Construction financing is a type of loan where a lender or other financier provides funding for the borrower to purchase heavy equipment, like bulldozers. Lenders offer these loans for small businesses in the construction industry that either don’t want to use their working capital to buy the equipment up front or can’t pay for the equipment in cash. The borrower then repays the loan with interest over a specified time period. In heavy equipment financing arrangements, the heavy equipment itself usually serves as collateral for the funding. In some cases, additional collateral may be required to secure the financing.