Cash-Out Equipment Refinance for Boom Lifts

Equity in a paid-off or nearly paid-off boom is not doing anything sitting on the depreciation schedule. A cash-out equipment refinance turns that equity into a check, puts the machine back on a note, and gives you capital to deploy on the next contract, the next unit, or a tight payroll month. You keep the machine. You keep it working. You get the cash.

This is a loan structure, not a lease. The refinance lender places a new first lien on the machine, pays off any existing balance, and advances the difference to you. Monthly payments on the new note service the debt. Title stays in your name throughout. We fund cash-out refinances on boom lifts from $50,000 on up, B and C credit considered, most deals closing in roughly two weeks.

The Mechanics of a Cash-Out Refinance

Lenders establish the machine's current market value using published guides and the machine's serial number, year, and hours. They set a loan-to-value ratio, commonly 80 to 90 percent on clean units in good condition. Subtract any existing payoff from that number and the remainder is available as cash out. A $150,000 machine with an 85% LTV gives you $127,500 in total loan availability. If you owe $40,000, you get $87,500 in cash and the new note is $127,500 paid over the new term.

The rate on a cash-out refinance reflects the machine value, your credit profile, and the term length. It will typically be higher than a rate on a new purchase loan because the lender is advancing past the original purchase price based on current appraised value, which carries slightly more risk than financing a known sale price. The difference is usually modest and the capital you receive offsets the rate spread quickly if it is deployed productively.

Machines well below 3,000 hours from recognized manufacturers, JLG, Genie, Haulotte, and others with active dealer networks, are the easiest to place. Older machines or units with high hours require either a more conservative LTV or a physical inspection. We tell you the LTV estimate before you spend time on paperwork.

Who Does a Cash-Out Refinance

The most common use case is fleet expansion. You own a 60-foot boom clear. You find a used 80-foot machine that would expand what you can bid. A bank will not write a second equipment loan yet because they want to see more operating history. The cash-out refinance on the machine you already own provides the down payment or full purchase price on the new unit outside the bank's credit box.

Roofing contractors and painting contractors use this pattern regularly. The core machine is a proven revenue generator that lenders are comfortable with. The cash from the refinance buys the next unit or funds mobilization on a large commercial contract.

A second common use: working capital for a bidding business that is winning more work than it anticipated. Awarded contracts do not always come with upfront payment. You need materials, subcontractors, and crew before you invoice. The equity in the equipment is a faster source of capital than a business line of credit at a bank that needs six weeks to underwrite.

The structure also works for operators who want to stay on a loan rather than move to a lease. If keeping the asset on your balance sheet and maintaining depreciation is important, the cash-out refinance preserves that. Compare this to the sale-leaseback, which converts the machine from owned to leased. Both pull equity. The balance sheet and tax treatment differ.

Boom Lift Values and Why They Support Cash-Out Well

High-demand boom lift models hold their value better than most equipment categories. A five-year-old telescopic boom from JLG or Genie that has been maintained and runs cleanly typically trades at 50 to 65 percent of its original purchase price. That residual value is what makes the cash-out refinance viable years after purchase.

In contrast, some categories of equipment depreciate rapidly enough that there is no equity left to extract by year three or four. Boom lifts are not that. The commercial construction, industrial maintenance, and utility markets keep demand steady across the market cycle, which supports residual values that lenders are willing to lend against.

Rough-terrain units and the larger platform-height classes, 80-foot and above, tend to hold value particularly well because the supply of clean used units is more constrained. A used 80-foot boom with under 2,000 hours is a genuine commodity in the used market and lenders know it.

See What Your Boom Is Worth as Capital

Give us the machine details: year, make, model, hours, and current balance if there is one. We come back with an estimated LTV and cash-out amount before you fill out any paperwork. $50,000 minimum loan amount, B and C credit considered, funding in roughly two weeks.