Caterpillar 320 Excavator Refinancing

The Cat 320 has equity in it. If you bought it used, paid it down, or own it outright, that equity is capital sitting idle inside a machine that already does its job every day. A cash-out refinance turns it into a lump sum, deposited to your account, usually within a week or two of approval. You keep the 320, you keep digging, and the cash funds whatever you actually need: another piece of iron, payroll float, materials for the next job.

The Cat 320 is a 20-ton hydraulic excavator that has been a site-work workhorse for decades. Contractors run it on foundation digs, utility trenches, pond and lake work, and medium demolition. The machine holds its value because it is well-supported, parts are everywhere, and any operator who has run a stick knows the controls. That retained value is exactly what makes refinancing straightforward. Lenders can see what the asset is worth and underwrite against it without a lot of hand-holding.

We work with excavation and site work contractors across the country who have Cat iron on their books and need cash today. The process is built for working owners, not bank committees.

Not every machine refinances equally. The Cat 320 scores well for a few reasons that matter to lenders and owners alike.

First, the used market for 320s is deep and liquid. When a lender takes a lien on a machine, they care about what it would sell for if they ever needed to recover it. A Cat 320 with reasonable hours has an established secondary market. Equipment dealers, auction houses, and private buyers all know what these machines are worth, so appraisal risk is low.

Second, operating weight of roughly 20 metric tons puts the 320 in a price range where lenders are comfortable writing checks that actually move the needle for your business. Machines in this class commonly appraise in the range that qualifies for our application-only process, meaning you can get through underwriting without producing multiple years of tax returns or audited financials.

Third, Cat 320s run. They accumulate hours over long working lives when maintained properly, which means the machine you are refinancing today may still have years of productive life ahead. Lenders look at remaining useful life when setting terms. A well-maintained 320 with documented service history will finance better than a neglected one of the same model year.

If you want to compare across the Cat line, see also Cat 336 refinancing for larger projects that pushed you into a bigger machine.

The mechanics are simple. You own a Cat 320. We determine what it is worth. We pay off any existing lien (or, if you own it free and clear, you skip that step). The remaining equity comes to you as cash. You make monthly payments on the new loan against the machine's value.

If there is already a balance owed on the 320, we pay that lender off as part of closing. Your old note disappears. The new loan is with us, at new terms. Depending on your original rate and what the market looks like now, this can also reduce your monthly payment, free up cash flow, and simplify your books, all at the same time as the cash-out.

For contractors handling multiple machines and multiple lenders, a refinance can fold everything into one place. That is an outcome worth considering alongside the immediate cash need. Talk to us about a debt consolidation equipment loan if you have three or four machines on different payment schedules.

Timeline from application to cash: roughly one to two weeks for most deals. Some straightforward deals move faster. We target speed because idle money is the same problem as idle iron.

A few types of owners refinance Cat 320s with us.

The contractor who bought the machine used two or three years ago, has paid it down significantly, and now sees an opportunity (a new contract, a second machine needed, an employee they want to hire) but does not want to wait for a traditional bank. The equity is there. Getting to it quickly is what we do.

The owner who financed at a rough time, took a higher rate because credit was imperfect, and now wants to revisit the terms. Even if the primary goal is rate improvement rather than cash-out, we can help. Equipment financing with B/C credit is a lane we work regularly, and we see owners improve their position over time.

The operator running a Cat 320 free and clear who needs growth capital without touching a business line of credit. Pulling equity from the machine keeps the revolving credit clean for shorter-term needs.

The construction contractor who has the machine and the jobs but finds cash flow pinched between billings. A cash-out on the 320 creates a buffer without selling the asset.

Application-only financing is available up to roughly $400,000 depending on the deal. That covers most Cat 320 refinancing situations without requiring you to produce years of financials.

For deals in that range, the basic package is straightforward: a completed credit application, three months of business bank statements, and information on the machine (year, hours, serial number, current lien payoff if applicable). We do not need a full business plan or a CPA letter to start the conversation.

B and C credit is welcome. We have seen operators with a few blemishes on their credit file own strong machines and run real businesses. The asset matters, the cash flow matters, and your story matters. A score alone does not tell that whole story.

Funding timeline is typically one to two weeks from a complete application package. Faster is possible when everything comes in clean and the machine information is easy to verify.

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