Finance question
Can I get finance to buy an earthmoving business?
Often yes, and the machines make it easier than most business purchases. Excavators, loaders and trucks can be financed against their own market value, while the goodwill and contracts usually need property, a larger deposit or both. Where a listing states a fleet value, the machines are 53 to 59% of the asking price, so a large part of the deal can fund against the fleet, subject to lender assessment.
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The short answer
The fleet is the part lenders like
An earthmoving business is two assets sold together: a fleet with a resale market, and goodwill in the form of contracts, crews and customers that has none. Lenders treat the two differently. Equipment finance, commonly a chattel mortgage, lends against each machine's market value. Goodwill is harder, because contracts can end and earnings often depend on the owner.
The split matters because it tells you how much of your deal can fund on its own. In our earthmoving business guide, the listings that state a fleet value put the machines at 53 to 59% of the asking price: a Sydney civil business at $750,000 with a fleet of about $400,000, a Western Australian contractor at $3.4 million with plant of about $2.0 million. That leaves roughly 41 to 47% as goodwill, stock and contracts, and that is the part a lender wants security behind.
Asking prices in that guide run from $160,000 for a small hire franchise resale, machines extra, to $7.5 million or more for a Brisbane civil contractor. Whatever the size, the fleet needs an independent valuation, an itemised list with hours and serial numbers, and clean PPSR searches. If the seller owes money on machines, it is cleared at settlement or the lender must agree to the transfer. Ventas is a broker across 40+ lenders, and there is no upfront fee to you. The lender pays us on settlement.
Do you qualify?
What a lender checks on an earthmoving purchase.
An itemised fleet
Make, model, year, hours and serial numbers, with a valuation.
Reconciling financials
Two to three years of accounts that match lodged BAS and bank statements.
Contracts that transfer
No single customer carrying the business, with consents and licences confirmed.
Your experience
Running civil crews or plant, preferably in the same kind of work.
Why earthmoving deals can fund well
Machines resell
A lender can value a loader or tipper and sell it if it has to.
Security stacks
Fleet, goodwill and property can each back a different layer.
Property can fill the gap
Equity in your home covers the goodwill share lenders will not fund.
A worked example
Take the Sydney civil listing at $750,000, with a fleet of about $400,000. That leaves $350,000 of goodwill, stock and contracts. Equipment finance of $300,000 goes against the machines, savings cover the other $100,000 of fleet, and the goodwill is split between a $150,000 acquisition loan and $200,000 secured on a property you own. Illustrative only.
Common questions
Frequently asked questions
Do I need a deposit to buy an earthmoving business?
Usually yes. The machines can fund against their own value, but lenders are cautious about goodwill and contracts, so expect to put in cash or equity from a property for that part.
What happens to finance the seller owes on machines?
On a debt-free sale it is paid out at settlement and the seller's lender releases its PPSR registration. If you take the machines subject to their finance, that lender has to agree.
Does an earthmoving contractor's licence or prequalification transfer?
Not automatically. Prequalification and contractor licences generally belong to the company or licensee, so an asset purchase may not carry them across. Check each one in writing before you sign.
Can I buy the yard or freehold with the business?
Yes, and it usually helps, because land and buildings give the lender property security. A freehold is priced and dutied separately from the business.