Paragon Bank is a FTSE-250 specialist lender with a long track record in commercial lending. Their asset finance division operates with a model that sits between the automated scoring of digital lenders and the full bespoke underwriting of specialist firms - offering meaningful human judgement on each case while maintaining a commercially efficient process.
For excavator finance specifically, Paragon's willingness to look past asset age makes them a useful option when a contractor is buying a well-maintained but older machine. Many mainstream lenders apply hard cutoffs at 5–7 years; Paragon's underwriters will consider machines up to 12 years old where the condition, service history and business profile justify the lending.
Their £25,000 minimum positions them in the mid-market - not suitable for compact excavators or mini-diggers, but strong for the mainstream 8t–30t market that most construction businesses operate in.
Paragon Bank Excavator Finance Rates - October 2026
| Factor | Details |
|---|---|
| Rate range (APR) | 5.5% – 14% |
| Typical term | 24 – 60 months |
| Minimum finance | £25,000 |
| Maximum finance | £2,000,000 |
| Deposit required | 0% – 20% |
| Decision speed | 48 – 96 hours |
| Finance types available | Hire Purchase, Finance Lease |
| Asset age considered | Up to 12 years (condition dependent) |
How Do Paragon Rates Compare to the Market?
Paragon's rates are in the same broad tier as Aldermore and Shawbrook - competitive but not market-leading for clean credits. They tend to price slightly more favourably on aged assets than Aldermore, reflecting their greater comfort with older plant. For a business with clean credit buying a 10-year-old excavator at a fair market price, Paragon may well offer the best rate available in the independent lender market.
For new machines or very clean credits, Lombard or Novuna will still offer better pricing. For adverse credit, Time Finance or Haydock have broader appetite. Paragon's target customer is the middle ground: an established limited company buying a machine - new or aged - without any headline credit issues, who wants a fair rate and a straightforward process.
Paragon Strengths for Excavator Finance
- Mid-market focus with specialist depth - Paragon's semi-specialist model means established businesses get the rate advantage of a volume lender without the rigid criteria of automated scoring.
- Good on aged assets - one of the better mainstream lenders for excavators over seven years old, provided condition and trading history are sound. This is a genuine market gap that Paragon fills.
- Sensible documentation requirements - unlike some challenger lenders who require extensive management accounts even for modest sums, Paragon's process is proportionate to deal size. Smaller transactions require less documentation.
- Up to £2m - sufficient for most individual machine purchases and small fleet additions without requiring specialist structuring.
Paragon Limitations for Excavator Finance
- £25k minimum excludes compact machines - micro-diggers and smaller mini-excavators are outside their appetite. Close Brothers or Aldermore at £5–10k minimum are better suited to those.
- 48–96 hour decisions - not the fastest lender. For auction purchases where you need same-day or next-day confirmation, Novuna or Close Brothers are better choices.
- Limited appetite for sole traders - Paragon is primarily a limited company lender. Sole traders are considered case by case but are not their core market.
Rates shown are indicative as of October 2026. All finance subject to status. Doulton Bridging Finance is a broker, not a lender.