A construction equipment loan is given to individuals or companies engaged in the business of real estate development or construction. The primary purpose of this loan is to help the borrower acquire costly equipment and heavy machinery required for the construction of buildings and other real estate projects. 

A construction loan may be sought by a builder or an individual to cover the costs of building or extensively remodeling a house. Construction loans are usually short-term about a year and are then folded into a mortgage loan. A strong credit history is required as the loan is not collateralized.