive $80,000 and make payments on the new note. The equipment becomes the collateral for a loan where none existed before.

Rates and terms on a cash-out refi will reflect the new total balance, so the monthly payment will generally be higher than a simple rate-and-term refinance. The trade-off is having the capital in hand for growth. Operators who run the numbers often find that the incremental payment is covered by what the additional capital enables.

When a Cash-Out Refi Makes Sense for a Lift Operator

The clearest use case is buying additional equipment without a full fresh down payment. A contractor who owns a 60-foot boom lift outright can cash out $60,000 to $80,000 of equity and use that as the down payment on a second unit, effectively doubling fleet capacity without tapping operating cash. The first machine funds the second machine.

A second good use is project startup capital. General contractors and specialty crews sometimes win a contract that requires a significant initial outlay for materials, permits, or mobilization before the first draw comes in. Rather than a high-interest line of credit, the equity in owned equipment can provide that bridge at more favorable terms.

A third use is restructuring debt. An operator with high-interest debt on other business obligations can sometimes use equipment equity to pay off more expensive balances and consolidate into a single note at better overall terms.

It is worth comparing a cash-out refi against an aerial lift sale-leaseback before committing. Both pull equity from owned equipment, but the structures differ. A leaseback transfers title; a cash-out refi keeps the machine in your name throughout. For operators who want to maintain ownership, the cash-out refi is the right path.

Can I do a cash-out refinance on equipment I still owe money on?

Yes, as long as there is enough equity above the payoff to make the transaction worthwhile. The lender pays off the existing lien first, then delivers the remaining proceeds to you. If the payoff balance is close to the equipment's current market value, there may not be much cash to pull. We will run the numbers honestly before you invest time in the process.

How much cash can I realistically get out of a boom lift worth $120,000?

Advance rates on well-maintained aerial lifts in active secondary markets typically range from 75 to 90 percent of current appraised value. On a $120,000 machine with no existing lien, that puts the potential cash-out between $90,000 and $108,000, less any transaction costs. If there is an existing payoff balance, that comes out of the proceeds first.

Does a cash-out refinance hurt my credit?

The loan application generates a credit inquiry. The new loan will also appear as an additional obligation on your credit profile. Neither of these is permanently damaging, and operators with a record of on-time payments typically see their credit profile strengthened over time by adding a positive-performing loan. The concern is more practical: taking on a larger monthly obligation than the business can comfortably service.

What can I use the cash for?

There are no use restrictions imposed by the lender on how you spend the proceeds from an equipment refinance. You can use it for additional equipment, working capital, project startup costs, debt payoff, or any other business purpose. It is your capital.

Is a cash-out refi better than taking out a business loan or line of credit?

It depends on your credit profile and what you are trying to accomplish. An equipment cash-out refi uses hard collateral (the lift), which can make approval easier than an unsecured business loan and often produces a better rate than a business credit line. The trade-off is that you are encumbering the equipment with a new lien. If the machine is core to your revenue, make sure the payment is well within what the business generates.