# Forestry Equipment Financing Fundamentals

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Last modified: 2026-05-29T19:39:17+00:00
Type: efin_guide

## Summary

Forestry Equipment Financing Fundamentals. Comprehensive guide.

## Content

Forestry equipment financing covers feller bunchers, skidders, harvesters, processors, and supporting equipment used by logging operators, timber companies, and forestry contractors.

Equipment categories and typical financing

EquipmentTypical priceUseful life
Feller buncher$400K-$900K10-15 years
Skidder (4-wheel grapple)$250K-$500K12-15 years
Track harvester$500K-$1M10-15 years
Processor head$100K-$300K8-12 years
Forwarder$400K-$800K12-15 years
Log loader$200K-$500K15-20 years
Chipper (large)$200K-$500K10-15 years
Log truck (chassis + trailer)$200K-$400K10-15 years


Industry-specific considerations

Harsh operating environment. Forestry equipment operates in tough conditions. Higher wear, shorter useful lives, larger maintenance reserves required.
Contract-based revenue. Logging operators typically work under contract to timber companies. Lenders look at contract terms.
Commodity price exposure. Lumber and pulp prices affect operating margins. Lenders may evaluate hedging or contract pricing.
Geographic licensing. Some states require forestry contractor licensing. Verify before applying.

Typical financing terms


Rate range: 8% to 15% APR depending on credit tier and equipment age
Term: 48 to 84 months
Down payment: 0% to 25% depending on credit and equipment
SBA eligibility: Yes; SBA 7(a) and 504 programs are well-suited


Lender pool


OEM captives: John Deere Forestry, Tigercat, Ponsse
Specialty forestry equipment lenders
Community banks in timber regions
USDA Rural Development for some forestry operations


What can go wrong


Industry-specific regulatory changes (emissions, licensing, safety) affecting equipment value
Customer or contract concentration affecting cash flow
Equipment age limits in lender underwriting boxes
Seasonal revenue mismatched with monthly payments
Inadequate maintenance reserves leading to deferred-service buildup


Action steps


Identify specific equipment with model and configuration
Get quotes from at least one dealer and any captive financer
Pull last 6 months of bank statements and 2 years of tax returns
Run payment scenarios at different down payments
Consider soft-pull prequalification before committing to a specific lender
Apply with forestry equipment specifics in the notes


See also our insurance requirements guide and Section 179 strategy for tax planning.